In the case of Maryland Dredging and Contracting Company v. United States (1915), the Supreme Court ruled in favor of the U.S government, upholding its right to terminate a contract with Maryland Dredging for dredging operations in Baltimore Harbor. The company had sued for damages after their contract was terminated due to alleged inefficiency and slow progress on their part. However, they argued that delays were caused by unforeseen obstructions which should have been disclosed by the government during contracting negotiations. The court found that while there may have been undisclosed obstructions, it did not absolve them from fulfilling contractual obligations within stipulated timeframes or justify compensation claims as such risks are inherent in dredging contracts. Furthermore, it was determined that even if these obstacles could be considered an excuse for delay under normal circumstances, this would only apply if work continued at maximum efficiency despite these challenges - something which wasn't demonstrated by Maryland Dredging.

In the dissenting opinion for Maryland Dredging and Contracting Company v. United States, it was argued that the majority's decision to hold a private company liable for damages caused by its dredging operations in navigable waters went beyond what Congress intended with the Rivers and Harbors Act of 1899. The dissent contended that this law was designed to regulate obstructions in navigable waterways, not to impose liability on companies performing authorized work under government contracts. They also pointed out that there were no specific provisions within the act addressing damage claims or providing any form of compensation mechanism for such instances. Thus, they believed it was inappropriate for courts to infer such liabilities from a statute where none explicitly existed. Furthermore, they expressed concern about potential negative impacts on future public works projects if contractors could be held financially responsible for unforeseen consequences resulting from their work.