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THOMAS GIBBONS V. AARON OGDEN (1824) Argued February 1824 Decided March 2, 1824
Aaron Ogden and Thomas Gibbons became partners to operate only steam boat on hudson river, but due to disagreement they broke the partnership and they became rivals. Gibbons would take Ogden passengers. Ogden filed suit in New York court claiming that he is the rightful owner of the company and Gibbons is operating service illegally and New York court granted permission to stop Gibbons ferry service, Gibbons took the case to supreme court,, claiming that he got his license through federal government under Coasting Act of 1793.
Gibbons argued that he was operating ferry service under federal law and that compresses Ogden state permission, he argued Commerce clause of Article 1, section 8, of U.S. constitution which gave him authority to regulate commerce between states. Ogden countered with a monopoly on operating steamboats regulated navigation, not commerce.
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