In the 1916 case of Clyde Steamship Company v. Walker, the United States Supreme Court ruled in favor of Clyde Steamship Company. The dispute arose when a passenger on one of their ships was injured due to negligence by an employee who had been hired through an independent contractor. The court held that under maritime law, ship owners are not liable for injuries caused by employees they did not directly hire or control. This ruling established a precedent that ship owners could avoid liability for negligent acts committed by workers employed through third-party contractors if they can prove lack of direct supervision and control over those workers' actions.

In the dissenting opinion for Clyde Steamship Company v. Walker, Justice Holmes disagreed with the majority's decision to hold a steamship company liable for damages caused by its vessel during a storm. He argued that it was unreasonable to expect the ship's crew to predict and prevent all possible damage in such unpredictable circumstances. According to him, there should be some level of tolerance given towards unavoidable accidents that occur due to natural disasters or other unforeseen events beyond human control. The justice believed that this ruling could set an unfair precedent where companies are held responsible for uncontrollable factors, which would ultimately discourage businesses from taking necessary risks or making investments out of fear of potential liability.