In the case of Inland and Seaboard Coasting Company v. Tolson (1890), the U.S Supreme Court ruled on a dispute involving maritime law and insurance claims. The Inland and Seaboard Coasting Company had insured their steamship, "The Three Rivers," but when it was damaged in an accident, they were denied coverage by their insurers due to alleged misrepresentation about the ship's value. The company sued for breach of contract. However, the court found that there had been no fraudulent intent or material misrepresentation on part of the company while insuring its vessel; rather, both parties involved made honest mistakes regarding valuation at time of policy issuance which did not affect risk assumption by insurer nor premium charged. Therefore, it held that under federal maritime law - which governs contracts for marine insurance - such innocent errors do not void policies unless they significantly alter risk assumed by insurer or are expressly stipulated as grounds for cancellation within policy terms itself.

The dissenting opinion in the case of Inland and Seaboard Coasting Company v. Tolson argued that the majority's decision to uphold a North Carolina law imposing taxes on ships registered outside of the state, but doing business within its waters, was unconstitutional. The dissent contended that this ruling violated both the Commerce Clause and Due Process Clause of the Constitution. They believed it was an undue burden on interstate commerce as it discriminated against out-of-state businesses by taxing them more heavily than local ones. Furthermore, they maintained that such taxation without representation infringed upon due process rights because these companies had no political voice or influence in North Carolina despite being subject to its laws and regulations.