U.S. Supreme Court Hears Arguments In Pung v. Isabella County

On February 25, 2026, the Supreme Court of the United States heard oral argument in Pung v. Isabella County, Michigan, No. 25-95, a case that could materially reshape the constitutional framework governing tax lien foreclosures and surplus equity claims nationwide. The argument confirms that Pung may determine not only whether surplus equity must be returned—as Tyler v. Hennepin County, No. 22-166 (May 25, 2023)¹ previously addressed—but also how "just compensation" is measured when property is sold at a tax foreclosure auction for less than asserted fair market value.

As we previously discussed here, lower courts have been grappling with how to measure "just compensation" after Tyler and whether the foreclosure sales price is a constitutionally sufficient proxy for fair market value. The oral argument confirms that the Justices are not merely revisiting Tyler; they are testing the outer limits of takings doctrine in the tax foreclosure context.