Dartmouth College v. Woodward

Dartmouth College v. Woodward, 17 U.S. (4 Wheat.) 518 (1819), is a landmark decision of the United States Supreme Court.

After a political dispute, the New Hampshire legislature attempted to convert Dartmouth College from a private to a public institution by changing its charter and board of trustees. The original trustees sued to regain control, arguing that the legislative action violated the Contract Clause (Article I, Section 10).

Significance

Chief Justice Marshall held that the college’s original charter was a contract between the private donors and the trustees, and that New Hampshire’s law impairing that contract violated the Constitution. The decision protected private corporate charters from state interference, fostering economic development by assuring investors that corporate charters were secure. It also established that private corporations are entitled to constitutional protection against state action.

Category

US Federal Case Law