Reeves, Inc. v. Stake

South Dakota built a state-owned cement plant to address a cement shortage, expecting all output would be needed in-state, but for years the plant supplied both in-state and out-of-state buyers. When a construction boom coincided with production problems, the state's Cement Commission (defendant) directed the plant to fill South Dakota orders first. Reeves, Inc. (plaintiff), an out-of-state contractor, was financially harmed when the plant stopped filling its orders and sued, claiming the preference policy unconstitutionally discriminated against interstate commerce. The district court agreed and enjoined the policy, but the court of appeals reversed.