In the 1924 case of Standard Oil Company of New Jersey v. The United States, the Supreme Court ruled that a ship owner is not liable for damages caused by its vessel if it can prove that it took all necessary precautions to prevent such an incident from occurring. This decision came after the steamship Llama, owned by Standard Oil, collided with another ship in a dense fog off the coast of Virginia. The other ship was damaged and sank as a result; however, evidence showed that both ships were moving at reduced speeds due to poor visibility and had been sounding their fog signals regularly prior to collision. Therefore, despite being found responsible for causing damage through negligence or fault under maritime law (the "Pennsylvania Rule"), Standard Oil successfully argued they had taken every reasonable precaution possible given circumstances beyond their control - namely weather conditions - thus absolving them from liability.

In the dissenting opinion of the Standard Oil Company of New Jersey v. The United States case in 1924, it was argued that the majority's decision to hold Standard Oil liable for damages caused by its steamship Llama during World War I was incorrect. This argument hinged on two main points: first, that there had been no negligence or fault on part of the ship's crew; and secondly, that even if there were any such faults, they should be excused due to war conditions at sea which made adherence to normal standards impracticable. It was also contended that a vessel under charter control by government cannot be held responsible for actions taken under orders from military authorities. Furthermore, it was pointed out that this ruling could potentially discourage private companies from leasing their vessels to government during times of war due to fear of liability claims.