In Sun Insurance Co. v. Kountz Line, the United States Supreme Court was asked to decide whether a contract of marine insurance was valid. The contract was between the Sun Insurance Company and the Kountz Line, a steamship company. The contract provided that the Sun Insurance Company would insure the Kountz Line against any losses incurred while transporting goods from one port to another. The Kountz Line was transporting goods from New York to San Francisco when the goods were lost at sea. The Sun Insurance Company refused to pay the claim, arguing that the contract was invalid because it had not been approved by the New York Insurance Department. The Kountz Line argued that the contract was valid because it had been approved by the California Insurance Department. The Supreme Court held that the contract was valid. The Court reasoned that the contract was valid under the laws of both New York and California, and that the approval of the California Insurance Department was sufficient to make the contract valid. The Court also held that the Sun Insurance Company was liable for the losses incurred by the Kountz Line.

Justice Field delivered the dissenting opinion in Sun Insurance Co. v. Kountz Line, arguing that the majority's decision was contrary to established precedent and would lead to an unjust result for the plaintiff. He argued that a contract of insurance is not subject to any implied condition or limitation unless it is found within its express terms, and since there was no such provision in this case, he believed that the insurer should be held liable for damages resulting from non-payment of premiums due under their policy agreement with Kountz Line. Furthermore, Justice Field noted that if insurers were allowed to avoid liability by simply failing to pay premiums when they become due without providing notice of cancellation as required by law then they could easily evade their obligations while still collecting premium payments from customers who are unaware of any change in status until after damage has occurred - something which he felt would be unfair and inequitable.