The U.S. Supreme Court case Cities Service Co. et al. v. McGrath, Attorney General, Successor to the Alien Property Custodian (1951) revolved around a dispute over property seized during World War II under the Trading with the Enemy Act of 1917 by the Office of Alien Property Custodian (APC). The plaintiff was Cities Service Company and other oil companies who had contracts with German corporations before WWII; they claimed that their rights were violated when APC took control of royalties owed to them by these German firms without providing compensation or due process as required by Fifth Amendment's Takings Clause. In this case, however, it was determined that APC acted within its authority because those assets belonged to enemy aliens at war with America and thus could be confiscated for national security reasons without violating constitutional protections against uncompensated takings or deprivation of property without due process. However, in terms of whether plaintiffs should have been given an opportunity for judicial review before seizure occurred - which is also part of due process guarantees - court ruled in favor of plaintiffs stating that such right cannot be denied unless Congress explicitly says so which wasn't done here.

In the dissenting opinion for Cities Service Co. et al. v. McGrath, Justice Jackson argued that the majority's decision was a departure from established principles of law and equity regarding property rights during wartime. He contended that under international law, enemy-owned property within a nation's jurisdiction could be seized without compensation as an act of war but not alien-owned property unless it posed a threat to national security or was used in furtherance of enemy activities. In this case, he believed there was no evidence to suggest either scenario applied; hence seizure by the Alien Property Custodian exceeded his statutory authority and violated due process rights guaranteed by the Fifth Amendment. Furthermore, he criticized how courts were being asked to adjudicate on political matters which should be left to Congress and executive agencies with expertise in foreign affairs and national security issues.