Gibbons Vs Ogden : Congress Can Regulate Inters state commerce
In Gibbons Vs. Ogden (1824) the Supreme Court held that Congress has right to regulate inter state commerce and intercourse.
What were facts of Gibbons Vs Ogden ?
New York State Legislatue granted Livingstone and Fulton exclusive navigation rights in the state for a term of 20 years. Subsequently Aaron Ogden purchased rights from them to operate steam boats between New York City and New Jersy. Ogden sued Thomas Gibbons who was operating in the same waters. Ogden was successful in New York Court of Chancery. Gibbons appealed to the Supreme Court.
What were findings of the Supreme Court in Gibbons Vs Ogden ?
The Supreme Court decided in favour of Gibbons. The Supreme Court held that monopoly granted by the New York State was in violation of Federal Licensing Act of 1793. The Court interpreted commerce clause of the Constitution widely. The Court held that the word “commerce” included not just articles in interstate trade but also the “intercourse” among the states, including navigation. Congress may pass any law that regulates commerce, so long as that commerce is not wholly confined within a single state, and its power to regulate such commerce is plenary. Thus Congress’ clearly had the authority to regulate navigation between New York and New Jersey. Thus, New York law was held unconstitutional.
This judgement expanded the power of Congress in regulation of interstate commerce.
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Mukesh Kumar Suman is an advocate and legal author based at Delhi. He regularly appears before various Judicial Forums including NCLT, NCLAT, High Courts and the Supreme Court. He can be approached at mukesh_suman@outlook.com or +91 9717864570.