In the case of North Carolina Department of Transportation et al. v. Crest Street Community Council, Inc., et al., 1986, the Supreme Court ruled in favor of the North Carolina Department of Transportation (NCDOT). The dispute arose when NCDOT planned to construct a highway through a predominantly African-American neighborhood in Durham, known as Crest Street. The local community council opposed this plan and filed suit under Title VI of the Civil Rights Act and its implementing regulations which prohibit federally funded programs from discriminating on grounds of race or color. They claimed that NCDOT's decision was racially discriminatory because it disproportionately affected their community compared to other alternatives available for constructing the highway. The court held that while federal funds were involved in building part of the project, not all parts received such funding; therefore, only those portions receiving federal assistance would be subject to Title VI scrutiny - not entire projects or policies as argued by plaintiffs. Therefore, since there was no evidence showing racial discrimination specifically within these federally-funded sections, NCDOT did not violate Title VI provisions.

In the dissenting opinion, Justice White argued that the Court's decision was inconsistent with its previous rulings on standing. He contended that the Crest Street Community Council should not have been granted standing to sue because they did not suffer a direct injury from the North Carolina Department of Transportation's actions. Instead, he believed their alleged harm - potential displacement due to highway construction - was speculative and indirect. Furthermore, he suggested that allowing such suits could open up floodgates for litigation by any group disagreeing with government policy or decisions. In his view, this would overburden courts and potentially hinder effective governance.