In "Dartmouth College v. Woodward", Webster was retained by the Federalist trustees of his alma mater, Dartmouth College, in their case against the newly elected New Hampshire Democratic-Republican state legislature. The legislature had passed new laws converting Dartmouth into a state institution, by changing the size of the college's trustee body and adding a further board of overseers, which they put into the hands of the state senate. He argued that the Constitution's Contract Clause prohibited the legislature from altering the college's board of trustees. The Marshall Court, continuing with its history of limiting states' rights and reaffirming the supremacy of the constitutional protection of contract, ruled in favor of Dartmouth. The ruling set the important precedent that corporations did not, as many then held, have to justify their privileges by acting in the public interest, but were independent of the states.