In Drummond's Administrators v. Magruder & Co.'s Trustees, the Supreme Court of the United States heard a case concerning an executor’s right to recover debts owed by a debtor who had died before payment was made. The court held that when a debt is due from one person to another and the debtor dies without paying it, his personal representatives are entitled to receive it in full from those who have received any part of it since his death. This decision established that creditors could not be deprived of their rights simply because they were unable to collect on them prior to the debtor's death. Furthermore, this ruling also provided legal protection for executors and administrators seeking repayment after someone has passed away; if money or property was transferred out of an estate before being paid off, then those responsible must return what they took back into said estate so that creditors can be compensated accordingly.

In Drummond's Administrators v. Magruder & Co.'s Trustees, the Supreme Court was tasked with determining whether a creditor of an insolvent debtor could recover from a third party who had received payment from the debtor prior to its insolvency. The majority opinion held that such recovery was not possible because it would be inequitable for creditors to receive more than they were entitled to under state law and that allowing them to do so would create uncertainty in commercial transactions. However, Justice Story dissented on this point, arguing that creditors should have been allowed some form of relief since their rights had been violated by the third party receiving payment while knowing about the impending insolvency. He argued further that denying them any remedy would encourage fraud and injustice against creditors as well as discourage individuals from lending money or extending credit when there is risk involved due to potential losses if debtors become insolvent before repayment can occur.