In the case of Federal Marine Terminals, Inc. v. Burnside Shipping Co., Ltd., 1968, the Supreme Court was asked to determine whether a stevedoring company could be held liable for damages caused by its negligence in loading cargo onto a ship owned by another party. The court ruled that under maritime law, a stevedore (a company responsible for loading and unloading ships) can indeed be held liable for any damage resulting from their negligent actions during the course of their work. The decision arose from an incident where Federal Marine Terminals had negligently loaded steel onto Burnside Shipping's vessel which resulted in significant damage to the ship's hull when it shifted during transit. Despite arguments that liability should not extend beyond contractual obligations or insurance coverage limits, Justice Fortas delivered the opinion of unanimous court stating that such limitations were irrelevant as they did not absolve parties from responsibility arising due to their own negligence.

The dissenting opinion in the case of Federal Marine Terminals, Inc. v. Burnside Shipping Co., Ltd., argued that the majority's decision to hold a stevedoring company liable for damages caused by its own negligence was inconsistent with both maritime law and precedent. The dissent contended that under traditional admiralty principles, a shipowner is responsible for any damage resulting from unseaworthiness, regardless of who was at fault. By shifting liability onto the stevedore, they believed it would disrupt established practices within the shipping industry and potentially lead to an increase in litigation as parties dispute over responsibility for accidents or damages on board ships. They also expressed concern about how this ruling could affect insurance rates and contracts between shipowners and stevedores moving forward.