Gibbons v. Ogden addresses a New York state law that granted a monopoly contract to Robert Fulton and Robert Livingston, allowing them to license steamboats and other watercraft engaged in business activities within the state. Fulton and Livingston required steamboat owners to purchase a license permitting them to operate in waterways within state boundaries. Ogden had purchased such a license, but his New Jerseyrival, Gibbons, had acquired a permit from the federal government and didn't hold a Fulton-Livingston license. It's not clear whether Gibbons refused to purchase the additional license, or whether he was prevented from buying one because he owned a foreign (out-of-state) business. New Jersey, for its part, had recently passed legislation allowing it to seize vessels not licensed to operate within New Jersey territory.
Ogden sued Gibbons in The Court of Chancery, in an attempt to prevent him from entering Hudson Bay and docking in New York City, and won a temporary victory. The case was ultimately heard in the US Supreme Court, which held federal Interstate Commerce Clause superseded state laws. The decision nullified not only the New York state law, but those of many other states that imposed a similar burden on commerce.
Case Citation:
Gibbons v. Ogden, 22 US 1 (1824)
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