7/29/2019 Mullane v. Central Hanover

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Gregnnecia Darrett

Mullane V. Central Hanover Bank & Trust Co.

Supreme Court of the United States

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Facts:

Central Hanover Bank and Trust Company established a common trust fund.

The income, capital gains, losses and expenses of collective trusts are shared by the

constituent trusts in proportion to their contribution. The trust company established a

common fund and invested in the assets of unlimited number of estates, of which it istrustee. The Bank petitioned the Surrogates court forsettlement of its first account.

Approx. 113 trusts participated in the common trust; some were not residents of New

York. Under NY law, the only notice required is via publication in newspaper, so the

company placed publication in Newspaper. The trust company notified by mail the

people whose contact info they had and appointed a special guardian for all those who

knew or didnt know of settlement and didnt appear in court two guardians.

Procedural History:

Appellant Trial Court Appellate division of Supreme Court Court of Appeals- Supreme Court

Issue:

1. Whether the process of service was a violation of Due process?Rule:

The notice must be of such nature, as reasonably to convey the requiredinformation, and it must afford a reasonable time for those interested to make

their appearance.

Holding:

Yes there is violation for beneficiaries. Under the circumstances, it is notreasonable to reach those who could easily be informed by other means.

Reasoning:

The proceedings can violate Due process in 2 ways:o 1) It may cut off rights to have a trustee answer for negligent or illegal

impairments of their interests.

o 2) Their interests are subject to diminution in the proceedings byallowance of fees and expenses to one who may not conduct in their best

manner Newspapers are not good enough for notice anymore because the odds that the

information will reach some people are small. Publication should be used in

certain situations.

Even for local residents, it would be by coincidence to be read by them. Even ifits read,its a list of numbers; you would have to memorize the specific numberto know if yours appeared.