The U.S. Supreme Court case Black Diamond Steamship Corp. v. Robert Stewart & Sons, Ltd., et al., 1948 revolved around a dispute over damages caused to the SS Black Osprey, a ship owned by the plaintiff (Black Diamond Steamship Corp.), during World War II while it was under charter to the British Ministry of War Transport and in possession of Robert Stewart & Sons Ltd.. The main issue at hand was whether or not an English law limiting liability for maritime accidents applied in this situation; if so, it would significantly reduce the amount owed by defendants compared to what would be due under American law. The court held that since both parties had agreed upon English jurisdiction when entering into their contract, they were bound by its laws - including those limiting liability for maritime accidents. Therefore, despite being heard in an American court with potentially different outcomes under domestic legislation, this case was decided according to foreign legal principles as per contractual agreement between involved entities.

The dissenting opinion in the case of Black Diamond Steamship Corp. v. Robert Stewart & Sons, Ltd., et al., argued that the majority's decision to allow a ship owner to recover for damages caused by unseaworthiness was inconsistent with established maritime law principles and precedent. The dissent contended that under traditional admiralty law, a ship owner is not entitled to indemnity from a charterer for losses resulting from the condition of the vessel unless there is an express agreement stating otherwise or if negligence on part of charterer can be proven. They believed this principle should apply even when damage occurs during loading operations performed by independent contractors hired by the charterers as it was in this case. Therefore, they disagreed with majority’s view that such liability could arise implicitly out of general contractual obligations between parties involved.