In the 1919 case of Liverpool, Brazil & River Plate Steam Navigation Company v. Brooklyn Eastern District Terminal, the U.S Supreme Court ruled on a dispute between two shipping companies over damages caused by negligence during unloading operations in New York Harbor. The plaintiff, Liverpool, Brazil & River Plate Steam Navigation Company (LBRP), argued that Brooklyn Eastern District Terminal (BEDT) was responsible for damage to its cargo because BEDT's employees had negligently handled it while transferring it from LBRP's ship to BEDT's lighter (a type of barge). In response, BEDT claimed that they were not liable as per their contract with LBRP which included an exemption clause relieving them from liability for any loss or damage unless proven negligent. However, the court found in favor of LBRP stating that such clauses could not protect a company from its own negligence and held BEDT liable for the damaged goods.

The dissenting opinion in the case of Liverpool, Brazil & River Plate Steam Navigation Company v. Brooklyn Eastern District Terminal argued that the majority's decision to hold the defendant liable for damages was incorrect. The dissenters believed that there was no negligence on part of the defendant and thus they should not be held responsible for any damage caused to plaintiff’s ship due to an unforeseen accident while it was being towed by a tugboat owned by defendants. They contended that this incident could have happened even if all precautions were taken, as maritime activities are inherently risky and unpredictable. Furthermore, they pointed out that both parties had agreed upon a contract which clearly stated that towing would be done at plaintiff’s risk - hence absolving defendants from liability unless gross negligence or willful misconduct could be proven – neither of which were evident in this case according to them.