In the case of Ryan Stevedoring Co., Inc. v. Pan-Atlantic Steamship Corp., 1955, the U.S Supreme Court ruled in favor of Pan-Atlantic Steamship Corp. The dispute arose when a longshoreman employed by Ryan Stevedoring was injured while unloading cargo from one of Pan-Atlantic's ships due to improper stowage. The longshoreman sued and won damages from Pan-Atlantic, who then sought indemnity from Ryan Stevedoring on grounds that they had breached their warranty of workmanlike service which was implied in their stevedore contract with the ship company. Although there were no explicit terms regarding safety or indemnity in their agreement, it was held that such an obligation could be inferred as part of providing competent stevedore services under maritime law principles.

The dissenting opinion in the case of Ryan Stevedoring Co., Inc. v. Pan-Atlantic Steamship Corp. argued that the majority's decision to allow indemnification from a stevedore company to a ship owner for damages paid by the latter due to unsafe conditions created by the former, was not supported by law or policy considerations. The dissent contended that this ruling would undermine Congress' intent when it enacted workers’ compensation laws and could potentially lead to unjust results as employers might be discouraged from maintaining safe working conditions if they know they can shift their liability onto others through indemnity agreements. Furthermore, it was pointed out that such an arrangement may result in double recovery for injured employees who could collect both from their employer’s insurer under workers’ compensation and then again indirectly through increased wages resulting from higher insurance premiums paid by employers seeking coverage against potential indemnity claims.