In the 1945 case Meyer v. Fleming et al., Trustee, the United States Supreme Court addressed a dispute over property rights and bankruptcy law. The petitioner, Meyer, had sold land to another party who later declared bankruptcy before completing payment for the land. The trustee of the bankrupt estate claimed that because title to the property had been transferred prior to bankruptcy proceedings, it was part of the bankrupt's assets and should be used to pay off creditors. However, Meyer argued that since full payment hadn't been received at time of transfer he retained an equitable interest in said property which entitled him priority over other creditors' claims. The Supreme Court ruled in favor of Meyer stating that under California law (where this case originated), when real estate is sold on installment plan with deed delivered but balance unpaid at time seller files petition in bankruptcy; vendor retains "equitable lien" upon premises for unpaid purchase money which entitles him priority over general creditors and trustee in buyer's subsequent liquidation proceeding.

In the dissenting opinion for Meyer v. Fleming, Justice Frank Murphy argued that the majority's decision was a misinterpretation of Section 77B of the Bankruptcy Act. He believed that this section should be interpreted to protect not only creditors but also stockholders and other parties with an interest in a corporation undergoing reorganization. In his view, it was unjust to allow trustees and managers to profit from their positions at the expense of these stakeholders. Furthermore, he disagreed with the majority's assertion that there were no legal remedies available for those harmed by such actions; instead, he contended that courts have inherent powers to prevent abuses of power and ensure fair treatment for all involved parties.