In the case of Hamburg American Steamship Company v. Grube (1904), the U.S. Supreme Court ruled in favor of the defendant, Mr. Grube, a passenger who was injured on one of Hamburg's ships due to negligence by its employees. The company argued that it should not be held liable for injuries caused by its employees' negligence because their contract with passengers included an exemption clause absolving them from such liability. However, this argument was rejected by the court which found that such clauses were invalid under federal maritime law and common law principles as they would essentially allow companies to evade responsibility for harm caused through their own fault or neglect. The ruling emphasized that carriers cannot contract away their duty of care towards passengers and must ensure safe transportation conditions aboard their vessels; if they fail in this duty due to negligence or misconduct on part of themselves or any person whose services they employ, then they are responsible for resulting damages regardless whether there is an exemption clause present in contracts with passengers.

In the dissenting opinion for Hamburg American Steamship Company v. Grube, it was argued that the plaintiff should not be held responsible for injuries sustained by a passenger due to an accident on board their ship. The dissenting justices believed that there was insufficient evidence to prove negligence on behalf of the steamship company and therefore, they should not be liable for damages. They contended that accidents can occur without anyone being at fault and in this case, it seemed as though no one could have foreseen or prevented what happened. Therefore, according to them, holding the company accountable would set a dangerous precedent where businesses are forced to pay compensation even when they are not negligent in any way.