In the case of International Milling Co. v. Columbia Transportation Co., the U.S Supreme Court was tasked with determining whether a ship owner could limit their liability for damages caused by negligence to the value of their vessel and its freight, under federal maritime law. The dispute arose when grain owned by International Milling Company was damaged during transport on a ship owned by Columbia Transportation Company due to alleged negligence in stowage. The court ruled that while federal maritime law does allow ship owners to limit their liability for damage or loss resulting from navigation errors, it does not extend this protection to cover losses stemming from negligent cargo handling practices such as improper stowage.

In the dissenting opinion for International Milling Co. v. Columbia Transportation Co., Justice Cardozo disagreed with the majority's interpretation of maritime law and its application to this case. He argued that a ship owner should not be held liable for damages caused by an independent contractor unless it can be proven that they were negligent in their selection or supervision of said contractor, which was not demonstrated here. The majority ruling, he believed, expanded liability beyond reasonable limits and could potentially discourage ship owners from hiring contractors due to fear of being held responsible for any mistakes made by them - even if they had no control over these actions themselves. This would ultimately harm both parties involved: contractors who lose potential work opportunities and ship owners who are forced to take on tasks outside their area of expertise instead of outsourcing them to professionals.