In the 1999 case In re Frederick W. Bauer, the U.S. Supreme Court dealt with issues of bankruptcy and tax law. The petitioner, Frederick W. Bauer, had filed for Chapter 7 bankruptcy but was denied a discharge of his debt due to allegations that he failed to keep or preserve adequate financial records and did not satisfactorily explain any loss of assets as required under Bankruptcy Code Section 727(a)(3) & (5). Furthermore, it was alleged that he made false oaths in connection with his bankruptcy case violating Section 727(a)(4). The court ruled against Bauer stating that these were grounds enough for denial of discharge in a Chapter 7 proceeding.

The dissenting opinion in the case of In re Frederick W. Bauer, 1999 argued that the majority's decision to disbar Bauer was too severe and not proportionate to his misconduct. The dissenters believed that while Bauer had indeed committed professional misconduct by misappropriating client funds, he did so under unique circumstances which included a mental illness diagnosis and personal financial difficulties. They pointed out that there were no previous complaints about his conduct over many years of practice prior to this incident, suggesting it was an aberration rather than a pattern of behavior. Furthermore, they noted that he had fully repaid the misappropriated funds plus interest before disciplinary proceedings began and expressed remorse for his actions. Therefore, they felt a suspension would have been more appropriate punishment instead of disbarring him permanently from practicing law.