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

P, a nonprofit enterprise dedicated to promoting environmental quality, sued the Forest Service (D) to obtain judicial review of the service's decision to allow several thousand acres of a national forest in Wisconsin to be logged. The winning bidder had bid $ 55,000. P was granted a preliminary injunction against the issuance of the permit to the company that had been the high bidder for the logging contract. The judge required P to post a $ 10,000 injunction bond, pursuant to Rule 65(c). P asked the judge to reconsider because it was a nonprofit. The court refused. P didn't use a surety; it deposited $10,000 with the court. Eventually, the judge dissolved the preliminary injunction, granted D's motion for summary judgment, and dismissed the suit. P faces the possibility of having to pay damages to the forest service, though only up to the bond limit of $ 10,000. P appealed.

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