Supreme Court of the United States

Pung v. Isabella County

June 23, 2026609 U.S. 30

Summary

Justice Alito's opinion holds that, following a tax foreclosure sale fairly conducted in light of the Nation's history of tax sales, the Takings Clause measures compensation by the auction proceeds rather than hypothetical fair market value. The Excessive Fines Clause likewise does not require payment exceeding the surplus proceeds on that theory. The Court vacated the Sixth Circuit's judgment and remanded, leaving procedural fairness challenges for consideration if properly preserved. Justice Sotomayor, joined by Justices Gorsuch and Jackson, concurred to emphasize that the Court did not define a fair auction or endorse the proposed standards for one. Justice Thomas, joined by Justice Gorsuch except as to footnote 1, concurred in part and in the judgment; he joined all but Part II–B and expressed the preliminary view that the County's conduct likely violated historical safeguards and was unconstitutional.

Holding

  • The constitutional baseline for just compensation following a tax foreclosure sale.. The auction sale price, rather than hypothetical fair market value, is the proper baseline when the sale is fairly conducted in light of the Nation's history of tax sales; the owner is entitled to the surplus proceeds above the tax debt.
  • Whether the Excessive Fines Clause requires fair-market-value compensation following a tax sale.. The Excessive Fines Clause does not require the government to return more than surplus proceeds following a tax sale fairly conducted in light of the Nation's history merely because the auction price was below hypothetical fair market value.

Docket 25-95

Cited authorities

  • 26 U.S.C. §6325
  • Mich. Comp. Laws §211
  • 2 Stat. 727
  • 3 Stat. 174
  • 14 Stat. 108
  • Mich. Comp. Laws §211

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