June 1, 1948, federal officers raided the shrine under the Trading with the Enemy Act the seize the Kotohira Jinsha property and making arrests.
March 31, 1949, Kotohira Jinsha files lawsuit against the Attorney General’s office (held by J. Howard McGrath) for misusing Section 9 of the Trading with the Enemy Act against a civilian organization and not under the influence of the Japanese government.
J. Frank McLaughlin Robertson, Castle & Anthony Attorney General’s office Judge McLaughlin found the Attorney General’s office in violation of the First Amendment rights of plaintiffs in the United States Constitution with reference to Robert H. Jackson in American Communications Association v. Douds.
Judge J. Frank McLaughlin found the Attorney General’s office had no basis on which to exercise the Trading with the Enemy Act, moreover since 1945 Japan had abolished state religion under Douglas MacArthur and by judicial order return seized property to Kotohira Jinsha.
The successful case demonstrated the possibility for other Japanese-based organizations perceived as being wronged by the United States to go to court.