This section contains the nature of the case and procedural background.

Congress authorized construction of the Tennessee-Tombigbee Waterway in 1946. Shortly after authorizing construction, Congress decided that the waterway was not economically feasible and as such did not appropriate funds for it until 1966. A restudy was done, and it was determined that there should be a 300-foot-wide channel. In 1967, interested parties submitted proposals that because of the new width the project needed to be reevaluated again. During budget hearings, the L&N Railroad and the Committee for Leaving the Environment of America Natural (Ps) appeared and opposed the funding. Funds were appropriated, and Ps sued to enjoin the construction. The suit was dismissed, and construction proceeded. The suit was filed again in November 1976 seeking to enjoin construction because they alleged the actual construction was not in conformance with the project authorized by Congress. An amended complaint was filed in 1978 questioning for the first time the 300-foot channel. After filing the lack of authority claims, Ps made no effort to obtain immediate injunctive relief to halt further expenditures of funds. (At the time of filing about 5% of projected funds had been spent and by the time of the amendment about 18% of projected funds had been spent.) Under the present situation, the obligations of the contracts were over $860 million, with over $616 million already spent. The district judge concluded that the action was barred by laches. Ps appealed.

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