In the case of Alyeska Pipeline Service Co. v. Wilderness Society et al., 1974, the U.S Supreme Court ruled that American courts could not award attorney's fees to winning parties unless authorized by Congress or under specific circumstances recognized in equity jurisprudence. The dispute arose when environmental groups including the Wilderness Society sued Alyeska Pipeline Service Company for violating federal law during construction of a pipeline in Alaska. Although they initially won an injunction halting construction, this was later overturned on appeal and their suit dismissed as moot after Congress passed legislation allowing it to proceed. The District Court then awarded them $6 million in legal costs against Alyeska, which appealed all the way up to the Supreme Court arguing that such awards were contrary to traditional American practice where each party bears its own litigation expenses (the "American Rule"). In a unanimous decision, Justice White wrote for the court agreeing with Alyeska and reversing previous rulings; he stated there was no 'private attorney general' doctrine authorizing fee-shifting and any changes should come from legislature rather than judiciary.

In the dissenting opinion for Alyeska Pipeline Service Co. v. Wilderness Society et al., Justice Douglas argued that courts have inherent power to award attorney's fees in cases where private parties have vindicated important public rights, even if Congress has not explicitly authorized such awards. He contended that this "private attorney general" doctrine is rooted in a long history of court decisions and serves an essential role in enforcing laws when government enforcement may be inadequate due to limited resources or political considerations. Furthermore, he believed that denying these fee awards would discourage public interest litigation by making it financially unfeasible for many potential litigants, thus undermining democratic values and access to justice.