In the case of Pacific Coast Steamship Company v. United States (1902), the U.S Supreme Court ruled in favor of the government, upholding a penalty imposed on the steamship company for violating immigration laws. The company had transported Chinese laborers from one US port to another without obtaining necessary certificates confirming their legal status as required by law at that time. The court held that even though these laborers were not immigrants but rather people already residing in America, they still fell under provisions of an 1894 Act which mandated such certification for any Chinese person being transported within American territory. Therefore, it was deemed irrelevant whether or not these individuals were entering or exiting America; what mattered was their transportation itself and failure to comply with statutory requirements.

In the dissenting opinion for Pacific Coast Steamship Company v. United States, it was argued that the majority's interpretation of the law was incorrect and overly broad. The dissent disagreed with the majority's view that a ship could be held liable for damages caused by its wake without any proof of negligence or wrongdoing on part of its crew or operators. They contended this ruling would unfairly penalize ships merely because they are large and capable of creating substantial wakes, even when operated responsibly and within established guidelines. Furthermore, they expressed concern about potential negative impacts on commerce due to increased liability risks for shipping companies under such an expansive interpretation of maritime law.