In the case of Calero-Toledo et al. v. Pearson Yacht Leasing Co., 1973, the U.S Supreme Court upheld a Puerto Rican law that allowed for immediate seizure of property used in illegal activities without prior notice or hearing. The case arose when a yacht leased by Pearson Yacht Leasing Co was seized by Puerto Rican authorities after they discovered marijuana on board during an inspection while it was docked at San Juan Harbor. The company argued that this violated their rights to due process under the Fourteenth Amendment as they were not involved in nor aware of any illicit activity involving their property and had no opportunity to contest its seizure before it occurred. However, the court ruled 6-3 in favor of Calero-Toledo (the Administrator of Justice for Puerto Rico), stating that such laws served significant government interests related to halting drug trafficking and other criminal enterprises, which outweighed potential due process concerns.

In the dissenting opinion for Calero-Toledo et al. v. Pearson Yacht Leasing Co., Justice William Rehnquist argued that the majority's decision was a departure from established legal principles regarding seizure of property without prior notice or hearing. He contended that such an action should only be permissible in extraordinary situations where there is an immediate danger to public health, safety, or welfare - conditions not met in this case. The yacht was seized under Puerto Rico's Controlled Substances Act because it had been used to transport marijuana; however, no one associated with Pearson Yacht Leasing Company had any knowledge of this illegal activity. Therefore, according to Justice Rehnquist, seizing their property without giving them a chance to present their side violated due process rights guaranteed by the Constitution.