Inc. v. Stake Reeves

The Supreme Court's Reeves, Inc. v. Stake opinion relied heavily on its judgment in Hughes v. Alexandria Scrap Corporation, (1976). The earlier case involved a Maryland statute whereby the state paid a bounty to scrap processors who presented an inoperable automobile more than eight years old to the state. In 1974, Maryland amended its provisions regarding these junk cars, or "hulks," establishing a requirement that out-of-state scrap processors must present a certificate of title or police documentation to show that the hulk was obtained legally. Alexandria Scrap Corp., a Virginia company, brought a lawsuit charging that the statute was a violation of the Constitution's Commerce Clause, infringing on the company's right to equal protection under the law. After a district court granted a summary judgement in favor of the company, the case was appealed to the Supreme Court, which reversed the ruling by a 6-3 majority, holding that Maryland was acting as a participant in the scrap-metal market, not a regulator. Thus, its laws did not interfere with the flow of interstate commerce.