The Venice was a ship owned by the United States that had been captured by Confederate forces during the Civil War. The Supreme Court heard arguments in this case to determine whether or not the vessel should be returned to its original owners, as it had been taken without any legal justification. After considering both sides of the argument, they ultimately ruled in favor of returning The Venice back to its rightful owners. This decision established an important precedent for future cases involving property rights and maritime law, affirming that vessels seized unlawfully must be restored to their lawful owner upon demand regardless of which side is victorious in war. Furthermore, it also set forth a standard for what constitutes just compensation when such seizures occur; namely that damages must include all costs incurred from loss or destruction due to unlawful capture and detention plus interest on those losses at six percent per annum until restitution is made.

In The Venice, the Supreme Court was asked to decide whether a vessel that had been seized by Confederate forces during the Civil War could be considered an enemy vessel. In a 5-4 decision, the majority held that it could not because there was no evidence of any hostile act or intent on behalf of its owners. Justice Field dissented from this opinion and argued that since the vessel had been captured by Confederate forces in open war, it should be treated as an enemy ship regardless of its owner's intentions or actions. He further noted that if vessels were allowed to escape capture simply due to their owners' lack of hostility towards either side in a conflict then such vessels would become "a safe refuge for all who may desire to avoid danger." As such, he concluded that Congress must have intended for captured ships like The Venice to be treated as enemies and thus subject to seizure under international law.