David Canter, appellant, brought a case against The American and Ocean Insurance Company of New York, appellee. He argued that the company had wrongfully refused to pay him an insurance claim for losses he suffered when his ship was damaged in transit. In response, the company claimed that they were not liable because the damage occurred due to negligence on behalf of Canter's crew members. After hearing both sides' arguments, the Supreme Court ruled in favor of The American and Ocean Insurance Company of New York. They found that since it was proven beyond reasonable doubt that there had been negligence on part of Canter's crew members which caused or contributed to his losses then he could not recover from them under this policy as per its terms and conditions. Thus, they dismissed his appeal with costs awarded to appellee

In the case of David Canter vs. The American and Ocean Insurance Company of New York, the appellant argued that a contract between himself and the appellee was valid despite not being in writing as required by law. He claimed that he had paid for insurance coverage from the company, but they refused to pay out when his ship sank due to an act of God. The majority opinion held that since there was no written agreement, it could not be enforced under existing laws; however Justice Story dissented from this ruling on two grounds: firstly, he argued that although verbal contracts were generally unenforceable at common law, equity courts would often intervene if one party had been unjustly enriched or suffered detriment through their reliance on another's promise; secondly he contended that even if such a contract did exist in this instance then it should still be binding because both parties knew about its existence and acted upon it accordingly. In conclusion Justice Story believed that justice demanded recognition of such agreements regardless of whether they complied with formal requirements or not.