OLC Attorney Heads to the U.S. Supreme Court in Landmark Property Rights Case

Attorney Philip L. Ellison of Outside Legal Counsel PLC will now take a Michigan property-rights cases to the Supreme Court of the United States, after the justices granted review in the case involving a Mount Pleasant area property and a never-relenting county government.

The case arises from the loss of the Pung family home in Isabella County over roughly $2,000 in alleged back taxes and fees—amounts later determined not to be owed. Despite the property’s fair market value of nearly $200,000, the county seized it, sold it at tax auction for $76,008, and kept all of the proceeds. The Pung estate was awarded only the “surplus” from that auction, not the full value of the home.

Ellison petitioned the Supreme Court to review the Sixth Circuit’s decision, which denied full compensation and refused rehearing en banc earlier this year. The petition raises two core constitutional questions: whether “just compensation” under the Fifth Amendment means fair market value rather than a discounted auction price, and whether such a drastic forfeiture amounts to an excessive fine under the Eighth Amendment.

“This case is about more than one family’s home,” Ellison explained. “It’s about making sure government cannot profit from taking property at fire-sale prices. The Constitution promises just compensation, and that means full value, not pennies on the dollar.”

Ellison is no stranger to this fight. In 2023, he secured the first federal appellate win in this area in Freed v. Thomas, a Sixth Circuit decision that struck down Michigan counties’ practice of keeping surplus tax-foreclosure proceeds as unconstitutional. That groundbreaking ruling laid the foundation for subsequent challenges, including the current Pung litigation.

The case also follows the Supreme Court’s 2023 decision in Tyler v. Hennepin County, which confirmed that keeping surplus profits violates the Takings Clause. Yet, Tyler did not address how to calculate compensation when properties are sold for less than market value at foreclosure auctions. The Pung case squarely presents that question, asking the Court to ensure homeowners are made whole.

Briefing in the case will proceed over the coming months, with oral arguments expected later in the Court’s term. A decision is likely to have sweeping implications, not only for Michigan homeowners but for tax-foreclosure regimes nationwide.

Outside Legal Counsel, based in Hemlock, Michigan, is a specialty firm dedicated to civil rights and property-rights litigation. Ellison has built a statewide reputation for challenging governmental overreach and protecting constitutional rights.

For more information and case documents, visit: www.olcplc.com/cases/pung.