In the case of Joseph Wild & Company v. Provident Life and Trust Company, the U.S Supreme Court in 1908 was tasked with determining whether a trustee could recover payments made by an insolvent debtor to a creditor within four months before filing for bankruptcy. The debtor, Watkinson & Co., had paid off its debt to Joseph Wild & Co during this period. The trustee argued that these payments were preferential transfers under section 60b of the Bankruptcy Act of 1898 and should be returned to the estate for equal distribution among all creditors. However, Joseph Wild & Co contended that they received payment in good faith without knowledge or reason to believe that insolvency existed at Watkinson's end. The court ruled in favor of Provident Life and Trust Company (the trustee). It held that even if a creditor receives payment from an insolvent debtor innocently and without any intent on either side to give or receive preference, such transactions are voidable preferences under Section 60b if done within four months prior bankruptcy declaration. Therefore, it allowed recovery from innocent recipients like Joseph Wild & Co who got paid during this suspect period.

In the dissenting opinion for Joseph Wild & Company v. Provident Life and Trust Company, the justice argued that there was no legal basis to hold a third party liable for debts incurred by a bankrupt company if they had not explicitly agreed to assume such liability. The justice disagreed with the majority's interpretation of "property" in bankruptcy law, arguing it should be limited to assets owned by the debtor at the time of bankruptcy rather than extending it to include potential future earnings or profits from contracts entered into prior to bankruptcy. They further contended that allowing creditors access to these future earnings would unfairly penalize third parties who had legitimate claims on those funds and could potentially discourage business dealings with companies facing financial difficulties out of fear their investments might later be seized as part of a bankruptcy settlement.