Purchased for use in the maritime fur trade on the Pacific Northwest coast, Fair American sailed from Macau to Nootka Sound on Vancouver Island in 1789.

Her gunwale was not a foot higher than that of the double canoes of this country [Hawaii], and being navigated and protected by five persons only under the command of an inexperienced young man, she became not less a desirable acquisition to Tamaahmootoo than a prize of easy attainment".

[4] One of Vancouver's officers, after seeing the Fair American, wrote that he was "Stuck with Surprize, at so small a Vessel having been employ'd on such a Commercial pursuit as she had been, and to have travers'd Such an immense tract of Boisterous Ocean as she had done."

Metcalfe decided to sail to the Pacific Northwest Coast to acquire sea otter furs before returning to China to buy tea.

Thomas continued down the Pacific Northwest Coast, acquiring some furs through trade with some Tlingit and Haida villages, before arriving at Nootka Sound.

[10] According to Esteban José Martínez, the Spanish commander at Nootka Sound, Thomas Metcalfe's Fair American arrived with "her mast sprung and her sails split", and that the schooner had no provisions left but only "some casks of water and some 65 otter skins".

As increasing numbers of trading ships visited Nootka Sound, Spain decided to assert its claim to the Pacific Northwest Coast.

In early 1789 a Spanish force under Martínez arrived and established Santa Cruz de Nuca and Fort San Miguel.

[11] Thomas Metcalfe sailed Fair American into Nootka Sound on 20 October 1789, whereupon the vessel and crew were promptly seized and arrested.

The Spanish viceroy, Juan Vicente de Güemes, 2nd Count of Revillagigedo, was worried about the possibility of international crisis sparked by the seizure of three British merchant ships as well as the Fair American.

[12] Reaching the Island of Hawaiʻi, Thomas Metcalfe brought Fair American into Kawaihae Bay, where shortly before his father Simon had flogged Chief Kameʻeiamoku, who had then vowed revenge upon the next ship.

[13] On 16 March 1790, Kameʻeiamoku's men easily captured the Fair American and killed everyone except Isaac Davis, who was badly injured but survived.

At the time no one was aware of the family relation between the captain of the Fair American and Simon Metcalfe, whose Eleanora was anchored at Kealakekua Bay, about 30 miles (50 km) away.

[21][18] In retaliation for the invasion of Maui Kahekili II and his brother Kaʻeokulani led a fleet of 700 war canoes in an attack on the north coast of Hawaii.