Gibbons v. Ogden
Citation and Court
22 U.S. (9 Wheat.) 1 (1824). United States Supreme Court. Chief Justice Marshall, writing for the Court.
Facts
New York granted Robert Livingston and Robert Fulton an exclusive license to navigate by steamboat on state waters, and Aaron Ogden obtained a sublicense to operate a ferry between New York City and New Jersey. Thomas Gibbons operated competing steamboats on the same waters under a federal coastal licensing act. Ogden sued Gibbons in New York courts, which upheld the state monopoly. Gibbons appealed, arguing that his federal license preempted the state grant.
Issue
What is the scope of Congress’s power to regulate commerce among the several states, and does a federal license to operate coastal vessels preempt a conflicting state-granted steamboat monopoly?
Holding
Congress has broad power to regulate commerce among the states, including navigation. The federal Coasting License Act preempted the New York steamboat monopoly; Gibbons could operate his vessels under his federal license.
Rule / Doctrine
Broad Commerce Clause Power: “Commerce” is not limited to buying and selling goods but includes all commercial intercourse — navigation, transportation, and the means of carrying it out. “Among the several states” means commerce that concerns more than one state, reaching commerce that occurs partly within a state if it affects other states. Congress’s power to regulate this commerce is plenary; the only limits are those found in the Constitution itself.
Significance
Gibbons v. Ogden is the foundational Commerce Clause case. Chief Justice Marshall’s expansive definition of “commerce” and the reach of congressional power over it set the terms of the Commerce Clause debate for two centuries. The decision broke up state monopolies obstructing interstate transportation and helped create a national economic market. Its broad conception of commerce power provided the constitutional basis for the New Deal legislation upheld in Wickard v. Filburn and much of the modern regulatory state.