The Stephen Morgan was a case heard by the United States Supreme Court in 1877. The case involved a dispute between the owners of the steamship Stephen Morgan and the owners of the steamship City of New York. The owners of the Stephen Morgan had filed a libel suit against the owners of the City of New York, claiming that the City of New York had negligently caused the Stephen Morgan to be damaged. The Supreme Court held that the owners of the Stephen Morgan had failed to prove that the City of New York had been negligent. The Court noted that the Stephen Morgan had been damaged by a collision with a third vessel, and that the City of New York had not been at fault for the collision. The Court also noted that the owners of the Stephen Morgan had failed to prove that the City of New York had been negligent in its navigation of the vessel. The Supreme Court thus held that the owners of the Stephen Morgan had failed to prove their case, and the libel suit was dismissed. This case established the principle that a party must prove negligence in order to recover damages in a libel suit.

In the case of The Stephen Morgan, a majority opinion was issued by the Supreme Court that held that a shipowner could not be liable for damages caused to another vessel due to its negligence. However, Justice Field dissented from this opinion and argued that under maritime law, an owner of a vessel is responsible for any damage it causes regardless of whether or not they were negligent. He reasoned that since vessels are inherently dangerous objects which can cause great harm if mishandled, owners should bear responsibility when their ships cause injury or destruction in order to protect other vessels on the water. Furthermore, he noted that such liability had been established in prior cases and thus should remain applicable here as well. In conclusion, Justice Field believed there was sufficient evidence to hold the owner accountable for damages resulting from his ship's actions and therefore disagreed with the majority ruling on this matter.