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Gibbons V. Ogden Case Study

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The original problem started when steamships were first created by Robert Fulton and Robert Livingston. The state of New York gave them a monopoly over all navigation routes in New York. Fulton and Livingston sold franchise rights to other businessmen to operate certain routes which was legal since the monopoly was granted by the state. Two businessmen, Gibbons and Ogden, were business partners who bought a route between New York and Elizabethtown from Fulton and Livingston. However, Gibbons betrayed Ogden three years later by beginning to operate his own two ships on the same route. Ogden believed that he had the right to control the route because he had received the franchise from Fulton and Livingston. Gibbons, instead, justified his routes based on a separate federal license he obtained in coastal trading. Ogden sued Gibbons to force him to stop operating his steamship route. This case was argued by some of America's most well known …show more content…
Gibbons' lawyer, Daniel Webster, argued that Congress had exclusive national power over interstate commerce according to Article I, Section 8, Clause 3, which gives Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes, to argue otherwise would result in confusing and contradictory local regulatory policies. The New York State court agreed and issued a court order against Gibbons to stop him from operating his boats. Gibbons then appealed to the Supreme Court to help him keep operating his route in that he was protected by terms of a federal license to engage in coastal trade. His case was argued by Daniel Webster, the leading lawyer at the time. The supreme court ruled in Gibbons’ favor and decided that Congress alone had the power to regulate interstate and coastal

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