In the case of Hutchins, Trustee v. William W. Bierce, Limited in 1908, the Supreme Court dealt with a dispute over bankruptcy proceedings and property rights. The defendant, William W. Bierce Ltd., was a creditor to A.O. Brown & Co., which had gone bankrupt; however, before declaring bankruptcy Brown & Co had transferred some assets to another company (the American Malting Company) as payment for its own debts - this transfer was contested by Hutchins on behalf of other creditors who argued that it constituted an unlawful preference under the Bankruptcy Act because it occurred within four months prior to filing for bankruptcy and left other creditors at disadvantageous position without any remaining assets from debtor's estate to satisfy their claims against insolvent debtor . The court ruled in favor of Hutchins stating that such transfers were indeed voidable preferences if made while insolvent or during insolvency period leading up-to filing for bankruptcy protection.

In the dissenting opinion for Hutchins, Trustee v. William W. Bierce, Limited, Justice Harlan disagreed with the majority's interpretation of bankruptcy law and its application to this case. He argued that a trustee in bankruptcy should not be allowed to recover payments made by an insolvent debtor before declaring bankruptcy if those payments were made in good faith and without knowledge of insolvency on part of the recipient. In his view, such transactions are legitimate business operations rather than fraudulent transfers intended to cheat creditors out of their due share from liquidation proceedings. The majority's ruling would discourage businesses from dealing with struggling companies for fear they might later have to return any payment received as preferential under bankruptcy laws - which he believed was contrary to both legislative intent and sound commercial practice.