The U.S. Supreme Court case Oxford Paper Company v. The Nidarholm in 1930 revolved around a dispute over damages caused by the sinking of a ship, The Nidarholm, which was carrying paper produced by the Oxford Paper Company. After being loaded with paper at Maine and heading to Buenos Aires, the vessel sank near Bermuda due to alleged unseaworthiness - an assertion that was later proven false in court. However, it was found that there had been negligence on part of those responsible for loading the cargo as they failed to properly secure it within the ship's hold causing shifting during transit leading to damage and eventual sinking of the vessel. As per maritime law principles (doctrine of general average), all parties involved including both ship owners and cargo owners are required to proportionally share any loss resulting from voluntary sacrifices made or expenses incurred for common safety during a voyage when faced with perilous situations such as this one.

In the dissenting opinion for Oxford Paper Company v. The Nidarholm, it was argued that the majority's decision to hold the ship liable for damages caused by a fire on board was incorrect. The dissenting justices believed that there wasn't sufficient evidence to prove negligence on part of the ship's crew or officers and thus, they shouldn't be held responsible for an accidental fire. They also disagreed with how liability was determined in this case, arguing that it should have been based on whether or not reasonable precautions were taken against such accidents rather than simply because damage occurred while goods were under their care. Furthermore, they contended that holding carriers strictly liable would lead to unjust outcomes as well as discourage maritime commerce due to increased risks and costs associated with potential liabilities.