The New York and Liverpool United States Mail Steamship Company (the appellants) appealed a decision in favor of Otis P. Rumball, the libellant. The case centered around the steamboat Pacific, her tackle, and other items owned by the appellants that were damaged due to an alleged negligent act on behalf of Rumball. The district court found in favor of Rumball but was reversed by the Circuit Court who held that there was no negligence on his part. On appeal to the Supreme Court, it affirmed this ruling as it determined that there had been no evidence presented showing any fault or neglect on behalf of Rumball which would have caused damage to these items belonging to the appellants.

In this case, the Supreme Court was asked to decide whether a contract between Otis P. Rumball and The New York and Liverpool United States Mail Steamship Company (the “Company”) had been breached by the Company when it failed to deliver goods that Rumball had purchased from them. The majority opinion found in favor of the Company, holding that since there was no evidence of bad faith on their part they were not liable for damages caused by their failure to perform under the contract. However, Justice Grier dissented from this decision arguing that even if there was no bad faith involved, an implied warranty existed in all contracts which required performance according to its terms or else liability would be imposed upon the breaching party regardless of any good intentions they may have had at the time. He argued further that such a warranty should be enforced as it is necessary for protecting parties who enter into contracts with each other and ensuring fairness within contractual relationships.