In the 1920 case of T. M. Duche & Sons, Limited v. American Schooner John Twohy, the U.S Supreme Court examined a dispute over damages incurred during maritime transport of goods between England and America in World War I times. The British company T.M Duche & Sons had contracted with the owners of an American schooner to ship beans from England to New York City but due to war-related delays and detours, including being forced by a British cruiser into Halifax for examination before proceeding on its voyage, the shipment arrived late and damaged in New York City causing financial losses for Duche & Sons. The main issue was whether or not these war-related risks were foreseeable at contract time and thus should have been factored into their agreement or if they constituted force majeure events that would excuse liability for non-performance under English law which governed their contract. The court held that such risks were indeed foreseeable given wartime conditions when they entered into this shipping contract hence did not constitute force majeure events excusing performance under English law as argued by defendants' counsel who also sought refuge behind certain clauses in their bill of lading limiting liability against perils of sea among other things. Therefore it affirmed lower courts' decisions holding defendants liable for plaintiffs’ losses resulting from delayed delivery caused by said diversion without considering any limitation on recovery provided in bill's exceptions clause since those didn't cover this particular risk either according to them.

In the dissenting opinion for T. M. Duche & Sons, Limited v. American Schooner John Twohy, Justice McReynolds disagreed with the majority's decision to hold a ship liable for damages caused by its cargo of limes that had been improperly stowed and subsequently damaged other goods on board during transit. He argued that it was not fair or reasonable to place responsibility on the ship owner when they were not involved in loading or stowing the cargo; these tasks were performed by independent stevedores hired by shippers who should bear liability instead. Moreover, he pointed out there was no evidence suggesting negligence from part of vessel’s crew members regarding this matter and thus held them blameless as well.