In the case of The American Insurance Company and The Ocean Insurance Company (of New York) vs. 356 Bales of Cotton, David Canter Claimant and Appellee, the Supreme Court was asked to decide whether an insurance company could be held liable for a shipment that had been damaged by sea water while in transit. In this particular case, the cotton bales were shipped from Mobile Bay to Liverpool but were exposed to seawater during their voyage which caused them significant damage. The insurers argued that they should not be held responsible as it was an “act of God” or unavoidable accident beyond their control; however, the court found in favor of Mr. Canter who claimed against them for damages due to negligence on behalf of those responsible for loading and securing his cargo onto the ship. Ultimately, it was determined that since there had been no effort made by either party involved with loading or securing these goods prior to departure - such as providing proper ventilation or packing materials - then both parties should bear responsibility for any losses incurred due to improper storage methods employed at time of shipping.

In the case of The American Insurance Company, and The Ocean Insurance Company (of New-York) vs. 356 Bales of Cotton, David Canter Claimant and Appellee, the dissenting opinion was that a policy issued by an insurance company should be interpreted in favor of the insured party. In this case, it was argued that when an insurance policy states “all other perils” as part of its coverage clause without specifying what those perils are or how they will be determined then any peril which is not specifically excluded must be covered under the terms of the contract. This interpretation would have resulted in payment to Mr. Canter for his loss due to fire damage on his cotton shipment while en route from Mobile Bay to Philadelphia Harbor; however, this view did not prevail with majority opinion ruling against him instead.