The Central Union Trust Company of New York v. Garvan case in 1920 revolved around the Trading with the Enemy Act during World War I. The Central Union Trust Company, acting as a trustee for German stockholders, sued Francis P. Garvan (the Alien Property Custodian) to prevent him from seizing their stocks under this act. The Supreme Court ruled in favor of Garvan, stating that the Alien Property Custodian had authority to seize enemy-owned property within U.S borders even if it was held by an American trustee on behalf of foreign beneficiaries. This ruling emphasized that national security interests took precedence over individual property rights during times of war and established a precedent for government seizure of enemy assets.

The dissenting opinion in the case of Central Union Trust Company of New York v. Garvan, argued that the Trading with the Enemy Act did not grant power to seize property held by an American citizen for a German company prior to America's entry into World War I. The justice believed that such interpretation was inconsistent with both the letter and spirit of law, which aimed at preventing aid to enemies during wartime rather than punishing past transactions. Furthermore, he contended that this seizure violated constitutional protections against taking private property without due process or just compensation as it retroactively penalized innocent business dealings conducted before war broke out between U.S.A and Germany.