In the 1905 case of Cincinnati, Portsmouth, Big Sandy and Pomeroy Packet Company v. Bay, the U.S Supreme Court ruled in favor of the plaintiff (Bay), a deckhand who was injured while working on one of defendant's steamboats. The court held that under maritime law, an employer is liable for injuries sustained by its employees due to negligence or unseaworthiness of their vessels. In this case, it was found that the injury occurred because a wire cable used to secure freight had been improperly coiled causing it to snap back when released and strike Bay in his eye leading to permanent blindness. The company argued they were not responsible as they did not have knowledge about improper coiling but court rejected this argument stating employers are expected to ensure safety measures at workplace irrespective of their personal knowledge about specific hazards.

In the dissenting opinion for Cincinnati, Portsmouth, Big Sandy and Pomeroy Packet Company v. Bay (1905), Justice Holmes disagreed with the majority's ruling that a steamboat company could be held liable for injuries sustained by an employee who was not on duty at the time of his injury. He argued that there should be no liability unless it can be shown that the employer failed to provide a safe place to work or was otherwise negligent in its duties towards employees. In this case, he believed there was no evidence of negligence on part of the steamboat company as they had provided proper accommodation and safety measures were in place. The accident occurred due to unforeseen circumstances which were beyond control of anyone involved including both parties i.e., employer and employee alike.