South Dakota Supreme Court
White Eagle Oil & Refining Co. v. Gunderson
October 28, 192548 S.D. 608
Summary
The court held that the actions could proceed against state officers because the plaintiffs alleged that the officers were acting unlawfully and invading property rights rather than seeking affirmative performance of an obligation belonging to the state. It also assumed original jurisdiction because the actions implicated statewide interests, alleged diversion of public funds, and presented issues that would ultimately require Supreme Court resolution. The court concluded that using motor-fuel-tax revenues for retail gasoline operations violated the constitutional requirement that taxes be applied only to the purposes for which they were levied, overruled the demurrers, and granted a temporary injunction.