In the case of Reading Co. v. Brown, Trustee in Bankruptcy et al., 1967, the U.S Supreme Court had to decide whether a trustee in bankruptcy could be held liable for damages caused by negligence during his administration of an estate's property. The court ruled that a trustee can indeed be held responsible under federal law for any damage resulting from their negligent actions while managing an estate’s assets. The case arose when a fire broke out on premises managed by the appointed bankruptcy trustee and spread to neighboring properties owned by Reading Company causing significant damage. The company sued the trustee arguing he was negligent in maintaining safety standards which led to fire outbreak. The court concluded that even though trustees are not typically personally liable for debts or obligations incurred during their management, they can still be held accountable if they negligently cause harm to third parties while performing their duties as trustees.

In the dissenting opinion for Reading Co. v. Brown, Justice Harlan argued that the majority's decision to hold a lessor liable for damages caused by an explosion in leased premises was inconsistent with previous bankruptcy law interpretations and could lead to unjust results. He contended that under traditional tort principles, liability should only be imposed if there is fault or negligence on the part of the defendant - something not established in this case. Furthermore, he expressed concern about potential unfairness towards creditors who may have legitimate claims against a bankrupt estate but would now find their recoveries reduced because of this new interpretation of "administrative expenses". In essence, Justice Harlan believed that such costs should be limited to those necessary for preserving the estate or facilitating its administration rather than encompassing all conceivable losses arising during bankruptcy proceedings.