Dartmouth College Case
| Trustees of Dartmouth College v. Woodward | |
|---|---|
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| Decided February 2, 1819 | |
| Full case name | Trustees of Dartmouth College v. Woodward |
| Citations | 17 U.S. 518 (more)
4 L. Ed. 629
|
| Prior history | Error to the Superior Court of the State of New Hampshire |
| Holding | |
| The charter granted by the British crown to the trustees of Dartmouth College, in New-Hampshire, in the year 1769, is a contract within the meaning of that clause of the constitution of the United States, (art. 1. s. 10.) which declares that no State shall make any law impairing the obligation of contracts. The charter was not dissolved by the revolution. | |
| Court membership | |
| Case opinions | |
| Majority | Marshall |
| Concurrence | Washington |
| Concurrence | Story |
| Concurrence | Johnson (for reasons stated by Marshall) |
| Concurrence | Livingston (for reasons stated by Marshall, Washington, Story) |
| Dissent | Duvall |
| Todd took no part in the consideration or decision of the case. | |
| Laws applied | |
| U.S. Const. Art. 1, Sec. 10 | |
Trustees of Dartmouth College v. Woodward, 17 U.S. 518 (1819), was a landmark decision in United States corporate law from the United States Supreme Court dealing with the application of the Contract Clause of the United States Constitution to private corporations. The case arose when the president of Dartmouth College was deposed by its trustees, leading to the New Hampshire legislature attempting to force the college to become a public institution and thereby place the ability to appoint trustees in the hands of the governor of New Hampshire. The Supreme Court upheld the sanctity of the original charter of the college, which pre-dated the creation of the State.
The decision settled the nature of public versus private charters and resulted in the rise of the American business corporation and the American free enterprise system.
In 1769 King George III of Great Britain granted a charter to Dartmouth College. This document spelled out the purpose of the school, set up the structure to govern it, and gave land to the college. In 1816, over thirty years after the conclusion of the American Revolution, the legislature of New Hampshire attempted to alter Dartmouth's charter in order to reinstate the College's deposed president, placing the ability to appoint positions in the hands of the governor, adding new members to the board of trustees, and creating a state board of visitors with veto power over trustee decisions. This effectively converted the school from a private to a public institution. The College's book of records, corporate seal, and other corporate property were removed. The trustees of the College objected and sought to have the actions of the legislature declared unconstitutional.
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