The U.S. Supreme Court case Bailey, Trustee in Bankruptcy of Grant, v. Baker Ice Machine Company revolved around a dispute over the ownership of an ice machine that was sold to a man named Grant who later declared bankruptcy. The Baker Ice Machine Company claimed they still owned the machine because it had been sold on conditional sale terms and full payment hadn't been received before Grant's bankruptcy proceedings began. However, Bailey as trustee for Grant’s estate argued that under Kentucky law (where this case took place), such conditional sales were not valid unless registered with county clerk which wasn’t done in this instance; hence he considered the ice machine part of bankrupt estate available for distribution among creditors including himself as trustee fees. In its decision, the Supreme Court sided with Bailey stating that while personal property could be transferred conditionally according to Kentucky law at that time, failure to register such transaction made it void against creditors and subsequent purchasers without notice - thus making it part of bankrupt’s general assets subject to administration by his trustee.

In the dissenting opinion for Bailey, Trustee in Bankruptcy of Grant v. Baker Ice Machine Company, Justice Holmes disagreed with the majority's decision to deny recovery on a contract due to an alleged fraud. He argued that there was no clear evidence of fraudulent intent by either party at the time of entering into the agreement and thus it should not be voided. Furthermore, he contended that even if there had been some form of deception or misrepresentation involved in securing consent for this transaction, it would still not justify nullifying a legally binding contract unless such deceit directly influenced its terms or conditions. In essence, his view was based on upholding contractual obligations irrespective of any subsequent disputes over their legitimacy or fairness unless proven otherwise beyond reasonable doubt.