In the 1904 Supreme Court case, The Blackheath, a British ship named "The Blackheath" collided with an American vessel called "The Strabo" off the coast of New Jersey. The owners of The Strabo filed a lawsuit in U.S. federal court seeking damages for their lost cargo and ship repairs. However, they faced jurisdictional issues as the collision occurred on international waters and involved foreign entities. Despite this, the Supreme Court ruled that U.S courts had jurisdiction over such cases under maritime law if one or both vessels were found within U.S territorial waters after the incident occurred - which was true in this instance as both ships made it to port in Philadelphia post-collision.

In the dissenting opinion for THE BLACKHEATH, 1904 case, Justice Holmes disagreed with the majority's decision to hold a ship liable for damages caused by its cargo. He argued that liability should be based on negligence or fault rather than strict liability. According to him, it was unjust and against common law principles to impose such responsibility without proof of wrongdoing or neglect. The mere fact that an accident occurred due to the nature of goods carried does not automatically make the carrier culpable unless there is evidence showing they failed in their duty of care. Therefore, he believed that this ruling would set a dangerous precedent where carriers could be held accountable even when they have exercised all necessary precautions and diligence in handling their cargoes.