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Constitutional Law Keyed to Rotunda
Reeves, Inc. v. Stake
Citation:447 U.S. 429 (1980)
In 1919, South Dakota planned to build a cement plant in response to recent regional cement shortages that interfered with and delayed both public and private enterprises and that were threatening the people of the state. Buyers in more than nine nearby States purchased cement from South Dakota’s plant. Between 1970 and 1977, 40% of the plant’s output went outside the State. In 1978, difficulties at the plant slowed production but demand for cement increased nationally. Unable to meet all orders, South Dakota decided to supply cement to its residents first and then to honor other contracts. Reeves, which had no pre-existing long-term supply contract, was hit hard by this plan. Unable to find another supplier, Reeves was forced to cut production by 76%.
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