3. Background Information
The Legislature of the State of New York passed a
law in 1798 giving to Chancellor Robert Livingston
the exclusive privilege of "navigating all boats that
might be propelled by steam, on all waters within the
territory, or jurisdiction of the State, for the term of
twenty years.“
Thus forming the Fulton-Livingston monopoly in
New York
4. Background Information
Thomas Gibbons and Aaron Ogden both ran
competing ran competing steamboats
Gibbons had a federal-coasting license
Aaron had a state-required Fulton-Livingston license
5. The Issue
Does Congress have complete power to regulate
interstate commerce? (based on Article 1, Section 8)
Or does this only apply to “sale of goods”?
What is “commerce”?
Did the federal government hold an exclusive power or
did the states possess the power to regular interstate
commerce?
6. The Decision
Vote 6-0; in favor of Gibbons
For the Court: Chief Justice Marshall
Concurring: Johnson
Broadened definition of “commerce”
Ruled that should a state law regulating commerce
interfere with a federal law, the federal law was
always supreme
7. “enjoined or restrained by any writ of injunction, or order by the Court of Chancery of the State of New
York, by virtue, or under color of any act of the Legislature of that State, from navigating any boat or
vessel moved by steam or fire, belonging in part, or in whole, to him, on the waters between the ancient
shores of the State of New Jersey and New York, the plaintiff or plaintiffs in such writ or order shall be
liable to the person or persons aggrieved for all damages, expenses and charges occasioned thereby, to
be recovered with triple costs. . .”
8. In the future…
The Court did not, however, resolve the second issue
in the case:
Could states regulate areas of commerce Congress had not
regulated?
Could states simultaneously regulate commerce that the
Congress was regulating?
This case sets a precedent for future cases
