The U.S. Supreme Court case "The Germanic" in 1904 revolved around a collision between two ships, The Germanic and The Mohegan, off the coast of New Jersey. At issue was whether or not the owners of The Germanic were liable for damages to cargo on board The Mohegan at the time of their accident. In this maritime law case, it was determined that although both vessels had been negligent leading up to their collision - with neither ship maintaining proper lookout nor adhering strictly to sailing rules - only one (The Mohegan) could be held responsible for damage done after impact due its failure to take appropriate action post-collision. This ruling established an important precedent in admiralty law: when both parties are found guilty of negligence causing a collision but only one is guilty concerning subsequent events resulting from said collision, then that party alone must bear full responsibility for all ensuing damages.

In the dissenting opinion for The Germanic case in 1904, Justice Oliver Wendell Holmes Jr. disagreed with the majority's decision to hold a ship liable for damages caused by its wake. He argued that there was no negligence on part of the ship as it had followed all necessary precautions and regulations while navigating through New York Harbor. According to him, any damage caused due to the swell or wave created by a passing vessel is an inevitable consequence of navigation and should not be considered as grounds for liability unless there is clear evidence of fault or negligence from the vessel's side. This view challenged traditional maritime law which held ships responsible for damages caused by their wakes regardless of whether they were at fault or not.