The episode discusses the Supreme Court case Pung v. Isabella County, focusing on the implications of the Takings Clause regarding just compensation in tax foreclosure sales.
Pung v. Isabella County | Case No. 25-95 | Docket Link: Here | Argued: 02/25/2026 | Decided: 06/23/2026 Overview: A Michigan family lost their $194,400 home at a tax auction for $76,008 over a disputed $2,241.93 debt. The Court decided whether just compensation under the Takings Clause demands fair market value or only the auction surplus. Question Presented: Whether the Fifth Amendment's Takings Clause requires the government to pay fair market value — not just the auction surplus — after a tax foreclosure sale. Posture: District Court awarded surplus only; Sixth Circuit affirmed on circuit precedent; Supreme Court granted certiorari. Main Arguments: Petitioner (Pung Family): (1) Just compensation under the Fifth Amendment requires fair market value, not the artificially depressed auction sale price; (2) No court in 250 years held surplus proceeds automatically satisfy just compensation for a home sold far below assessed value; (3) The Eighth Amendment's Excessive Fines Clause bars the government from consuming the vast majority of a homeowner's equity over a small tax debt. Respondent (Isabella County): (1) Centuries of English and American law establish that surplus auction…
Organizations: Isabella County
Books & works: Fifth Amendment, Eighth Amendment
Places: Michigan
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