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26 Ιαν 2019 · In order to regain authority over the college, the Trustees sued Woodward, a Trustee who sided with those appointed by the State. The suit alleged that the legislature’s action violated the Trustees’ freedom to contract; and it asked the court to compel Woodward to return the college’s record, books, and seal; and to pay damages .
Trustees of Dartmouth College v. Woodward, 17 U.S. (4 Wheat.) 518 (1819), was a landmark decision in United States corporate law from the United States Supreme Court dealing with the application of the Contracts Clause of the United States Constitution to private corporations.
The legislature changed the school's corporate charter by transferring the control of trustee appointments to the governor. In an attempt to regain authority over the resources of Dartmouth College, the old trustees filed suit against William H. Woodward, who sided with the new appointees.
28 Αυγ 2024 · In Dartmouth College v. Woodward, 17 U.S. 481 (1819), the Supreme Court ruled that the state of New Hampshire had violated the contract clause in its attempt to install a new board of trustees for Dartmouth College. This case also signaled the disestablishment of church and state in New Hampshire.
Woodward (1819) held that the College would remain a private institution and not become a state university. The court’s decision confirmed that the U.S. Constitution’s contract clause prohibits states from impairing a contract—in this case, Dartmouth’s charter.
The trustees brought an action against William Woodward (defendant), Dartmouth’s secretary and treasurer, to recover the corporate property. The trustees claimed that the Contract Clause of Article I of the United States Constitution protected the college from state impairment of its contractual obligations.
The most famous and influential contract clause case in our history, Dartmouth College was a boon to higher education and to corporate capitalism. The case established the doctrine, never overruled, that a corporation charter or the grant by a state of corporate rights to private interests comes within the protection of the contract clause.
