The Lady Franklin was a case heard by the United States Supreme Court in 1869. The case involved a dispute between the owners of the Lady Franklin, a British vessel, and the owners of the American vessel, the William Tell. The dispute arose when the William Tell collided with the Lady Franklin, causing damage to the Lady Franklin. The owners of the Lady Franklin sued the owners of the William Tell for damages. The Supreme Court held that the owners of the Lady Franklin were entitled to damages for the collision. The Court reasoned that the collision was caused by the negligence of the William Tell's captain, and that the owners of the Lady Franklin were not at fault. The Court also held that the owners of the Lady Franklin were entitled to damages for the loss of the vessel, as well as for the loss of cargo and other expenses incurred as a result of the collision. The Court's decision in The Lady Franklin established the principle that a vessel's owners are entitled to damages for a collision caused by the negligence of another vessel's captain. This principle has been applied in numerous cases since then, and is still used today.

In The Lady Franklin, the Supreme Court was tasked with deciding whether a vessel's master had the authority to sell goods on board without the consent of its owners. In a 5-4 decision, Justice Field delivered an opinion dissenting from that of the majority. He argued that while it is true that masters have traditionally been given broad discretion in managing their vessels and cargo, this should not be extended to include selling off part or all of either without explicit permission from those who own them. Furthermore, he noted that such sales are often made under duress and thus cannot be considered voluntary transactions; as such they should not be legally binding even if accepted by both parties at face value. Finally, he concluded by stating his belief that allowing captains to make these kinds of decisions would lead to potential abuse and exploitation which could ultimately harm innocent third parties involved in maritime commerce.