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U.S. Supreme Court Oral Arguments

Pung v. Isabella County

U.S. Supreme Court Oral Arguments

Oyez

Government & Organizations, National

4.7661 Ratings

🗓️ 25 February 2026

⏱️ 105 minutes

🧾️ Download transcript

Summary

A case in which the Court will decide (1) whether taking and selling a home to satisfy a debt to the government, and keeping the surplus value as a windfall, violates the Takings Clause of the Fifth Amendment when the compensation is based on the artificially depressed auction sale price rather than the property's fair market value, and (2) whether the government’s forfeiture of real property whose value significantly exceeds the tax debt constitutes an excessive fine under the Eighth Amendment, particularly when the tax debt itself was disputed.

Transcript

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0:00.0

We will hear argument this morning in case 2595, Hung v. Isabella County.

0:07.4

Mr. Ellison.

0:09.1

Mr. Chief Justice, and may it please the Court, the Fifth Amendment requires just compensation be measured by the value of what's taken.

0:18.1

The Sixth Circuit's categorical rule, reducing just compensation to surplus

0:23.3

auction proceeds in all instances was wrong. This Court has repeatedly confirmed that when the

0:29.8

government takes property, the constitutional calculus begins with its fair market value. That is

0:35.7

measured from the time of the take. The error here is clear.

0:39.6

The Pung home was worth $194,400. The tax debt was roughly $2,200. Just compensation meant

0:47.7

returning remaining equity. The lower courts erred when holding that the later auction price

0:53.8

of just $76,000 less the debt

0:56.8

was categorically the only just compensation owed.

1:00.7

But this court said it directly in Jacobs, an owner is owed just compensation, not inadequate

1:06.7

compensation.

1:08.3

Following Tyler, there are no windfalls to the government. This case now asked the

1:12.7

court to confirm the other half, that the Constitution likewise forbids confiscatory losses

1:18.0

when being imposed upon a former owner. Federal courts should consider all relevant

1:24.4

evidence of market value and determine whether just compensation has in fact been paid.

1:30.7

In addition to the Fifth Amendment, the Eighth Amendment's excessive fines clause provides a backstop as well.

1:36.2

Taking a six-figure home to punish over a small, four-figured tax constitutes a fine

1:41.4

and was sufficiently alleged to be grossly disproportionate to get past the initial pleading stage.

1:47.2

The judgment below should be reversed, and I welcome the Court's questions.

1:51.0

What do you do with the fact that the English and American legal traditions seem to permit these sorts of foreclosures.

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