Gibbons V. Ogden
Date: 1824
Case Background:
The state of New York granted Robert R. Livingston and Robert Fulton exclusive navigation privileges of all the waters within the jurisdiction of New York. The boats could be powered by fire or steam. The men became aware of the potential for the new steamboat navigation, the men challenged Livingston and Fulton over their exclusive power from the federal government. Aaron Ogden had tried to defy the monopoly, but purchased a license from the Livingston and Fulton in 1815. He entered business with Thomas Gibbons from Georgia. Their three year partnership came to an end when Gibbons operated another steamboat on Ogden’s route between Elizabethtown and New York City. It had been licensed by the United States Congress under a 1793 law regulating the coasting trade. The former partners ended up in the New York Court of Errors, which granted a permanent injunction against Gibbons in 1820. Issue: "Aaron Ogden filed a complaint in the Court of Chancery of New York asking the court to restrain Thomas Gibbons from operating on the waters. Ogden's lawyer contended that states often passed laws on issues regarding interstate matters and that states should have fully concurrent power with Congress on matters concerning interstate commerce. Congress had exclusive national power over interstate commerce according to Article I, Section 8 of the Constitution and that to argue otherwise would result in confusing and contradicting local regulatory policies." Decision: The Supreme Court ruled in favor of Gibbons. Congress has the right and power to regulate trade and commerce over states. Impact: "The decision of the case started a 40-year period of history during which the Supreme Court limited the federal government's ability to regulate under the Interstate Commerce Clause. During the 1930s the Supreme Court changed course again and began to grant more federal authority under Commerce Clause." |
Justice: John Marshall
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