In the case of Nyanza Steamship Company, Ltd. v. Jahncke Dry Dock No. 1 et al., the Supreme Court was asked to determine whether a ship owner could recover damages for loss of use and profits due to delays in repairing their vessel at a dry dock facility. The steamship company had contracted with Jahncke Dry Dock for repairs on its ship, but alleged that negligent workmanship caused significant delays which resulted in financial losses from being unable to use the ship during this time period. The court held that while it is generally true that consequential damages can be recovered when they are within reasonable contemplation of both parties at contract formation, such recovery is not applicable here because these types of losses were not foreseeable or explicitly included in their agreement. Therefore, even though there may have been negligence by Jahncke causing delay and subsequent loss of profits for Nyanza Steamship Company, no compensation was awarded as such potential losses should have been considered and stipulated within the original repair contract.

In the dissenting opinion for Nyanza Steamship Company, Ltd. v. Jahncke Dry Dock No. 1, et al., it was argued that the majority's decision to uphold a Louisiana statute allowing maritime liens on vessels for repairs and supplies in favor of local creditors over foreign ones contradicted established principles of international law and commerce. The dissenting justices believed that such preferential treatment undermined the uniformity necessary in maritime law across different jurisdictions and could potentially harm U.S trade relations with other countries by creating an unfair advantage for domestic businesses at the expense of foreign competitors. They also expressed concerns about potential retaliation from other nations which might enact similar laws disadvantaging American companies abroad as a response to this ruling.