On Thursday, May 25, 2023, the Supreme Court issued a unanimous decision in Tyler v. Hennepin County, Minnesota, a landmark case addressing property rights under the Takings Clause. The case specifically focuses on the issue of "home equity theft," which refers to a practice of local governments seizing a property’s entire value to settle a much smaller delinquent property tax debt.

Hennepin County foreclosed on Geraldine Tyler's home to cover her delinquent property taxes, having sold the home for $40,000 and retained the $25,000 surplus as profit. Tyler argued that the county could not take the equity in her home and asked the Supreme Court to declare the forfeiture of her home's equity as an unconstitutional taking and excessive fine. The county maintained that Tyler had sufficient time to pay her taxes and was not entitled to any refund.

The Court unanimously ruled that such practices qualify as takings requiring the payment of "just compensation" under the Takings Clause of the Fifth Amendment. It also concluded that state law is not the sole source of the definition of property rights under the Takings Clause, and therefore state governments cannot seize private property without compensation simply by redefining it as the state's property.

Listen to Tony Francois's analysis of the decision and discussion the potential implications from this landmark ruling.

Featuring:
--Tony Francois, Partner, Briscoe Ivester & Bazel