The U.S. Supreme Court case International Navigation Company v. Farr and Bailey Manufacturing Company in 1900 revolved around a dispute over the payment of duties on imported goods. The International Navigation Company had transported certain goods from England to New York for the Farr and Bailey Manufacturing Company, which were subject to import duties under U.S law at that time. However, due to an error by customs officials, these goods were not assessed any duty upon arrival in New York. When this mistake was later discovered, the government sought to recover the unpaid duties from both parties involved - importer (Farr & Bailey) and carrier (International Navigation). The key issue before the court was whether or not carriers could be held liable for such unpaid import duties along with importers. In its decision, the Supreme Court ruled that while carriers may sometimes be responsible for ensuring compliance with customs regulations during transport of imported goods; they cannot be held financially liable for errors made by customs officials regarding assessment of import duties after those goods have been delivered into their custody.

The dissenting opinion in the case of International Navigation Company v. Farr and Bailey Manufacturing Company argued that the majority's decision was not consistent with established principles of maritime law. The dissenting justices believed that a ship owner should be held liable for damages caused by defective equipment, even if they were unaware of the defect at the time. They contended that it is part of a ship owner's duty to ensure their vessel is seaworthy and safe for use, which includes maintaining all equipment on board. If any piece of this equipment causes damage due to being faulty or improperly maintained, then responsibility should fall upon them regardless whether they knew about its condition beforehand or not. This view contrasts sharply with the majority ruling which absolved International Navigation Company from liability because they had no knowledge about their steamship’s defective donkey engine causing an explosion.