In Alabama Power Co. v. Davis, the U.S Supreme Court ruled in favor of Alabama Power Company, reversing a previous decision by the Fifth Circuit Court of Appeals that had favored an employee named Davis. The case centered on whether or not an employer could be held liable for back pay under Title VII of the Civil Rights Act due to discriminatory employment practices prior to its effective date in 1965. The court found that while employers are prohibited from engaging in discriminatory practices after this date, they cannot be held responsible for actions taken before it went into effect because Congress did not intend for Title VII to apply retroactively.

In the dissenting opinion for Alabama Power Co. v. Davis, it was argued that the majority's decision to allow a private right of action under Title VII of the Civil Rights Act was not supported by legislative intent or precedent. The dissenters contended that Congress intended for administrative remedies to be exhausted before resorting to litigation and believed this should have been upheld in this case as well. They also pointed out inconsistencies with previous court decisions which had denied private rights of action in similar circumstances, arguing these precedents should have guided their judgment instead. Furthermore, they expressed concern about potential negative impacts on employers who may face an increased risk of litigation due to employees bypassing administrative procedures.