Story perspectives

Supreme Court Orders Isabella County Pay $76K to Pung Estate

6/25/2026

Summary

Supreme Court Orders Compensation

On June 23, 2026 the U.S. Supreme Court ordered Isabella County to pay the Pung estate the $76,008 tax-sale price.
The Court held Fifth Amendment just compensation equals that price, giving the estate about $73,766 after Michael Pung’s $2,241.93 tax debt on a $194,400-assessed home.
A unanimous 9-0 opinion by Justice Samuel Alito rejected the Excessive Fines claim and remanded the case to the Sixth Circuit to review the auction.

Summary

Supreme Court Bars

Supreme Court tied Pung v. Isabella County to 2023 Tyler v. Hennepin County ruling that barred local governments from keeping surplus tax-sale proceeds.
In Tyler, the Court found Hennepin County kept $25,000 beyond the $15,000 tax levy, violating the Fifth Amendment.
By vacating the Sixth Circuit judgment and remanding, the Court ordered lower courts to examine tax-sale procedural fairness.
Analysts say the rulings could reshape municipal tax-sale auction practices nationwide.

Summary

Thomas Overturns Denial

Justice Clarence Thomas, with Justice Neil Gorsuch, wrote a concurring opinion that the county wrongly denied the Pungs the principal-residence exemption despite tax payments.
The auction price of $76,008 was under 40 % of the $194,400 assessment.
The Court remanded the case for a lower-court review of auction fairness, while Pacific Legal Foundation vice president Larry Salzman said Pungs won the right to continue their fight after prevailing on the exemption.

History

Historical Context

The 2005 Supreme Court ruling in Kelo v. City of New London, authored by Justice John Paul Stevens, broadened eminent-domain to include economic-development takings. The decision spurred 47 states to expand, and 12 to amend, their eminent-domain limits. Today, the Court’s precedent underlies the Pung v. Isabella County dispute, where plaintiffs cite Kelo to demand just compensation.

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Supreme Court Orders Compensation

On June 23, 2026 the U.S. Supreme Court ordered Isabella County to pay the Pung estate the $76,008 tax-sale price.
The Court held Fifth Amendment just compensation equals that price, giving the estate about $73,766 after Michael Pung’s $2,241.93 tax debt on a $194,400-assessed home.
A unanimous 9-0 opinion by Justice Samuel Alito rejected the Excessive Fines claim and remanded the case to the Sixth Circuit to review the auction.

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