The U.S. Supreme Court case Washington-Southern Navigation Company v. Baltimore & Philadelphia Steamboat Company in 1923 revolved around a dispute over damages caused by a collision between vessels owned by the two companies. The steamship 'City of Camden,' belonging to the Baltimore & Philadelphia Steamboat Company, collided with the barge 'General French,' which was being towed by a tug owned by Washington-Southern Navigation Co., resulting in significant damage to both vessels. The main issue at hand was determining who should bear responsibility for the accident and thus pay for repairs or replacements as necessary. In its decision, the court ruled that both parties were equally at fault for failing to observe appropriate maritime rules designed to prevent such accidents from occurring - specifically, they had not maintained proper lookout nor taken adequate measures once risk of collision became apparent. As per established principles of admiralty law when both parties are found culpable ('in pari delicto'), liability was divided evenly between them; each company would have to bear half of total damages incurred due their mutual negligence.

In the dissenting opinion for Washington-Southern Navigation Company v. Baltimore & Philadelphia Steamboat Company, Justice Holmes disagreed with the majority's decision to hold the steamship company liable for damages caused by a collision between two vessels. He argued that both ships were equally at fault and should share responsibility for the accident. According to him, it was unfair to place all blame on one party when both had failed in their duties of care and caution while navigating through foggy conditions. The principle of equal division of damages under such circumstances is well-established maritime law, he noted, adding that this case did not present any exceptional reasons why this rule should be departed from.