In the case of Luckenbach Steamship Company v. United States, 1929, the Supreme Court was tasked with determining whether or not a ship owner could be held liable for damages caused by a collision that occurred due to negligence on part of its crew. The steamship company argued that they should not be held responsible as they were unaware of their crew's incompetence and had no reason to suspect it. However, the court ruled against them stating that under maritime law, an employer is liable for any damage done through service regardless if they knew about their employee's incompetency or not. This ruling established an important precedent in maritime law holding employers accountable for actions taken by employees during service even without direct knowledge or involvement.

In the dissenting opinion for Luckenbach Steamship Company v. United States, it was argued that the majority's interpretation of maritime law and its application to this case were incorrect. The dissenters believed that the ship owner should not be held liable for damages caused by a fire on board unless negligence could be proven. They contended that there was no evidence showing any neglect or fault on part of the steamship company in maintaining or operating their vessel which led to the fire outbreak causing damage to cargo owned by others. Therefore, they disagreed with imposing liability without proof of negligence as it contradicted established principles of maritime law and general legal concepts regarding tort liability.