Gibbons v. Ogden

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Facts: Gibbons was a former partner turned competitor of Ogden. Ogden had a monopoly to operate steamboats on the New York Harbor from New York City to New Jersey, and Gibbons was competing with him. Ogdens’ monopoly was granted by the New York state legislature. Gibbon’s ferries were licensed as “vessels to be employed in the coasting trade” under a federal law of 1793.

Procedural Posture: The trial court granted an injunction against Gibbons to stop operating his ferry. Gibbons brought an appeal to the Supreme Court on the grounds that the statute granting a monopoly to Ogden was unconstitutional as being repugnant to the commerce power granted to Congress.

Issue: Whether Congress has the power to regulate the navigation of steamboats on the New York harbor between New York and New Jersey, to the exclusion of the state of New York.

Holding: Yes.

Plaintiff's Argument: The New York law is unconstitutional because it usurps Congress’ power to regulate interstate commerce, which includes navigation.

Defendant's Argument: Congress does not have the power to regulate non-commerce events such as “navigation.” Also, Congress does not have the power to regulate commerce that occurs internal to a state, only that that occurs between two states.

Majority Reasoning: Marshall stated that the common understanding of the word “commerce” necessarily included “navigation.” Thus, Congress has the right to regulate navigation as if it were expressly mentioned in the Constitution. Congress has the power to regulate commerce “among the several states.” “Among” means intermingled with, not just between. Thus, the commerce power extends internal to the states because commerce transactions, which can affect the states generally, can originate and terminate within the state border boundaries. Although it does not extend to transactions which are completely internal to a state, the commerce power would be useless if it could not extend beyond the state boundaries because that is where the transactions occur. Lastly, the commerce power is limited only by the constitution. The Congress has the full and exclusive power to make rules by which interstate commerce is to be governed. This power is centralized in one body, but it can act wherever needed in the states.

Prepared by Roger Martin