Indiana Auto Shredders Company (Shredders) (defendant) operated a shredding plant for the recycling of automobiles in the Irish Hill section of Indianapolis, Indiana. The plant was specifically zoned for shredder use, and Shredders had a permit to use the property for shredder use. Russell Harrison and others who resided or worked near the plant (plaintiffs) brought suit against Shredders, alleging that the dust, vibration, and noise of the plant constituted a common-law and statutory nuisance, and that the plant violated local air-pollution regulations. No imminent health hazards caused by the plant were established at trial. The federal district court granted a permanent injunction enjoining Shredders from operating the plant, and awarded compensatory and punitive damages. Shredders appealed.