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What Does “Just Compensation” Mean?
AARP Foundation files amicus brief in a Supreme Court case testing how homeowners are compensated in tax seizures.
When a homeowner has their property seized to pay a tax debt, they’re supposed to be compensated for their equity in the home, after the taxes are collected. The Takings Clause in the U.S. Constitution stipulates that homeowners are entitled to “just compensation,” and long-standing court precedents hold that this compensation should be based on the fair market value of the home.
But in the case of Pung v. Isabella County, MI, the seized property was liquidated in a so-called fire sale auction, well below the fair market value of the home, and that sale price was used as the basis for compensation. As a result, years of equity the homeowner had accrued were wiped out.
In its amicus brief, AARP Foundation argues that the Supreme Court should confirm that fair market value must continue to be the standard for “just compensation” in such situations.
AARP Foundation 2025 Supreme Court Preview
The Supreme Court often hears cases affecting the lives of people over 50. Read our review of key cases coming before the Court this year and likely to come in the future.