The U.S. Supreme Court case Taylor et al., Independent Committee, v. Standard Gas & Electric Co. et al., 1938 revolved around the issue of corporate reorganization and stockholder rights under Section 77B of the Bankruptcy Act. The plaintiffs, minority shareholders in a subsidiary company (Debenture Holders Protective Committee), alleged that they were unfairly prejudiced by a reorganization plan approved by majority shareholders and sanctioned by lower courts which favored the parent company (Standard Gas & Electric). They argued that their interests were not adequately protected as required under bankruptcy law because they received less value for their shares than those held by Standard Gas & Electric Company in another subsidiary corporation. The Supreme Court ruled in favor of the plaintiffs, finding that there was indeed an unfair discrimination against them contrary to what is stipulated in Section 77B(f) of the Bankruptcy Act which mandates fair and equitable treatment for all parties involved during corporate restructuring processes. The court emphasized on equal treatment among creditors or stockholders who have similar claims or interests.

In the dissenting opinion for Taylor et al., Independent Committee, v. Standard Gas & Electric Co. et al., Justice Butler argued that the majority's decision to void a reorganization plan approved by lower courts was an overreach of judicial power. He contended that there were no grounds to claim fraud or unfairness in this case and thus, it should not have been invalidated by the Supreme Court. Furthermore, he asserted that shareholders had ample opportunity to object during earlier stages of proceedings but chose not to do so until after approval was granted by both District and Circuit Courts of Appeals. Therefore, according to him, their objections came too late and should be dismissed as such.