In the case of Pyle, Trustee in Bankruptcy of Steele, Miller & Company v. Texas Transport & Terminal Company (1914), the Supreme Court was asked to determine whether a bankruptcy trustee could recover payments made by a bankrupt company to its creditor within four months prior to filing for bankruptcy. The defendant argued that they were not aware of the debtor's insolvency at the time and thus should be allowed to keep those payments. However, under Section 60b of the Bankruptcy Act which allows trustees to reclaim such preferential transfers if certain conditions are met, including that payment enabled one creditor over others and it occurred while debtor was insolvent or resulted in insolvency. The court ruled in favor of Pyle stating that knowledge or lack thereof regarding solvency is irrelevant as long as other conditions are satisfied.

In the dissenting opinion for Pyle v. Texas Transport & Terminal Company, it was argued that the majority's decision to uphold a lower court ruling allowing a creditor to seize assets from a bankrupt company was incorrect. The dissenting justices believed this violated the principle of equitable distribution among all creditors in bankruptcy cases. They contended that by permitting one creditor to take more than its fair share, other creditors were unfairly disadvantaged and left with less or even nothing at all. This contradicted their understanding of bankruptcy law which aims at ensuring an equal treatment of all debts owed by insolvent entities so as not to favor any particular debtor over others. Therefore, they disagreed with the majority's interpretation and application of relevant laws in this case.