The U.S. Supreme Court case United States v. Norwegian Barque Thekla in 1924 revolved around the issue of whether or not a foreign vessel could be held liable for damages caused to a U.S. government-owned cable during peacetime, under international law and domestic maritime law. The Norwegian ship "Thekla" had accidentally severed an underwater telegraph cable owned by the U.S., causing significant damage and disruption of communication services. In its decision, the court ruled that even though it was unintentional, such actions were still considered negligent and thus punishable under both international law and American maritime laws which protect submarine cables from damage by ships' anchors or other equipment unless there is absolute necessity (e.g., saving lives). Therefore, foreign vessels can indeed be held accountable for their negligence resulting in harm to American property within territorial waters.

In the dissenting opinion for United States v. Norwegian Barque Thekla, Justice Holmes disagreed with the majority's decision to hold a neutral vessel liable for damages caused by mines laid by a belligerent in international waters during wartime. He argued that such an act was not illegal under international law and therefore should not be subject to liability under domestic law either. Furthermore, he contended that the principle of neutrality protects neutral vessels from being held responsible for acts committed by belligerents unless they actively assist or participate in those acts. In this case, there was no evidence suggesting that Thekla had done so; hence it should not be held accountable for any damage resulting from its unintentional contact with the mine.