In the case of Steamship Company v. Tugman, the Supreme Court of the United States was asked to decide whether a tugboat company was liable for damages caused by a collision between a steamship and a tugboat. The steamship company argued that the tugboat company was negligent in failing to properly navigate the tugboat, and thus was liable for the damages caused by the collision. The Supreme Court held that the tugboat company was liable for the damages caused by the collision. The Court found that the tugboat company had a duty to exercise reasonable care in navigating the tugboat, and that it had failed to do so. The Court also found that the tugboat company had failed to take proper precautions to avoid the collision, and that its negligence was the proximate cause of the damages. The Court concluded that the tugboat company was liable for the damages caused by the collision, and ordered it to pay the steamship company for the damages. This case established the principle that tugboat companies are liable for damages caused by their negligence in navigating their vessels.

In the case of Steamship Company v. Tugman, the Supreme Court was tasked with determining whether a tugboat company could be held liable for damages caused by its negligence in towing a steamer across an inland lake. The majority opinion found that since there was no contract between the two companies, and because it had been established that both parties were equally at fault for any damage done, neither party should be held responsible. Justice Field dissented from this ruling on the grounds that while both parties may have been negligent in some way or another, it did not absolve them from liability as they had voluntarily assumed responsibility when they agreed to enter into their arrangement without any formal agreement being made beforehand. He argued that even if one party is more culpable than another due to their own negligence or carelessness, they still cannot escape liability simply because of lack of contractual obligation; rather each must bear responsibility according to how much blame can be attributed directly to them individually.