The Barque Island City case was a dispute between claimants and libellants over the ownership of a ship. The claimants, Pierce et al., argued that they had purchased the vessel from its previous owner in good faith and with no knowledge of any prior claims to it. The libellants, Cromwell et al., argued that they were the rightful owners as their father had originally built and owned it before selling it without legal title or authority to do so. After hearing both sides' arguments, the Supreme Court ruled in favor of Pierce et al., finding that since they bought the ship in good faith without knowledge of any prior claim to it, their purchase was valid under maritime law.

In The Barque Island City, the Supreme Court was asked to decide whether a vessel and its cargo were liable for damages caused by an accident. The majority opinion held that the vessel and its cargo were not liable because they had been sold prior to the accident occurring. However, in his dissenting opinion Justice Grier argued that since the sale of the vessel had not yet been completed at the time of the accident, it should be considered as still belonging to those who owned it when it occurred. He further argued that even if there had been a valid sale prior to this incident taking place, any damage resulting from negligence on behalf of either party involved would still render them both responsible for any losses incurred due to their actions or omissions. In conclusion he stated that regardless of whether or not there was a valid sale before this event took place, all parties involved should be held accountable for any damages resulting from their own negligence or carelessness.