Gregnnecia Darrett Mullane V. Central Hanover Bank & Trust Co.

Supreme Court of the United States 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 is trustee. The Bank petitioned the Surrogates court for settlement 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 required information, 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 not reasonable 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 by allowance 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 if its read, its a list of numbers; you would have to memorize the specific number to know if yours appeared. Page | 1