Dykema Files Amicus Brief in Crucial Michigan Property Tax Case Before U.S. Supreme Court

Dykema, a leading national law firm, submitted an amicus curiae brief in support of Respondent Isabella County, Michigan, in the pending U.S. Supreme Court case Pung v. Isabella County. The case asks the Court to consider whether longstanding state and local property tax foreclosure systems must be restructured under a federally-mandated fair market value standard and whether routine tax assessment and collection practices are subject to the Excessive Fines Clause of the Eighth Amendment.

In Pung, the Petitioner urges the Court to extend its 2023 decision in Tyler v. Hennepin County by requiring states to compensate former property owners based on asserted fair market value rather than the proceeds generated through a compelled tax foreclosure sale. The Petitioner also contends that tax assessments and enforcement mechanisms are punitive in nature and therefore subject to Eighth Amendment scrutiny.

In their brief, the amici—represented by Dykema—argue that such an expansion would improperly federalize state tax administration, undermine legislative autonomy, and destabilize carefully structured property tax systems relied upon by states and local governments nationwide. The brief emphasizes that Tyler addressed only the existence of a property interest in surplus proceeds, not the adoption of a constitutional valuation mandate, and warns that imposing a one-size-fits-all fair market value rule would generate extensive litigation and disrupt the administrability and finality essential to state tax foreclosure systems.

“The issues raised in Pung go well beyond any single foreclosure or county,” said Theodore W. Seitz, a Member in Dykema’s Lansing office and counsel of record for the amici. “A ruling requiring fair market value compensation in tax foreclosure cases would fundamentally alter how states administer property taxes and could force widespread legislative reform, particularly in Michigan. The Constitution does not require that result, and Tyler should not be misread to compel it.”

The amicus brief highlights Michigan’s existing statutory framework, which already recognizes and protects surplus interests through a court-supervised post-sale claims process, while preserving the administrability and finality necessary to fund essential public services such as schools, public safety, infrastructure, and public health. The brief further cautions that extending the Excessive Fines Clause to routine tax collection would blur the line between civil revenue enforcement and punitive sanctions, with far-reaching consequences for state and local governments.

The amici’s position has garnered broad national and state-level support. Numerous additional amicus briefs have been filed in support of Isabella County, including submissions from the National Association of Counties and a coalition of state attorneys general, underscoring the significance of the issues before the Court and their potential impact on state and local governance.

The Dykema team was led by Ted Seitz and Chantel Febus with support from James Azadian, Andrew Hussey, Monika Harris, and David Ter-Petrosyan.

You can view the brief here.

About Amici

The amicus curiae brief was submitted by Dykema on behalf of the Michigan Association of Counties (MAC), the Michigan Municipal League (MML), the Michigan Townships Association (MTA), and the Michigan Association of County Treasurers (MACT) in support of Respondent Isabella County, Michigan, in the pending U.S. Supreme Court case Pung v. Isabella County.

MAC is a statewide nonprofit association that consists of 83 member Michigan Counties dedicated to representing the public policy interests of Michigan’s counties and their elected commissioners. MML is a nonprofit corporation composed of more than 520 member cities and villages, empowering local governments to effectively serve their constituents by developing unified policies on municipal issues. MTA is a nonprofit corporation consisting of more than 1,225 member townships that provides education, information, and guidance to township officials to promote the efficient and knowledgeable administration of township government services under state law, including the assessing and collecting of taxes. MACT is a nonprofit corporation with members including the elected treasurers of each of Michigan’s 83 counties, who are tasked with working with interest holders to avoid foreclosure for failure to pay property taxes.