In the case of Western Transit Company v. A.C. Leslie & Company, Limited (1916), the U.S Supreme Court was tasked with determining whether a shipper could be held liable for damages caused by an explosion on a vessel due to undeclared dangerous cargo. The defendant, A.C Leslie & Co., had shipped 500 barrels of aluminum powder without declaring its explosive nature to the plaintiff, Western Transit Co., who operated the vessel that transported it. An explosion occurred during transport causing significant damage and loss of life. The court ruled in favor of Western Transit Co., holding that shippers have a duty to inform carriers about any potential dangers associated with their goods being transported and failure to do so makes them liable for any resulting damages or losses.

In the dissenting opinion for Western Transit Company v. A.C. Leslie & Company, Limited, Justice Holmes disagreed with the majority's interpretation of maritime law and its application to this case. He argued that a ship owner should not be held liable for damages caused by an independent contractor unless it can be proven that they were negligent in their duty to ensure the safety of cargo on board their vessel. In his view, if a ship owner hires competent contractors who then fail in their duties due to negligence or incompetence, liability should rest with those contractors rather than being transferred back onto the ship owner as per traditional principles of tort law. This perspective was based on his belief that such an approach would better serve justice and fairness within commercial shipping operations.