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J.P. Stevens was a textile mill located on a tributary river that was dammed by the Army Corp. of Engineers. J.P discharged dyestuffs that met class C pollution standards. The state then upgraded the discharge standards applicable to J.P. to an A level in order to protect the recreational use of the newly created reservoir. J.P. (P) then sued the Government and won a lower court judgment of $550,000 for the cost of installing a disposal plant to meet the new class A pollution requirement.

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