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Gibbons v. Ogden, 22 US 1 (1824)

Ogden was a New York state resident, and had the upper hand over Gibbons because Ogden held a Fulton-Livingston license, issued under New York state law, permitting him to operate his steamboat enterprise between New York and New Jersey.

Gibbons, a New Jersey-based competitor, lacked a New York permit, but was licensed by the federal government under the Federal Licensing Act of 1793.

The New York courts had jurisdiction to hear cases regarding their state laws, and would naturally find in favor of Ogden because he was adhering to New York law, whereas, as far as they were concerned, Gibbons was operating outside the law.

Ogden requested The Court of Chancery of New York issue an injunction prohibiting Gibbons from entering Hudson Bay and landing in New York City. Ogden easily won his case.

Because Gibbons was licensed under federal law, the federal courts would have jurisdiction over any case he filed. Gibbons hoped the Supreme Court would uphold the federal law, which they did, finding Congress had exclusive right to regulate business that crossed state lines under the Constitution's Interstate Commerce Clause.

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Q: Why did Ogden petition the New York courts?
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