Louis Brandeis

“ Had the adjudication been made determinative also of claims of the several creditors against the estate or of claims of the estate against individual creditors, such expedition in proceedings would be impossible, if each of the many widely scattered creditors is to be afforded a fair opportunity to be heard. Furthermore, to require every creditor to acquaint himself with the issues raised in every proceeding in bankruptcy against his debtors, in order to determine whether a decision on any such issue might conceivably affect his interests ”

“ And the resulting volume of litigation would often so delay the adjudication as to defeat the purposes of the Bankruptcy Act.
The unreasonableness of the rule contended for by the trustee is well illustrated in cases of alleged fraudulent preference. The claim may be made in respect to any creditor paid off within four months of the filing of an involuntary petition, that he received a fraudulent preference. Is every such former creditor to be deemed an existing creditor within the meaning of sections 18b and 59f and a party to the bankruptcy proceeding? ”

“ Bank, 123 Iowa, 340, 342, 98 N. W. 887. The rule is general that persons who might have made themselves parties to a litigation between strangers, but did not, are not bound by the judgment. [3] Compare Western Union Tel. ”