In the case of Lloyd Sabaudo Societa Anonima Per Azioni v. Elting, Collector of Customs (1932), the U.S Supreme Court ruled in favor of Elting, upholding a fine imposed on an Italian steamship company for violating immigration laws. The company had transported two immigrants to New York who did not have valid visas and were subsequently denied entry into the United States. The ship was fined $200 per immigrant under Section 16 of the Immigration Act which penalizes transportation companies that bring ineligible aliens into America without proper documentation or visa approval from consular officers abroad. The shipping company argued that they should not be held responsible as they relied on certificates issued by American Consuls in Italy stating these passengers were admissible to enter America despite lacking visas due to their status as stowaways. However, this argument was rejected by both lower courts and eventually by the Supreme Court too because it found no provision within immigration law allowing such exceptions for stowaways.

In the dissenting opinion for Lloyd Sabaudo Societa Anonima Per Azioni v. Elting, it was argued that the majority's decision to uphold a fine against an Italian steamship company for bringing an immigrant into the United States who had been previously deported was incorrect. The dissenting justices believed that because there were no clear regulations or laws in place at the time of departure from Italy stating that immigrants who had been previously deported could not be transported back to America, it was unfair and unjust to penalize the shipping company after they arrived in New York with such passengers on board. They contended this ruling set a dangerous precedent by punishing parties without providing them prior notice of their potential legal infractions.