Louis Jackson v. Southfield Neighborhood Revitalization Initiative

Summary

The Michigan Supreme Court held that a taking occurs when a governmental unit acquires foreclosed property through the former right-of-first-refusal process for only the minimum bid and retains value exceeding the taxes, interest, penalties, and fees owed. It further held that the amended right-of-first-refusal statute applies prospectively, while the statutory surplus-proceeds procedure applies retroactively but does not govern properties never sold at public auction. The plaintiffs may pursue the excess property value through ordinary inverse-condemnation proceedings.