Gibbons vs Ogden
Why is this important?
Gibbons v. Ogden (1824) is an important U.S. Supreme Court case because it established the federal government's authority to regulate interstate commerce. The decision clarified the commerce clause of the U.S. Constitution (Article I, Section 8) and upheld the supremacy of federal law over state law in matters involving interstate commerce.
In this case, Aaron Ogden had a monopoly granted by the state of New York to operate steamboats in that state's waterways. He sued Thomas Gibbons, who was operating steamboats between New York and New Jersey under a separate federal license, for infringing on his monopoly. The case eventually reached the Supreme Court, and the Court, led by Chief Justice John Marshall, ruled in favor of Gibbons, stating that the federal government had the power to regulate commerce not only between states but also within states, as long as the commerce in question affected more than one state.
This decision significantly expanded federal power over economic matters in the United States, as it gave the federal government the right to regulate any activity that had a significant effect on commerce between states. It also limited the ability of individual states to regulate commerce within their borders, thus promoting a more unified national economy. Gibbons v. Ogden is still considered a cornerstone of American constitutional law and continues to inform legal interpretations of the commerce clause today.