In the 1921 case of Carlisle Packing Company v. Sandanger, the United States Supreme Court ruled in favor of Carlisle Packing Company. The dispute arose when a group of fishermen led by Sandanger sued for damages after their fishing nets were destroyed by a steamship owned and operated by the packing company. They argued that under maritime law, they had exclusive rights to fish in certain areas and that any damage caused to their equipment was liable for compensation. However, the court disagreed with this interpretation of maritime law stating it did not grant exclusive fishing rights but merely provided regulations on how fisheries should operate within U.S waters. Therefore, as long as ships navigated carefully and didn't intentionally cause harm or act negligently towards these fisheries' property (in this case - nets), they could not be held responsible for incidental damages occurring during normal navigation activities.

In the dissenting opinion for Carlisle Packing Company v. Sandanger, Justice McReynolds disagreed with the majority's interpretation of maritime law and its application to this case. He argued that under international maritime law, a ship owner is not liable for damages caused by an unseaworthy vessel if they had no knowledge or reason to know about the vessel's condition before it set sail. In this case, he believed there was insufficient evidence to prove that Carlisle Packing Company knew or should have known about their ship’s defective condition prior to its voyage. Therefore, in his view, they should not be held responsible for injuries sustained by Sandanger during his employment on board their fishing schooner due to a broken mast which made the boat unseaworthy from start of journey.