The Volokh Conspiracy
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Unusual Cross-Ideological Agreement in Tyler v. Hennepin County
Takings cases often divide opinion along left-right ideological lines. The home equity theft case argued before the Supreme Court today is a rare exception.

This morning, the Supreme Court heard oral arguments in Tyler v. Hennepin County, an important Takings Clause case involving the practice of "home equity theft," under which local governments can seize the entire value of a property in order to pay off a much smaller delinquent property tax debt. Geraldine Tyler, the plaintiff in the case, is a 94-year-old widow whose home, valued at $40,000, was seized by the County government after she was unable to pay off $15,000 in property taxes, penalties, interest, and fees. The County then proceeded to keep the entire $40,000 for itself, as Minnesota state law allows it to do. Tyler contends this violates the Takings Clause of the Fifth Amendment, which requires the government to pay "just compensation" anytime it takes private property. I went over the issues in the case here.
Takings Clause cases often divide opinion along predictable left-right ideological lines. Strikingly, however, this case features a broad cross-ideological coalition supporting the property owner. Ilya Shapiro of the Manhattan Institute (reminder: he is a different person from me), has a helpful summary of the wide range of groups filing amicus briefs supporting Tyler:
Progressive groups such as the Constitutional Accountability Center are aligned with conservative groups such as the Claremont Institute's Center for Constitutional Jurisprudence. The American Civil Liberties Union is on a brief with the Cato Institute. The National Taxpayers Union Foundation, AARP, Chamber of Commerce, National Association of Home Builders, National Association of Realtors, National Consumer Law Center, and Public Citizen have all weighed in to help Tyler, as have disability advocates and four of Minnesota's congressional representatives. Hennepin County, meanwhile, is supported mainly by state and municipal governments and related associations.
My organization, the Manhattan Institute, joined the Buckeye Institute, the National Federation of Independent Business, and three other groups on a brief supporting Tyler.
I rarely agree with either the AARP or the right-wing Claremont Institute on much of anything. But in this case, I find myself in the highly unusual position of agreeing with both of them simultaneously. The AARP brief, in particular, is absolutely right to point out that elderly homeowners of modest means are particularly vulnerable to home equity theft, especially those who also suffer from declining health and mental capacity.
Much of the political left has a long history of hostility to judicial protection of property rights. But this issue is clearly an exception. For their part, many conservatives have turned against property rights on a variety of issues, in recent years. But not here.
What accounts for the unusual left-right agreement here? I think progressive groups are willing to back Tyler because home equity theft disproportionately harms the poor, elderly, and minorities, and because curbing it is unlikely to impede various types of land-use regulation that the left favors (except in so far as the latter can be facilitated by allowing government to redefine private property rights out of existence, as the lower court ruling allowed Minnesota to do here).
Many conservatives are willing to set aside their traditional support for property rights when they stand in the way of right-wing culture war causes, such as combating vaccine mandates, preventing private property owners from barring guns from their land, and others. But no such culture war issue is at stake here.
As Shapiro notes, almost all the amicus briefs supporting the government in Tyler were filed by local government and tax collection interests, who have an obvious narrowly self-interested stake in the issue.
It's worth noting that only three states joined an amicus brief supporting Hennepin County, one of which is the state of Minnesota, where the county is located. There are twelve states with laws authorizing home equity theft, plus the District of Columbia. The other nine were apparently unwilling to weigh in to support their own laws. Interestingly, a much larger group of states - eight in all - filed an amicus brief supporting the property owner. It's unusual to see state governments taking the side of property owners in takings cases, as that limits the states' own powers.
I should emphasize that the lopsided division of amicus briefs doesn't by itself prove that Tyler deserves to win. An unpopular minority view can sometimes be right on the merits. In this case, however, the Takings Clause argument for the property owner is very strong, and a decision the other way would set a dangerous precedent.
I will post an analysis of the oral argument later today. But my tentative initial view is that most of the justices seem likely to side with Tyler.
NOTE: Geraldine Tyler is represented by the Pacific Legal Foundation, which is also my wife's employer. She, however, is not one of the attorneys working on the case.
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Whatever gave anyone the idea that the government believes that you actually own anything.
One oddity from Kelo was the number of liberals that thought it was the five conservative justices who voted in the majority.
On the main Reason forums, which are replete with very right-wing posters, and where anyone who doesn't agree with them is deemed to be a left-winger, when I criticised Kelo, a couple of right-wingers posted under the impression that I must not have known who voted which way and so had made a mistake.
I can’t post over there anymore. I criticize Trump and just get constantly excoriated. Not worth the effort because there’s nobody over there to reach. Something like 3/4 of the board ended up on my mute list before I gave up.
Poor you.
Its a pretty clear case of a taking prohibited by 5A.
I have had several clients over the last 10 or so years develop dementia and other mental health issues, 2 of which became will contests due to execution of new will post loss of mental capacity.
Our local state representative (d) offices two doors from my office. Specifically with regard to property taxes owed by the elderly, I have discussed with him, getting state legislation to provide more robust protection for the elderly such as reduced penalties, pause on collection activity, pause on foreclosure. On both occasions, providing more robust protection was a non starter with this state representative
.
Seems like, unjust enrichment would apply here.
Property tax is also theft. An "owner" is paying an annual rental fee for property he or she "owns".
Property tax wouldn't bother me nearly as much, other than being another thieving tax, except that non-payment results in confiscating the property rather than merely being just another debt like with other taxes. That's what shows property tax is treated as rent, not a tax.
Then all taxes are "theft", which is such a profoundly silly position that actual libertarians make it from time to time (as do assorted other kooks).
Hey. Does everyone remember the property tax moratorium that went into effect along with the rent moratorium?
Oh, wait that didn't happen. Landlords still had to pay property taxes on properties they couldn't collect rent on.
And how do you propose to fund city government? Basic services don't fund themselves.
I agree there need to be more protections in place for elderly people and people with dementia, though this is not a problem just for government. Banks foreclose on mortgages and walk away with equity under similar conditions all the time. I am right now trying to get an elderly man's house back after the bank foreclosed on it because he was in a group home dealing with mental health issues for a year and nobody was paying the mortgage while he was there.
But the balance that needs to be struck is this: City government, and banks, need to be paid what they are owed. Homeowners should not lose their houses over circumstances like dementia. There is middle ground.
"City government, and banks, need to be paid what they are owed."
Does that apply to student loan lenders also?
It might if that were the subject of this thread rather than your usual what aboutism.
If the statement above is true, it needs to be true in all cases. Just pointing that out.
Not necessarily. There might be some case in which the facts or legal principles are completely different so that a different outcome is justified. The only way to know if you're right would be to look at every possible case.
But there's a more basic problem with what-abouting anyway, and that is that it makes it impossible to have a conversation about anything. This thread is about property takings. You're now trying to hijack it to talk about Biden's student loan forgiveness program. If your hijack is successful, we will no longer be talking about property takings. So, if you want to talk about student loan forgiveness, start your own thread.
” This thread is about property takings. ” …by government. You injected bank foreclosures and stated government and lenders needed to be paid. I agree with that. If my statement is too far off point I apologize.
"And how do you propose to fund city government? "
Income taxes.
Just to be clear: Suppose my annual real estate tax is 3k. You would support a new municipal income tax in which I would end up paying at least 3k to make up the shortfall from no property taxes? Because if you're going to put local services on income tax, income tax will go up, probably significantly.
If you have income to support the tax, sure. Not social security though.
Another income tax is surely not the answer.
Bob just wants to sound provocative, he doesn't mean it. He doesn't mean any of it.
Your income would determine the amount of tax you pay, not the amount of property tax no longer being collected. Could be more, could be less. For a retired person, you'd expect the income tax to be less. Your hypothetical treats it more like a capitation tax.
Sales tax.
This blog attracts mostly disaffected misfits, fringe malcontents, unreconstructed bigots, and (selective) anti-government cranks. There are relatively few of these losers remaining in society -- and fewer all the time -- but they dominate this audience.
If they want to make a few bucks, the Conspirators could probably sign the John Birch Society and Ayn Rand Institute as sponsors with two quick calls.
Sure, AIDS. Meanwhile, you're losing the global culture war because your values are so stupid and false the entire world can see you don't believe their implications yourself. Case in point: you don't believe your claims about equality and multiculturalism even vis--a-vis your own countrymen.
Now, will you hurry up and die off please?
I just finished living 10 years in Portugal - a fairly socialist country. There is hardly any property or income taxes. Everything is funded by sales (VAT) taxes. Which EVERYONE has to pay. Yeah its high: 22-27%. But, to me, its fair.
Whilst the EU transfer payments amount to what for Portugal...?
Local government rips off old lady. Decent people of both sides of the ideological spectrum are outraged. Law professor wonders why.
a. Local govt rips off old lady. b. Decent people of both sides of the ideological spectrum are outraged. c. It’s shockingly rare for both sides of the spectrum to be outraged at the same time. d. Law professor wonders why it happened in this case. e. Bored Lawyer makes fun of law professor for highlighting this unusual situation. (f. Santamonica makes fun of Bored Lawyer. g. ______ makes fun of Santamonica for making fun of BL. [repeat ad nauseum] ) 🙂
"It’s shockingly rare for both sides of the spectrum to be outraged at the same time."
Not really. Lots of things happen in life that all decent people can oppose. It's just that usually it's so obviously wrong, it does not make it court, let alone to SCOTUS. SCOTUS cases usually present a clash of interests or values that is not that obvious to resolve.
HaHa!
For those of y’all defending regulation in the other thread, this is the kind of regulating that make people not like/trust the government.
And it’s happening all over, in many cases worse than this. Look up Benny Coleman in DC. A 76 year old with dementia. They took his house over a $130 bill, sold it for $197,000, and kept all the money. Meanwhile, he slept on the porch for a couple of months thinking he’d locked himself out.
Bevis - As I noted above, I have spoken with a texas state congressman (d) about providing more robust protection for that very situation. I got no where with the state congressman having any interest in protection from similar abuse.
It already exists. In bottom scrapin’ Texas if you’re 65 or older you can defer your property taxes in total or in part and let your estate pay them off with 5% interest. For your primary homestead. No eviction.
You changed scope right in the middle of your first sentence.
No one is defending all regulations. That is a strawman.
In addition to the takings argument, once could also look at this as an unenforceable penalty.
If John Q Public tried to enforce a contract with a provision like this, he'd be laughed out of court. In fact, he'd be lucky to avoid sanctions and some sort of consumer fraud prosecution.
I sure wish that Professor Somin would stop using derogatory labels like
“Right Wing” . The ad hominem argument detracts from his otherwise scholarly arguments.
I agree. Most of the time, "right-wing" is a euphemism and "bigots and antisocial culture war casualties" would be better.
HaHa!
Did she have any equity in the condo by the time it was sold? If the mortgage hadn't been paid and the HOA fees were owing, that might have wiped out any equity
An interesting question. Given how governments rarely give up anything voluntarily one would have to assume a lender and the HOA would have to file suit to make a claim.
Probably cheaper to just write it off.
I read somewhere (but cannot find it now) that the mortgage and HOA assessment deficiencies exceeded $50k, including penalty(ies) and interest.
This was the closest I could find with a quick search:
“In opposition, the County contends first that Tyler does not have Article III standing to bring her claim because she failed to allege that she has equity in the property and did not mention the substantial private liens encumbering the property. The County notes that the public record indicated that two separate liens from Tyler’s mortgage and her homeowner’s association substantially encumbered the property. Thus, the County asserts that Tyler did not establish sufficient equity in her property to satisfy the requirements for standing.”https://www.law.cornell.edu/supct/cert/22-166
The specifics might be found in the government’s responsive filing(s)….
The state tried to argue for the first time at SCOTUS that she lacked standing because she didn't have any equity because of other liens. That is (a) based on stuff not in the record; and (b) probably wrong legally even if correct factually. But in any case SCOTUS wasn't interested in that argument in the slightest, and shut Katyal down immediately when he tried to raise it.
"The 8th U.S. Circuit Court of Appeals affirmed the district court’s dismissal of her case because Minnesota law declared that the home equity was not Tyler’s private property and so there was no taking."
Okay, fine, let's stipulate that the homeowner has no private property right in the home equity. How then does the county get its fingers on that equity without first taking the property itself? Doesn't it have to take the property before it can sell it and thus collect that sweet, sweet equity?
It does take the property. Minnesota's approach is that it transfers title of the property to itself, and then auctions it off. Since it is now the owner, it gets all the proceeds; the (former) owner has no claim on any portion of them.
But, it contends that this is not a Taking; it is a forfeiture by the property owner for not having paid property taxes.
Got it.
So is the forfeiture of the asset the fine for not paying the lien? If the value of the asset is three times the amount of the lien, would the 8th amendment's proscription against excessive fines be applicable?
I'm just a long-time lurker on the VC, and my only legal knowledge comes from reading this blog and the comments. But the (to me) obvious injustice of the case riled me up enough to come out of lurk mode and ask some questions/make some comments.
You are asking the right questions. In fact, the fallback argument that the woman is relying on is that if this is a fine rather than a Taking, then the 8th amendment's prohibition on excessive fines applies, just as you suggest.
The state's rejoinder was that the confiscation of the entire property isn't punitive, and therefore the 8th amendment doesn't apply. The woman argues that it is punitive. A couple of justices appeared to agree with that argument. But everyone agrees that if she wins on her primary Taking argument, the 8th amendment argument need not be resolved. And I'm pretty sure after today's argument that she's going to win 9-0 on the Taking argument.
I was a government tax hearing officer for 10 years. Cases like this make me burn with anger. She only owed $2,300 in taxes. She stopped living in the condo and stopped paying her taxes for 5 years. At the end of the 5 year period, the interest (which ranged from 10% to 28% per annum) and penalties totaled $12,700. I was told that I was “not a good team player” because I objected to results like this. In my hearings, I would reach fair results. Pay the tax of $2,300. Penalties of $500. Interest at 6% would be about $800. So put the lady on a payment plan to pay off a balance of $4,600 in taxes, interest, and penalties. If she can’t do that, then sell the house at auction and give her the $35,400 excess.
But my superiors thought I was a “bad person” and “not a good team player” because I did not want to rack up the interest and penalties as high as possible. I don’t know how many thousands of corporate franchise tax cases I had where the actual tax owed was $50…the statutory minimum amount. But a company would fail to file a return one year (or the department lost the return that had been filed). We would assess tax of $2,000 plus penalty of $700 and interest of $150. What an abomination. In the few cases where I had jurisdiction and where the taxpayers appeared, I would reduce the assessments to tax of $50, penalty of $25, and interest of…$5 to $6. But if the taxpayers did not respond in time, I had no jurisdiction and the file went up to the Attorney General’s office as an assessment of $2,800.
The sad thing is that if the original bill had been $82 and change, the people would have paid it. But because it was $2,800, they did not. Maybe they panicked. Maybe they did not believe it. Maybe they hoped it would go away. My supervisors hated me, but eventually we had a change of administration and the new bosses decided that it was a waste of time and effort to try and collect on these cases. They gave me authority to change these assessments en mass to $82.
This case gives me the same outrage. Pardon my rant. This kind of abuse enrages me.
In this era the government - any level and any party - no longer sees us as citizens with rights to be protected. To be fair, it’s also true that most companies don’t see us as customers to be served.
To both, we have mostly become teats to be milked. At every opportunity. It sounds paranoid, but the attitudes have definitely changed.
Many conservatives are willing to set aside their traditional support for property rights when they stand in the way of right-wing culture war causes, such as combating vaccine mandates, preventing private property owners from barring guns from their land, and others.
Somin, as is his wont, tries to draw an equivalence between the government’s taking of someone’s home and the government’s passing of anti-discrimination laws and modest regulations on businesses. In his typical snide manner, he accuses conservatives of inconsistency, while patting himself on the back for his own consistency. It is a foolish consistency, and you know what Emerson said about that. Homes and businesses are different, and the former are more sacred and deserve more protection. When one opens a business, he agrees to a modicum of state regulation. I do not object to surprise health inspections at restaurants; I would object to them at private homes.
But no such culture war issue is at stake here.
Are you sure about that? If property rights don’t come from the government, where do they come from? Do they precede government? Are they what one might term “natural rights”? Are there other such rights? Cannot the government modify these rights or are they “unalienable”, to coin a phrase? Are we perhaps endowed with these rights by some Being? Gee, I wonder if an affirmative answer to these questions might have any implications beyond this case.
He's not drawing an equivalency as such, he's legitimately pointing out an inconsistency that cannot just be waved away as you do. States are, in effect, legalising a specific kind of trespass, for no good reason and without any relevant state interest.
Of course, requiring businesses to make an accommodation to its employees or customers is alright as long as there's a "good reason", which I imagine means a reason that meets with your approval.
Though I think it is clear that Somin believes all anti-discrimination laws are Takings, though he does not quite have the guts to plainly say so. This argument was made by the defendants (regarding being forced to serve black customers) in Heart of Atlanta Motel v. United State, 379 U.S. 241 (1964), but was, of course, dismissed by the Court with little discussion. "In the past this Court has consistently held that regulation of the use of property by the Federal Government or by the States does not violate either the Fifth or the Fourteenth Amendment." Id. at 277.
I'm willing to modestly wager that this will end up an 8-1 decision (possibly 7-2) and Thomas will be in dissent (in favor of Hennepin). It's just the kind of case where his rare inclination to favor government power over the individual is liable to appear.
I'll take that bet. This is a 9-0 case, with a possible concurrence in the judgment by Sotomayor.
Justice Thomas, who joined the main dissent in Kelo and wrote an even more scathing one of his own, would literally be the least likely justice to side with the government in this case.
Kelo v. City of New London, 545 U.S. 469, 521 (2005) (Thomas, J., dissenting).
That doesn't much sound like a man keen on siding with the government in a Takings case against a little old lady.
(Remember who the bad guys were in Kelo? Our good friends at Pfizer, in the news lately for other things. Big Pharma, is there nothing you can't do?)
Sure, but this isn’t public use, it is collection of a tax debt and isn’t the real debate about the county keeping what was in excess of the debt? And I agree he shouldn’t, particularly based on consistency, but I just have that weird feeling that he could – almost as though he doesn’t really like being in a unanimous majority or just has a need to be contrarian. Along the lines of Safford Unified School District v. Redding.
It would help if you either NAMED the 12 states, or posted a direct link to a list of them -- as while it is nice to know all the great things you folks do, sometimes one merely wants to see the list of states...
In the time it took you to post that, you could have clicked on the two links that would take you to that information.