In the case of Sexton, Trustee in Bankruptcy of Kessler & Company v. Kessler & Company, Limited (1911), the Supreme Court was asked to determine whether a bankruptcy trustee could recover payments made by an insolvent debtor prior to declaring bankruptcy. The debtor, Kessler & Co., had paid off certain creditors before filing for bankruptcy and these payments were challenged by the trustee as preferential transfers that should be returned to the estate for equal distribution among all creditors. The court held that under Section 60b of the Bankruptcy Act of 1898, such payments could indeed be recovered if they were made while insolvent and within four months prior to filing for bankruptcy with intent or reasonable cause to believe it would result in preference over other creditors. However, this rule did not apply when payment was made in regular course of business without any intention or knowledge about impending insolvency on part of both parties involved.

In the dissenting opinion for Sexton, Trustee in Bankruptcy of Kessler & Company v. Kessler & Company, Limited (1911), it was argued that the majority's decision to uphold a lower court ruling allowing an English company to claim assets from its bankrupt American affiliate contradicted established principles of international law and equity. The dissenting justices contended that by permitting foreign creditors to assert their claims against domestic debtors without requiring them to submit themselves fully under U.S jurisdiction undermines fairness and reciprocity inherent in bankruptcy proceedings. They further asserted that such a stance could potentially expose American businesses operating abroad to similar treatment, thereby creating an imbalance in international commercial relations. Moreover, they disagreed with the majority’s interpretation of relevant statutes and precedents which led them conclude that Congress intended for foreign creditors be treated differently than domestic ones during bankruptcy proceedings.