Mullane v. Central Hanover Bank & Trust Co.

339 U.S. 306, 70 S. Ct. 652, 94 L. Ed. 865 · Supreme Court of the United States · 1950

Civil Procedure Assigned in 19 casebooks

Case brief summary

Rule

Before a court can make a decision that takes away someone's property rights, the government must give notice that is actually reasonably likely to reach the person and let them know they can object, not just a token gesture.

Facts

A bank combined many small trust funds into one fund, as state law allowed. To get court approval, it only published a newspaper notice to beneficiaries, even though it had many of their names and addresses on file.

Procedural history

A guardian for unknown beneficiaries argued the newspaper notice was unconstitutional. New York's trial and appeals courts, including its highest court, disagreed and approved the bank's actions. The case then reached the U.S. Supreme Court.

Issue

Does publishing notice in a newspaper, instead of mailing it to beneficiaries whose addresses are already known, satisfy the Constitution's requirement of fair notice before a court ruling affects their property?

Holding

For beneficiaries with known addresses, newspaper notice alone violated due process, so the case was sent back. For unknown or future beneficiaries, newspaper publication was acceptable.

Reasoning

Due process requires notice actually likely to reach people, not just technical notice. Since the bank knew many addresses, mailing was easy and should have been used. For unknown or uncertain beneficiaries, publication was reasonable since better notice was impractical.

Opinions

Majority (Jackson): Notice by newspaper alone is not enough for known beneficiaries with known addresses, but it is acceptable for unknown or uncertain beneficiaries.

Dissent (Burton): The State should have discretion to decide if more notice than what was given is needed, and the Constitution does not require more here.

Test yourself

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How did Central Hanover Bank notify beneficiaries of the petition to settle its first account as common trustee?

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What kind of trust arrangement did Central Hanover Bank establish, and why did it petition the Surrogate's Court?
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