A Scottsbluff homeowner has successfully recovered the legal title to his residential property after losing it over a $588 property tax delinquency, AP News reported. The case ultimately reached the Supreme Court which established that a homeowner’s surplus equity is protected from confiscation under the Fifth Amendment of the Constitution. Fair and his late wife, Terry, had lived in the home for nearly two decades and had already paid off its mortgage by the early 2010s.
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The legal dispute traces back to 2013, when Kevin Fair's wife was diagnosed with multiple sclerosis. Looking to provide full-time care at home, Fair resigned from his occupation, which led the household to default on their 2014 property tax bill of $588, the outlet reported. Pursuant to the Nebraska code active during that time, Scotts Bluff County issued a tax lien to a private investment firm by the name Continental Resources.
Over three years, the firm paid the ongoing taxes while the debt accrued at an interest rate of 14 percent. Once the accumulated fees, penalties and interest totaled $5,268 in 2018, it prompted the county to hand over the home's full title and $60,000 in equity to the investor, rendering the Fairs with no compensation. At the time, Pacific Legal Foundation noted that at least a dozen states, including Nebraska, permitted counties the right to seize homes over unpaid taxes without returning any remaining equity to homeowners.
The Supreme Court gets involved
Fair’s initial civil lawsuit contended that while the municipality's right to recover tax debts remains paramount, it's unconstitutional to confiscate a property's entire equity beyond the actual debt threshold. The Nebraska Supreme Court initially declined this claim in March 2022, after a year, the U.S. Supreme Court cited its landmark ruling in Tyler v. Hennepin County, a Minnesota case, and ordered the state court to reconsider.
After that, a unanimous Supreme Court ruled that the government cannot seize more than what is strictly owed in public debts, holding that any remaining equity belongs explicitly to the homeowner. Aided by the new U.S. Supreme Court precedent, Fair's legal team (Pacific Legal Foundation) pulled off the gambit to have the initial ruling overturned. By August 2024, the Nebraska Supreme Court officially took sides with Fair, with the declaration that he was owed just compensation for the seizure. Following the ruling, Christina Martin, senior attorney at Pacific Legal Foundation, said the decision confirmed that home equity is protected by the Constitution, and the outcome saved Fair from homelessness, according to AP News.
A bittersweet ending
The eventual retrieval of Fair’s property came with a personal cost as he lost his wife to health complications in 2019 leaving him to attend the litigation process alone. Furthermore, Fair suffered a major stroke shortly before the final title transfer was completed. Stepping up, community members organized a public crowdfunding campaign, which raised $16,000 to fix any upcoming tax obligations, general home repairs, and wheelchair ramp construction for the ailing widower. Contemplating his early skepticism, Fair had previously conveyed to his legal team he was quite dubious whether the national court would have the time or interest to hear the case of an average person from Western Nebraska.
Though Fair managed to retain his home during his final days, he passed away on January 17, 2025, as per Pacific Legal Foundation leaving behind a permanent statutory footprint. While the Nebraska Legislature had passed LB 727 in 2023, abolishing home equity theft statewide, Fair's personal victory required a multi-year courtroom battle to reclaim his title, according to Pacific Legal Foundation. Today, PLF says it is using the precedent to challenge similar foreclosure practices.
