Under Colorado law, the State Board of Equalization possessed authority to adjust property valuations to achieve inter-county equalization. Concluding that Denver's property values had been systematically undervalued relative to the rest of the state, the Board issued a general order directing a 40% increase in the assessed valuation of all taxable property in the City and County of Denver. The order applied across the board; it was not based on property-specific findings or individualized determinations. Bi-Metallic Investment Company, a Denver property owner, sued to enjoin enforcement, arguing that the blanket increase was imposed without prior notice or an opportunity to be heard, thereby violating the Due Process Clause of the Fourteenth Amendment (and asserting related equal protection concerns). The Colorado Supreme Court rejected the challenge and upheld the order. Bi-Metallic sought review in the U.S. Supreme Court.
Does the Due Process Clause require the government to provide individual notice and a hearing before adopting a generally applicable rule—here, a blanket increase in all Denver property valuations—that affects a large number of people in the same way?
When a governmental decision is legislative in character—i.e., it is a generally applicable rule or policy affecting a broad class of persons—due process does not require individual notice and an opportunity to be heard. Due process hearing rights attach primarily to adjudicative or quasi-judicial determinations that single out a relatively small number of persons based on individualized facts. The remedy for dissatisfaction with broadly applicable policy choices lies in the political process.
No. The Supreme Court affirmed, holding that a general, citywide increase in property valuations is a rule of general applicability for which the Constitution does not require individual notice or hearings.
Justice Holmes explained that due process protections are context-dependent. Where the government acts by making a general rule that applies to a large number of people equally, the Constitution does not mandate that each affected individual be given an opportunity to present objections. Providing individual hearings in such circumstances would be impracticable and would unduly burden governance; there must be a limit to individualized argument if government is to function. In contrast, when the government imposes assessments or makes determinations directed at a small number of persons based on specific facts about those individuals or properties, due process may require notice and a hearing. Bi-Metallic thus distinguishes legislative facts (general policy judgments guiding rules for many) from adjudicative facts (case-specific determinations about particular persons). The statewide equalization order increased Denver assessments across the board; it was not based on individualized findings about any particular parcel. As such, no individual hearing was constitutionally required. Holmes emphasized that democratic accountability substitutes for procedural hearings in this context: persons affected by legislative-type decisions are protected "in their power, immediate or mediate, over those who make the rule"—that is, through electoral and political processes rather than courtroom procedures.
Bi-Metallic is a touchstone for the adjudication–rulemaking line in administrative law and procedural due process. It is routinely taught alongside Londoner v. Denver to illustrate that individualized assessments often require hearings, while broad policy decisions do not. The case undergirds modern doctrines permitting agencies to adopt rules of general applicability (e.g., tax equalization, rate schedules, environmental standards) without providing individual trial-type hearings, even though many people are significantly affected. Statute-based procedures—such as the Administrative Procedure Act's notice-and-comment rulemaking—may apply, but as a constitutional baseline, due process does not demand individualized hearings for general rules.
Bi-Metallic Investment Co. v. State Board of Equalization establishes that the Constitution does not require individual notice and hearings for governmental actions that are legislative in nature and broadly applicable. By emphasizing the impracticality of individualized process for mass policy decisions, the Court anchors due process analysis to the character of the decision—adjudicative versus legislative—rather than the magnitude of its impact.