Opinion Summary: Pung v. Isabella County | Small Debt, Tiny Check

Opinion Summary: Pung v. Isabella County | Small Debt, Tiny Check

June 27, 2026 · 19 min · Season 2025 · Episode 104

About this episode

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…

Topics covered

Keywords

Mentioned in this episode

Organizations: Isabella County

Books & works: Fifth Amendment, Eighth Amendment

Places: Michigan

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