Overview
The Pung family lost their $194,400 home over a $2,242 tax bill — a tax bill they never owed. Isabella County auctioned the home for $76,000 and returned only $73,766. The family lost over $118,000 in home equity.
Question: Can local governments pay a person their home’s auction price or their home’s fair market value when the government auctions the home at a foreclosure sale?
Background: The Pung family lost $194,400 home over $2,242 tax bill they never owed. Isabella County auctioned the home, fetching $76,000. Pung family received only $73,766 back.
Pung Argues: Counties must give fair market value as compensation when government takes property, not whatever an auction produces. Losing $118,000 over $2,242 creates grossly disproportionate punishment violating Eighth Amendment Excessive Fines Clause.
Isabella County Argues: Just compensation means what someone pays at a free and fair auction. No penalty exists, the Pungs lost only difference between auction price and debt.
Stakes: If Pung wins: Property owners get market value from forced home sales regardless of what a person pays at an auction. If Isabella County wins: property owners risk losing home equity over small, disputed, but unpaid property taxes.
Oral Advocates:
For Petitioner (Pung): Philip L. Ellison of Outside Legal Counsel PLC.
United States as Amicus Curiae: Frederick Liu, Assistant to the Solicitor General, U.S. Department of Justice.
For Respondent (Isabella County, Michigan): Matthew Nelson of Warner Norcross and Judd.
Link to Opinion: TBD.
Website Link to Opinion Summary: TBD.
Website Link to Oral Argument: TBD.
Timestamps:
[00:00:00] Oral Argument Preview
[00:01:11] Oral Argument Begins
[00:01:20] Pung Opening Statement
[00:02:58] Pung Free for All Questions
[00:26:21] Pung Round Robin Questions
[00:51:09] United States Opening Statement
[00:52:18] United States Free for All Questions
[00:59:56] United States Round Robin Questions
[01:19:40] Isabella County Opening Statement
[01:21:46] Isabella County Free for All Questions
[01:39:59] Isabella County Round Robin Questions
[01:43:00] Pung Rebuttal