The Henkels v. Sutherland case in 1925 revolved around the seizure of property owned by a German national during World War I under the Trading with the Enemy Act. The Alien Property Custodian, an office established to manage such properties, sold off assets belonging to Albert Amsinck, a German citizen living in New York who had died intestate (without leaving a will). His relatives contested this action and sought recovery of their inheritance from his estate. Stanley F. Henkels was appointed as administrator for Amsinck's estate and filed suit against Thomas W. Miller, then serving as Alien Property Custodian along with other defendants including George E.Sutherland on behalf of Amsinck’s heirs. The Supreme Court ruled that while wartime legislation did allow for confiscation of enemy-owned property within U.S borders; it did not extend to personal effects or real estate held by deceased individuals at war's end if no will existed directing its disposition towards enemy countries or nationals thereof. Therefore, since there was no evidence suggesting that any part of Amsinck’s wealth would go back to Germany or benefit it indirectly; his next-of-kin were entitled to inherit according to state law rather than having their claims dismissed due federal wartime regulations.

In the dissenting opinion for Henkels v. Sutherland, Alien Property Custodian, et al., Justice Holmes argued that the majority's decision was based on a misinterpretation of the Trading with Enemy Act. He contended that Congress intended to give broad powers to the President and his designees during times of war, including control over enemy property within U.S. borders. The justice believed this power extended to seizing assets held by American citizens if those assets were originally owned or controlled by enemies at war with America - even if these transactions occurred before America entered into conflict. In his view, it was irrelevant whether such transfers were made in good faith or without knowledge of their original ownership; what mattered was preventing resources from potentially aiding an enemy nation during wartime.