October Term 2025 · Docket 25-95
When a County Keeps a Home's Extra Sale Money After a Tax Foreclosure. Does the Constitution Require the Homeowner to Get the Home's Full Market Value or Only the Leftover Amount?
A Michigan homeowner lost his house over unpaid taxes. The county sold it and kept the entire sale price. The homeowner says the Constitution entitles him to more than the small surplus left after the debt.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
- — An official Court opinion was verified.
- — An official Court opinion was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Pung's lawyer welcomed the county's concession that a taking occurred, narrowing the dispute to how much compensation is owed.
Chief Justice Roberts asked whether a fair open-market sale is the proper way to determine the property's value.
Justice Kagan observed that the county's lawyer appeared to agree foreclosure sales generally do not yield fair market prices.
Justice Alito asked whether the homeowner could have borrowed against the home's equity to pay the taxes and avoid the sale.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 19-21 — Transcript, file page 10, lines 19-21
- Official Supreme Court Transcript — file page 10, lines 25-51 — Transcript, file page 10, lines 25-51
- Official Supreme Court Transcript — file page 11, lines 25-49 — Transcript, file page 11, lines 25-49
- Official Supreme Court Transcript — file page 116, lines 33-17 — Transcript, file page 116, lines 33-17
- Official Supreme Court Transcript — file page 12, lines 23-45 — Transcript, file page 12, lines 23-45
- Official Supreme Court Transcript — file page 13, lines 25-21 — Transcript, file page 13, lines 25-21
- Official Supreme Court Transcript — file page 14, lines 55-15 — Transcript, file page 14, lines 55-15
- Official Supreme Court Transcript — file page 15, lines 19-27 — Transcript, file page 15, lines 19-27
- Official Supreme Court Transcript — file page 5, lines 11-21 — Transcript, file page 5, lines 11-21
- Official Supreme Court Transcript — file page 5, lines 23-53 — Transcript, file page 5, lines 23-53
- Official Supreme Court Transcript — file page 6, lines 55-11 — Transcript, file page 6, lines 55-11
- Official Supreme Court Transcript — file page 61, lines 45-35 — Transcript, file page 61, lines 45-35
- Official Supreme Court Transcript — file page 7, lines 49-53 — Transcript, file page 7, lines 49-53
- Official Supreme Court Transcript — file page 71, lines 27-33 — Transcript, file page 71, lines 27-33
- Official Supreme Court Transcript — file page 71, lines 35-39 — Transcript, file page 71, lines 35-39
- Official Supreme Court Transcript — file page 72, lines 37-41 — Transcript, file page 72, lines 37-41
- Official Supreme Court Transcript — file page 72, lines 9-9 — Transcript, file page 72, lines 9-9
- Official Supreme Court Transcript — file page 73, lines 11-15 — Transcript, file page 73, lines 11-15
- Official Supreme Court Transcript — file page 73, lines 17-9 — Transcript, file page 73, lines 17-9
- Official Supreme Court Transcript — file page 74, lines 33-35 — Transcript, file page 74, lines 33-35
- Official Supreme Court Transcript — file page 74, lines 37-13 — Transcript, file page 74, lines 37-13
- Official Supreme Court Transcript — file page 75, lines 17-19 — Transcript, file page 75, lines 17-19
- Official Supreme Court Transcript — file page 75, lines 27-27 — Transcript, file page 75, lines 27-27
- Official Supreme Court Transcript — file page 76, lines 41-49 — Transcript, file page 76, lines 41-49
- Official Supreme Court Transcript — file page 77, lines 45-53 — Transcript, file page 77, lines 45-53
- Official Supreme Court Transcript — file page 78, lines 15-17 — Transcript, file page 78, lines 15-17
- Official Supreme Court Transcript — file page 8, lines 7-35 — Transcript, file page 8, lines 7-35
- Official Supreme Court Transcript — file page 9, lines 19-27 — Transcript, file page 9, lines 19-27
- Official Supreme Court Transcript — file page 9, lines 41-51 — Transcript, file page 9, lines 41-51
- Official Supreme Court Transcript — file page 92, lines 35-25 — Transcript, file page 92, lines 35-25
A citizen's guide to the whole case
What this case is about
Isabella County foreclosed on Kevin Pung's home for unpaid taxes. The county sold the property and kept all the proceeds. Pung says the county took his home and must pay its full market value. The county says he is owed only the surplus left after his tax debt.
Official sources for this section
- Official Supreme Court Transcript — file page 116, lines 33-17 — Transcript, file page 116, lines 33-17
- Official Supreme Court Transcript — file page 5, lines 23-53 — Transcript, file page 5, lines 23-53
- Official Supreme Court Transcript — file page 61, lines 45-35 — Transcript, file page 61, lines 45-35
- Official Supreme Court Transcript — file page 71, lines 27-33 — Transcript, file page 71, lines 27-33
- Official Supreme Court Transcript — file page 92, lines 35-25 — Transcript, file page 92, lines 35-25
How the case got here
A Michigan court allowed the foreclosure. The county sold the home and kept the proceeds. Pung appealed, and the Sixth Circuit ruled against him. The Supreme Court agreed to hear the case.
Official sources for this section
- Official Supreme Court Transcript — file page 5, lines 11-21 — Transcript, file page 5, lines 11-21
- Official Supreme Court Transcript — file page 73, lines 17-9 — Transcript, file page 73, lines 17-9
What each side wants
Pung argues the county took his home, so the Constitution requires paying its full market value, not just the leftover money.
Isabella County argues a fair foreclosure sale settles the debt, so the homeowner is entitled only to the surplus proceeds.
Official sources for this section
- Official Supreme Court Transcript — file page 116, lines 33-17 — Transcript, file page 116, lines 33-17
- Official Supreme Court Transcript — file page 5, lines 23-53 — Transcript, file page 5, lines 23-53
- Official Supreme Court Transcript — file page 61, lines 45-35 — Transcript, file page 61, lines 45-35
- Official Supreme Court Transcript — file page 71, lines 27-33 — Transcript, file page 71, lines 27-33
- Official Supreme Court Transcript — file page 92, lines 35-25 — Transcript, file page 92, lines 35-25
What each side says
Pung's lawyer says history supports paying full market value when a home sells for more than the debt owed.
The county's lawyer says a fair sale process satisfies the Constitution, and the surplus is the just payment.
Official sources for this section
- Official Supreme Court Transcript — file page 116, lines 33-17 — Transcript, file page 116, lines 33-17
- Official Supreme Court Transcript — file page 5, lines 23-53 — Transcript, file page 5, lines 23-53
- Official Supreme Court Transcript — file page 61, lines 45-35 — Transcript, file page 61, lines 45-35
- Official Supreme Court Transcript — file page 71, lines 27-33 — Transcript, file page 71, lines 27-33
- Official Supreme Court Transcript — file page 92, lines 35-25 — Transcript, file page 92, lines 35-25
What the justices asked
Chief Justice Roberts asked what is wrong with using an open-market sale to learn the property's true value.
Justice Kagan noted the county's lawyer seemed to agree that foreclosure sales generally do not produce fair market prices.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 19-21 — Transcript, file page 10, lines 19-21
- Official Supreme Court Transcript — file page 10, lines 25-51 — Transcript, file page 10, lines 25-51
- Official Supreme Court Transcript — file page 11, lines 25-49 — Transcript, file page 11, lines 25-49
- Official Supreme Court Transcript — file page 12, lines 23-45 — Transcript, file page 12, lines 23-45
- Official Supreme Court Transcript — file page 13, lines 25-21 — Transcript, file page 13, lines 25-21
- Official Supreme Court Transcript — file page 14, lines 55-15 — Transcript, file page 14, lines 55-15
- Official Supreme Court Transcript — file page 15, lines 19-27 — Transcript, file page 15, lines 19-27
- Official Supreme Court Transcript — file page 6, lines 55-11 — Transcript, file page 6, lines 55-11
- Official Supreme Court Transcript — file page 7, lines 49-53 — Transcript, file page 7, lines 49-53
- Official Supreme Court Transcript — file page 71, lines 35-39 — Transcript, file page 71, lines 35-39
- Official Supreme Court Transcript — file page 72, lines 37-41 — Transcript, file page 72, lines 37-41
- Official Supreme Court Transcript — file page 72, lines 9-9 — Transcript, file page 72, lines 9-9
- Official Supreme Court Transcript — file page 73, lines 11-15 — Transcript, file page 73, lines 11-15
- Official Supreme Court Transcript — file page 73, lines 17-9 — Transcript, file page 73, lines 17-9
- Official Supreme Court Transcript — file page 74, lines 33-35 — Transcript, file page 74, lines 33-35
- Official Supreme Court Transcript — file page 74, lines 37-13 — Transcript, file page 74, lines 37-13
- Official Supreme Court Transcript — file page 75, lines 17-19 — Transcript, file page 75, lines 17-19
- Official Supreme Court Transcript — file page 75, lines 27-27 — Transcript, file page 75, lines 27-27
- Official Supreme Court Transcript — file page 76, lines 41-49 — Transcript, file page 76, lines 41-49
- Official Supreme Court Transcript — file page 77, lines 45-53 — Transcript, file page 77, lines 45-53
- Official Supreme Court Transcript — file page 78, lines 15-17 — Transcript, file page 78, lines 15-17
- Official Supreme Court Transcript — file page 8, lines 7-35 — Transcript, file page 8, lines 7-35
- Official Supreme Court Transcript — file page 9, lines 19-27 — Transcript, file page 9, lines 19-27
- Official Supreme Court Transcript — file page 9, lines 41-51 — Transcript, file page 9, lines 41-51
Why it matters
The ruling could shape how much money homeowners receive when governments sell their property to collect unpaid taxes, and whether foreclosure sales must reflect market value.
Official sources for this section
- Official Supreme Court Transcript — file page 116, lines 33-17 — Transcript, file page 116, lines 33-17
- Official Supreme Court Transcript — file page 5, lines 23-53 — Transcript, file page 5, lines 23-53
- Official Supreme Court Transcript — file page 61, lines 45-35 — Transcript, file page 61, lines 45-35
- Official Supreme Court Transcript — file page 71, lines 27-33 — Transcript, file page 71, lines 27-33
- Official Supreme Court Transcript — file page 92, lines 35-25 — Transcript, file page 92, lines 35-25
What the Court decided
The Supreme Court held that just compensation after a fairly conducted tax sale is measured by the auction sale price, not the property's fair market value. The Court also held that such a tax sale does not violate the Eighth Amendment ban on excessive fines.
The Supreme Court vacated the Sixth Circuit's judgment and remanded the case for further proceedings.
Official sources for this section
- Official Supreme Court Opinion — file page 1, lines 1-1 — Opinion, file page 1, lines 1-1
- Official Supreme Court Opinion — file page 2, lines 1-1 — Opinion, file page 2, lines 1-1
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Verified official opinions and orders
Title and summary sources
- Official Supreme Court Transcript — file page 116, lines 33-17 — Transcript, file page 116, lines 33-17
- Official Supreme Court Transcript — file page 5, lines 23-53 — Transcript, file page 5, lines 23-53
- Official Supreme Court Transcript — file page 61, lines 45-35 — Transcript, file page 61, lines 45-35
- Official Supreme Court Transcript — file page 71, lines 27-33 — Transcript, file page 71, lines 27-33
- Official Supreme Court Transcript — file page 92, lines 35-25 — Transcript, file page 92, lines 35-25
- Official Supreme Court Transcript — file page 116, lines 33-17 — Transcript, file page 116, lines 33-17
- Official Supreme Court Transcript — file page 5, lines 23-53 — Transcript, file page 5, lines 23-53
- Official Supreme Court Transcript — file page 61, lines 45-35 — Transcript, file page 61, lines 45-35
- Official Supreme Court Transcript — file page 71, lines 27-33 — Transcript, file page 71, lines 27-33
- Official Supreme Court Transcript — file page 92, lines 35-25 — Transcript, file page 92, lines 35-25
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Removed an unsupported statement that the Court had not ruled; the available source set did not establish that absence.
- Revision 3 · Official Transcript ·
Correction: Corrected unsupported no-ruling language and clarified that the article's disposition summary is incomplete.
- Revision 4 · Post Opinion ·
Correction: Added the holding and disposition from the verified official Court opinion.
- Revision 5 · Post Opinion ·
Correction: Migrated to the dated official Court activity contract without model use.