The Cheshire was a case heard by the United States Supreme Court in 1865. The dispute arose from an incident involving two vessels, the Cheshire and the William Tell, which collided off of Cape Cod in 1863. The owners of both ships brought suit against each other for damages caused by the collision. In its decision, the court held that both parties were liable for their respective losses due to negligence on either side; however, it also found that neither party had acted with malice or intent to cause harm and thus should not be subject to punitive damages. Furthermore, since there was no clear evidence as to who was at fault for causing the accident itself, each vessel's owner would have to bear his own costs associated with repairing any damage incurred during this incident. Ultimately, this ruling established a precedent whereby liability is based upon negligence rather than intentionality when determining responsibility after maritime collisions occur between two vessels owned by different individuals or companies.

The dissenting opinion in The Cheshire, 1865 argued that the majority's decision was wrongfully based on a misinterpretation of the law. Specifically, they disagreed with the majority's conclusion that an insurance company could not be held liable for damages caused by a shipwreck due to an act of God. They argued that this interpretation failed to take into account other relevant legal principles and statutes which would have allowed for such liability. Furthermore, they contended that even if there were no applicable laws or precedents allowing for liability in this case, it should still be imposed as a matter of public policy since insurers are expected to bear some responsibility when their insureds suffer losses due to natural disasters beyond their control. Ultimately, the dissenters concluded that justice required holding insurers accountable under these circumstances and thus urged reversal of the majority’s ruling.