The U.S. Supreme Court case Weyerhaeuser Steamship Co. v. United States in 1962 revolved around the issue of whether or not a ship owner could recover damages from the government for repairs made to its vessel after it was damaged due to negligence on part of a public works contractor hired by the government. The court ruled that under Section 3 of the Suits in Admiralty Act, which allows suits against the United States for damage caused by any publicly owned merchant vessel, and under maritime law principles, a shipowner may recover half damages when both parties are at fault (the divided damages rule). However, this does not apply if one party is an independent contractor rather than an agent or employee of the other party involved in causing collision damage. Therefore, since there was no agency relationship between Government and Morrison-Knudsen Company who negligently operated dredge causing collision with petitioner's steamship; hence recovery over against Government cannot be had.

The dissenting opinion in the case of Weyerhaeuser Steamship Co. v. United States argued that the majority's decision to allow recovery for damages caused by a negligent act committed during war operations was inconsistent with previous rulings and principles established by Congress. The dissent pointed out that under the Suits in Admiralty Act, private parties could sue the government only "in cases where if such vessel were privately owned or operated...a proceeding in admiralty could be maintained." However, they contended that no such suit would have been possible against a private party because maritime law traditionally exempts vessels engaged in military service from liability for damage done while performing those services. Therefore, it was inappropriate to hold the government liable under these circumstances. They also expressed concern about potential negative implications this ruling might have on future wartime operations.