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Reason
Reason
Politics
Ilya Somin

Supreme Court Issues Terrible Takings Decision in Pung v. Isabella County

Today, the Supreme Court issued a terrible Takings Clause decision in Pung v. Isabella County. It's the worst Supreme Court takings decision in a long time, and perpetuates the Court's tradition of issuing awful property rights decisions on June 23 (which is the anniversary of Kelo v. City of New London). The ruling is unanimous, albeit with a concurring opinion by Justice Thomas, joined by Gorsuch, which is really more of a dissent.

Isabella County, Michigan seized the late Timothy Pung's house because he supposedly failed to pay some $2200 in taxes and fees (his estate claims he didn't actually owe anything). They then sold the property at auction for about $76,000; the County kept the $2200 it thought was owed and transferred the remaining funds (about $73,800) to Pung's estate. But the County had earlier appraised the value of the property at $194,400 and the winner of the auction resold the home for $195,000. That's strong evidence the auction price undercompensated the Pungs, and the County failed to pay the "just compensation" required by the Takings Clause of the Fifth Amendment.

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