Inc. v. Stake Reeves
Cementing Commerce Between South Dakota And Wyoming, States As Participators: "good Sense And Sound Law"
Reeves, Inc., a Wyoming concrete distributor
Stake, et al., members of the South Dakota Cement Commission
That South Dakota's refusal to sell cement to an out-of-state buyer, due to a "cement shortage" which compelled it to prefer purchasers from within the state, constituted "hoarding" and was a preferential system forbidden by the Commerce Clause of the Constitution.
Chief Lawyer for Respondent
William J. Janklow
Chief Lawyer for Petitioner
Dennis M. Kirven
Justices for the Court
Harry A. Blackmun (writing for the Court), Warren E. Burger, Thurgood Marshall, William H. Rehnquist, Potter Stewart
William J. Brennan, Jr., Lewis F. Powell, Jr., John Paul Stevens, Byron R. White
Date of Decision
19 June 1980
In a ruling that relied heavily on the Court's earlier decision in Hughes v. Alexandria Scrap Corporation (1976), the Court held that South Dakota was acting as a "participant," rather than as a "regulator," in the interstate market. Hence, its withdrawal of its product for sale to out-of-state purchasers did not constitute a violation of the Commerce Clause.
Reeves, Inc. v. Stake developed the "participant-regulator" distinction which first appeared in Hughes v. Alexandria Scrap Corporation four years earlier. It helped solidify the understanding that a state, when it operated as a "participant" in interstate commerce, could undertake actions that, were it operating as a "regulator," would constitute protectionist practices forbidden under the Commerce Clause.
Reeves solidified the "participant-regulator" distinction first established in Alexandria Scrap. Three years later, with White v. Massachusetts Council of Construction Employers, Inc. (1983), the Court reinforced its holding in the two earlier cases by upholding a mayor's executive order that set aside a fixed number of jobs on city projects for local residents.
- Hughes v. Alexandria Scrap Corporation, 426 U.S. 794 (1976).
- National League of Cities v. Usery, 426 U.S. 833 (1976).
- White v. Massachusetts Council of Construction Employers, 460 U.S. 204 (1983).
- Rhode Island v. Innis - Significance, The Supreme Court Ruling, Further Readings
- Randall Adams Trial: 1977 - Surprise Witnesses Emerge
- Inc. v. Stake Reeves - Cementing Commerce Between South Dakota And Wyoming
- Inc. v. Stake Reeves - Further Readings
- Inc. v. Stake Reeves - States As Participators: "good Sense And Sound Law"
- Inc. v. Stake Reeves - A Warning Against "balkanization"
- Inc. v. Stake Reeves - Hughes V. Alexandria Scrap Corporation
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