The U.S. Supreme Court case Taubel-Scott-Kitzmiller Company, Inc. v. Fox, et al., Trustees in Bankruptcy of Cowen Hosiery Company, Inc., Bankrupt (1923) revolved around the issue of whether a creditor who had received preferential payments from a debtor could be held liable for those payments if they were unaware that the debtor was insolvent at the time of payment. The court ruled that under Section 60b of the Federal Bankruptcy Act, even without knowledge or reason to believe that insolvency existed when receiving such payment within four months before filing bankruptcy petition by debtor can still make creditors liable to return it as voidable preference.

In the dissenting opinion for TAUBEL-SCOTT-KITZMILLER COMPANY, INC. v. FOX, et al., TRUSTEES IN BANKRUPTCY OF COWEN HOSIERY COMPANY, INC., it was argued that the majority's decision to allow a creditor to recover its claim from a bankrupt debtor's estate before other creditors was unjust and violated principles of equity. The dissenting justices believed that all creditors should be treated equally in bankruptcy proceedings and no one should have priority over others based on their status or relationship with the debtor. They contended that allowing such preferential treatment would undermine confidence in the fairness of bankruptcy law and could potentially encourage fraudulent practices by debtors seeking to favor certain creditors over others. Furthermore, they disagreed with the majority's interpretation of relevant statutes as granting this kind of preference to secured creditors.