In the Moyer v. Peabody case of 1908, Charles H. Moyer, president of the Western Federation of Miners, sued Colorado Governor Jesse F. Peabody for false imprisonment during a labor dispute in 1904 known as the "Colorado Labor Wars". The Supreme Court ruled in favor of Governor Peabody and held that when a state governor declares martial law during an insurrection or rebellion within their jurisdiction, they have broad discretion to determine what actions are necessary to restore order and protect public safety. This includes detaining individuals believed to be leading or participating in such disturbances without violating their constitutional rights under the Fourteenth Amendment's due process clause. The court reasoned that while these powers should not be abused, it is often difficult to distinguish between those who are guilty and innocent during times of crisis; therefore governors must act quickly based on available information even if later proven incorrect.

In the dissenting opinion for Moyer v. Peabody, Justice Harlan argued that Governor Peabody had acted beyond his authority in detaining Charles Moyer without trial during a time of labor unrest. He contended that the governor's actions were not justified by any immediate threat to public safety and thus constituted an abuse of power. Furthermore, he asserted that such arbitrary detention violated Moyer's constitutional rights under the Fourteenth Amendment, which guarantees due process of law. In essence, Justice Harlan believed that even in times of crisis or civil disorder, government officials must still adhere to constitutional limits on their powers and respect individual liberties.