A federal law (42 U.S.C. § 1983) allows individuals and companies to sue the government for deprivation of any rights, privileges or immunities, and a prevailing party can recover attorneys' fees. The issue in this case is whether a party can obtain attorneys' fees for winning a preliminary injunction, even though the government ultimately won the case on the merits.
The 11th Circuit awarded attorneys' fees to a group of peace protestors who obtained a preliminary injunction to allow them to create a nude peace symbol on a Florida beach, even though the state's regulations ultimately were upheld.
Although federal courts had been split on the attorney’s fees issue, the Supreme Court clarified the issue on June 4, ruling unanimously that plaintiffs who gain a preliminary injunction do not qualify for an award of attorney’s fees if the merits of the case are ultimately decided against them.