The Steamboat Orleans, Henry Forsyth et al. Claimants appealed a case against Thomas Phoebus to the Supreme Court of the United States in 1837. The claimants argued that they were entitled to compensation for damages caused by an act of Congress which had granted exclusive navigation rights on certain rivers and lakes to Phoebus’ steamboats. The court found that while Congress did have authority under the Constitution to grant such exclusive privileges, it could not do so without providing just compensation for those who would be adversely affected by its action. As such, the court ruled in favor of the claimants and ordered payment from Phoebus for their losses due to his monopoly over these waterways.

In The Steamboat Orleans, Henry Forsyth et al. Claimants v. Thomas Phoebus, the Supreme Court was asked to decide whether a state court had jurisdiction over a case involving an admiralty claim for damages caused by negligence of the steamboat's crew and owners. Justice McLean wrote a dissenting opinion in which he argued that the federal courts should have exclusive jurisdiction over such cases because they involve maritime law and are therefore within federal authority under Article III of the Constitution. He further noted that Congress has not given states any power to hear these types of cases, so it would be improper for them to do so without express authorization from Congress or an act of legislation granting them this power. Finally, he concluded that if states were allowed to adjudicate admiralty claims then there would be no uniformity in decisions as each state could interpret maritime laws differently leading to confusion among litigants and inconsistent rulings across jurisdictions.