In the case of International Paper Company v. The Schooner Gracie D. Chambers (1918), the U.S Supreme Court ruled in favor of the International Paper Company, overturning a lower court's decision that had held them responsible for damages to The Schooner Gracie D. Chambers ship due to an alleged obstruction in navigable waters caused by their floating logs operation on Lake Champlain, New York. In its ruling, the Supreme Court stated that although it is illegal under federal law to obstruct navigable waters without Congressional approval, this did not apply as there was no evidence proving that such operations were indeed causing obstructions or hindrances to navigation and thus could be considered unlawful per se under federal law.

The dissenting opinion in the case of International Paper Company v. The Schooner Gracie D. Chambers argued that the majority's decision was inconsistent with established maritime law principles and failed to adequately consider the circumstances surrounding the collision between two vessels, which resulted in damage to a third party's property (a wharf). They contended that both vessels were equally at fault for not taking adequate precautions to avoid colliding with each other, as well as for failing to control their movements after they became entangled. As such, they believed it was unjust for only one vessel (the schooner) to be held liable for all damages incurred by a third party due solely because it happened to drift into and damage said party’s property while disentangling itself from another ship. Instead, liability should have been apportioned based on each vessel's degree of fault or negligence contributing towards causing harm/damage.