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OLC Files Petition with the U.S. Supreme Court in a Local Property Rights Case from Isabella County
https://olcplc.com/public/media?1753189612
Philip L. Ellison, attorney at Outside Legal Counsel PLC, today announced the filing of a Petition for a Writ of Certiorari with the United States Supreme Court on behalf of Michael Pung, Personal Representative of the Estate of Timothy Scott Pung. The petition seeks review of a decision by the United States Court of Appeals for the Sixth Circuit in the case Pung v. Isabella County, Michigan, challenging the unconstitutional seizure and sale of private property under Michigan’s tax foreclosure laws.
Attorney Philip L. EllisonThe case stems from Isabella County’s confiscation of the Pung Estate’s family home over approximately $2,000 in disputed taxes and fees—amounts that were later determined to never have been owed. The property, with a fair market value of $194,400 at the time nearly ten years ago, was sold at a tax foreclosure auction for just $76,008, with the County retaining all proceeds. Lower courts awarded only the “surplus proceeds” from the depressed auction sale, denying compensation based on the property’s full “fair market value.”
The petition presents two critical questions for the Supreme Court:
1. Whether just compensation under the Fifth Amendment’s Takings Clause should be based on a property’s fair market value, rather than an artificially low auction price, when government seizes and sells property for unpaid taxes.This filing builds on the Supreme Court’s 2023 decision in Tyler v. Hennepin County, Minnesota, which held that retaining the profits from tax foreclosure sales violates the Takings Clause. However, Tyler left unresolved the issue of compensation when properties are greatly undersold at auction from their true value, a practice that deprives homeowners of their full equity.
2. Whether forfeiting property worth far more than the alleged debt, sold at a fraction of its value, constitutes an excessive fine under the Eighth Amendment, especially when no debt was actually owed.
“Government cannot take more than it is owed and pocket the difference at the expense of families,” said Philip L. Ellison, counsel of record. “This case is about protecting fundamental property rights and ensuring that just compensation means full and fair value—not pennies on the dollar from a fire sale. We’ve asked the Supreme Court to grant certiorari and provide correction on these vital constitutional protections.”
The Sixth Circuit’s ruling, issued on January 28, 2025, and upheld on en banc denial February 26, 2025, conflicts with Supreme Court precedents emphasizing fair market value as the measure of just compensation.
The petition highlights a growing divide among lower courts on this issue, with implications for tax foreclosure practices nationwide.
The Justices are expected to take up the petition later this fall after Isabella County has had the opportunity to provide a written response.
A copy of the filing can be downloaded here.
Outside Legal Counsel PLC is a Michigan-based law firm specializing in civil rights, government transparency, and appellate litigation. Led by attorney Philip L. Ellison, OLC is a boutique law firm headquartered in Hemlock, Michigan, dedicated to defending individual rights against government overreach. The law practice brings extensive experience in constitutional law, challenges to government wrongdoing, FOIA, and complex property rights appeals.
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