In the case of Ryan Stevedoring Co., Inc. v. Panatlantic Steamship Corp., the Supreme Court ruled in favor of Panatlantic, affirming that a stevedoring company (a company responsible for loading and unloading ships) could be held liable for injuries sustained by its employees due to unsafe conditions created by their own negligence. The court found that Ryan Stevedoring had breached its warranty of workmanlike service when it improperly stowed cargo on one of Panatlantic's vessels, leading to an injury suffered by one of its workers. This breach made them liable under the Longshoremen's and Harbor Workers' Compensation Act, which provides compensation for injured maritime workers but also allows ship owners to seek indemnity from parties whose negligence caused such injuries.

In the dissenting opinion for Ryan Stevedoring Co., Inc. v. Panatlantic Steamship Corp., it was argued that the majority's decision to hold a stevedoring company liable for damages suffered by a ship owner due to improper stowage of cargo, despite no contractual obligation between them, set an alarming precedent. The dissent contended that this ruling effectively allowed any third party who suffers damage as a result of another's negligence to seek compensation directly from the negligent party, even if they had no direct relationship or contract with each other. This interpretation could potentially open up limitless possibilities for litigation and disrupt established principles of tort law which traditionally require some form of contractual relationship or duty owed between parties in order for one to be held liable for harm caused to another.