In the case of Baltimore & Carolina Line, Inc. v. Redman in 1934, the U.S Supreme Court was tasked with determining whether a federal court had jurisdiction over a suit brought by an injured seaman against his employer for negligence under the Jones Act and unseaworthiness under general maritime law. The plaintiff, Redman, was employed as a cook on one of Baltimore & Carolina Line's vessels when he suffered injuries due to alleged negligence and unseaworthiness of the vessel. He filed suit in North Carolina state court which then transferred it to federal district court based on diversity jurisdiction. The defendant argued that since both parties were residents of Maryland at all relevant times, there was no diversity jurisdiction for this case to be heard in federal courts according to Article III Section 2 Clause 1 of US Constitution. However, Justice Cardozo delivered opinion stating that while ordinarily citizenship is determined at time action is commenced; if after removal from state court but before trial or decision thereon plaintiff becomes citizen of same State as defendant (as happened here), such change does not oust District Court's acquired jurisdiction. Thus ruling favored Redman allowing him proceed with his claims against his employer within Federal Courts despite lack of diversity between parties' states residence during course litigation.

In the dissenting opinion for Baltimore & Carolina Line, Inc. v. Redman, it was argued that the majority's decision to hold a steamship company liable for injuries sustained by an employee during his off-duty hours on board went beyond what is stipulated in maritime law and federal statutes. The dissent emphasized that while employers should be responsible for providing safe working conditions and accommodations, they should not be held accountable for accidents or injuries occurring outside of work-related activities or duties. It was further contended that this ruling could set a dangerous precedent where companies might become overly cautious about hiring workers due to potential liability issues, which would ultimately harm employment opportunities within the industry.