In the 1933 case of Cooper, Trustee in Bankruptcy v. Dasher, the United States Supreme Court was tasked with determining whether a bankruptcy trustee could recover payments made by an insolvent debtor to his creditors within four months prior to filing for bankruptcy. The debtor had given promissory notes secured by mortgages on real estate and then paid off these debts before declaring bankruptcy. The trustee argued that these payments were preferential transfers under Section 60b of the Bankruptcy Act and should be returned to the bankrupt's estate. The court ruled against the trustee, stating that such transactions did not constitute preferential transfers as they were not made while insolvent or resulted in any diminution of assets available for other creditors. It held that since there was no evidence showing insolvency at time of payment or reduction in assets due to it, recovery couldn't be sought from those who received them. This decision clarified how courts interpret "preferential transfer" under section 60b of Bankruptcy Act - indicating it applies only when certain conditions are met: namely insolvency at time of transaction and resulting decrease in overall asset pool available for distribution among remaining creditors.

In the dissenting opinion for Cooper, Trustee in Bankruptcy v. Dasher (1933), Justice Cardozo argued that the majority's decision to allow a trustee in bankruptcy to recover payments made by an insolvent debtor was incorrect. He contended that such recovery should only be permitted if it could be proven that the recipient of these payments had reasonable cause to believe they were being made fraudulently or with intent to prefer one creditor over others. In this case, he believed there was no evidence suggesting any fraudulent intent on part of either party involved and thus, disagreed with allowing the trustee's recovery claim. Furthermore, he emphasized his belief in maintaining fairness among creditors during insolvency proceedings and warned against creating precedents which might disrupt this balance without justifiable reasons.