The Aerenthal Financial Loan Corporation lent

$578,000 to Raymond Viviani and secured the loan with a mortgage on Viviani’s ski lodge, which was located south of Burlington, Vermont. Vermont decided to build a new state highway along a route that cut right through Viviani’s lodge. Viviani contested the state’s decision and attempted to get the highway rerouted. After several months of unsuccessful battles with the state, Viviani decided to settle for the offer from the government. The state then paid Viviani the market value for the property.

Unfortunately, the state failed to notify Aerenthal Financial Loan Corporation about the transaction.

When Aerenthal discovered that it had not been notified, it filed a formal protest with the state. The state sent its apologies but argued that Aerenthal had no right to be notified about what was essentially a contractual matter between Viviani and the government. Aerenthal disagreed, arguing that the government had violated its constitutional right not to be deprived of property without due process of law. The state responded by noting that under the state constitution, it had operated properly and Aerenthal was not entitled to due process. Who is correct here? Explain.