Charlevoix County Tax Foreclosure Settlement Approved and Claims Process Announced; Property Owners Must File by April 9, 2026

For Immediate Release | August 25, 2025
https://olcplc.com/public/media?1756129845

After nearly seven years of hard-fought litigation, the Circuit Court for Charlevoix County has granted final approval to the class action settlement in Zettel v. County of Charlevoix (Case No. 18-0591-26-CZ), a landmark case that restores constitutional protections for property owners whose homes and land were lost in tax foreclosures. The settlement provides that qualified property owners—or their heirs and successors—whose properties were foreclosed and sold at auction between January 1, 2012, and December 31, 2020, may recover 95 percent of the surplus proceeds from those sales, plus interest calculated at Michigan’s variable judgment rate in proportion to their ownership interest.

The case began in 2018, when Bryan and Gail Zettel filed suit against Charlevoix County and its Treasurer, alleging that the County had unconstitutionally withheld surplus proceeds from tax foreclosure auctions. At the heart of the claim was a simple principle: when a home or parcel of land is sold for more than the amount of back taxes owed, the government cannot pocket the extra funds. Instead, those funds rightfully belong to the former property owner.

The lawsuit was greatly strengthened by various decisions from appellate courts that adopted the arguments of Zettel's counsel. In response, the Michigan Legislature enacted Public Act 256 of 2020, which created a statutory process for partial recovery of surplus proceeds. However, the courts determined that PA 256 could not retroactively strip away already-vested takings claims for earlier foreclosures. Against this legal backdrop, the Zettel's case was pressed forward, ultimately achieving certification of a class of property owners whose rights had been denied under the old regime.

The Charlevoix County Circuit Court approved of the settlement followed extensive notice to affected property owners and a fairness hearing. With no objections or opt-outs filed, the Court determined that the settlement was fair, reasonable, and adequate. As a result, affected property owners finally have a clear and enforceable path to recover the equity they lost.

The Court appointed E. Powell Miller of The Miller Law Firm, P.C., Philip L. Ellison of Outside Legal Counsel PLC, and Matthew E. Gronda of Gronda PLC as Class Counsel, who will represent claimants without any need for individuals to hire separate attorneys. Eligible property owners must file a claim form no later than April 9, 2026. Those who fail to file before the deadline will permanently forfeit their right to recover.

Claim forms and settlement documents are available on the official case website at charlevoixtaxclass.com.

This case reflects a significant moment in Michigan property law, where homeowners who endured some of the harshest consequences of the state’s tax foreclosure system now have an opportunity to reclaim what the Constitution promises them - just compensation for what was taken.

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