Mullane v. Cent. Hanover Bank & Trust Co.

Facts: Hanover Bank was the trustee of a fund. The fund was owned by many beneficiaries. The Bank wanted to judicially settle the fund accounts. The NY Banking Law dictated that service was fulfilled by announcing the settlement in a newspaper, every week, for three weeks.

Issue: Does the newspaper announcement really satisfy due process?

Holding: the NY Banking Law is incompatible with the 14th amendment requirement of due process.

Reasons: The court put forth a reasonableness test for notice to potential participants of a court action who are not in the state. This case doesn't pass that test.

Judgment: Reversed.

Comments: The reasonableness test is:

1. The notice must be reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.
2. Notice must reasonably convey the required information
3. Notice must afford a reasonable time for those interested to make an appearance.