The L.P. Dayton was a Supreme Court case that dealt with the issue of whether a vessel was liable for damages caused by a collision with another vessel. The case arose when the L.P. Dayton, a steamboat, collided with the steamer J.H. Devereux in the Mississippi River. The Devereux was damaged in the collision, and the owners of the Devereux sued the owners of the L.P. Dayton for damages. The Supreme Court held that the L.P. Dayton was liable for the damages caused by the collision. The Court reasoned that the L.P. Dayton was at fault for the collision because it had failed to keep a proper lookout and had failed to take proper precautions to avoid the collision. The Court also held that the L.P. Dayton was liable for the damages even though the Devereux had also been negligent in the collision. The Court's decision in this case established the principle that a vessel is liable for damages caused by a collision even if the other vessel was also negligent. This principle has been applied in many subsequent cases involving collisions between vessels.

In the case of The L.P. Dayton, a majority opinion was issued by the Supreme Court that held that when a vessel is sold in accordance with an order from a court of competent jurisdiction, it passes to the purchaser free and clear of any liens or encumbrances existing prior to such sale. In his dissenting opinion, Justice Field argued that this decision would lead to injustice for creditors who had not been given notice of the sale and thus could not protect their interests at auction. He further noted that while courts have authority over vessels within their jurisdiction, they do not possess unlimited power; rather they must act according to established principles which are designed to ensure fairness and justice for all parties involved in litigation proceedings involving maritime law matters. Furthermore, he argued that if courts were allowed unfettered discretion in ordering sales without regard for creditor rights then those creditors would be deprived due process protections guaranteed under both state and federal laws as well as constitutional guarantees against deprivation of property without due process.