Petition for Writ of Certiorari — Lynette Hathon, et al., Petitioners v. Michigan
Supreme Court briefOct 16, 2025
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No. __________
In the
Supreme Court of the United States
LYNETTE HATHON and AMY JO DENKINS,
Individually and on Behalf of All Others Similarly
Situated,
Petitioners,
v.
STATE OF MICHIGAN,
Respondent.
ON PETITION FOR A WRIT OF CERTIORARI TO
THE MICHIGAN SUPREME COURT
PETITION FOR A WRIT OF CERTIORARI
E. POWELL MILLER
MILLER LAW FIRM
950 West University Dr.
Rochester, MI 48307
MATTHEW E. GRONDA
GRONDA PLC
4800 Fashion Sq. Blvd.
Saginaw, MI 48604
PHILIP L. ELLISON
Counsel of Record
OUTSIDE LEGAL COUNSEL PLC
530 West Saginaw St.
Hemlock, MI 48626
(989) 642-0055
pellison@olcplc.com
LEGAL PRINTERS LLC ! Washington, DC ! 202-747-2400 ! legalprinters.com
QUESTION PRESENTED
During the last Term, this Court in DeVillier v.
Texas (No. 22-913) granted certiorari to decide
whether the Takings Clause itself authorizes a
property owner to sue a State directly for just
compensation when the legislature has not created a
statutory cause of action. The Court ultimately
declined to resolve the question because Texas law
supplied an independent state common-law remedy,
thus leaving for another day the central issue of
whether the Takings Clause is judicially enforceable
on its own terms. That question is now ripe. The
Michigan Supreme Court has declared that the Fifth
Amendment itself provides no cause of action in
Michigan and barred inverse condemnation in full,
requiring property owners to rely solely on a statutory
scheme that affirmatively withholds and denies full
just compensation. The federal question avoided in
DeVillier is now squarely presented.
The question presented is:
Whether the Takings Clause of the Fifth
Amendment is a self-executing stand-alone claim that
permits property owners to sue a State directly for
just compensation when the State otherwise
mandates reliance on an inadequate statutory
remedy.
i
PARTIES TO THE PROCEEDING
Petitioners (plaintiffs-appellees below) are
Lynette Hathon and Amy Jo Denkins individually
and as class representatives. Respondent (defendantappellant below) is the State of Michigan.
RELATED PROCEEDINGS
Hathon v. State of Michigan, No. 168233,
(Mich. Mar. 20, 2025)
Hathon v. State of Michigan, No. 374332,
(Mich. Ct. App. Feb. 20, 2025)
Hathon v. State of Michigan, No. 19-000023-MZ,
(Mich. Ct. Claims. Jan. 15, 2025)
ii
TABLE OF CONTENTS
QUESTION PRESENTED ......................................... i
PARTIES TO THE PROCEEDING ........................... ii
RELATED PROCEEDINGS ...................................... ii
TABLE OF AUTHORITIES .......................................v
PETITION FOR A WRIT OF CERTIORARI ............ 1
OPINIONS BELOW ................................................... 1
JURISDICTION ......................................................... 1
CONSTITUTIONAL PROVISION INVOLVED ....... 2
INTRODUCTION ...................................................... 2
STATEMENT OF THE CASE ................................... 3
SUMMARY OF ARGUMENT.................................... 8
REASONS FOR GRANTING THE PETITION ........ 9
I.
The Michigan Supreme Court’s
Decision Conflicts With This Court’s
Precedent Holding the Takings Clause
to Be Self-Executing ........................... 10
II.
The Decision Below Both Deepens
Confirms the Division Highlighted in
DeVillier .............................................. 12
iii
III.
The Case Presents Federal Questions
of Exceptional Importance ................. 15
IV.
Hathon Squarely Presents the
Question DeVillier Avoided and
Pung Cannot Resolve.......................... 17
V.
This Case Is an Ideal Vehicle ............. 18
VI.
Without Review, States Can Erase
the Fifth Amendment by Statute ...... 19
CONCLUSION ......................................................... 20
iv
TABLE OF AUTHORITIES
Cases
Azul-Pacifico, Inc. v. City of Los Angeles,
973 F.2d 704 (9th Cir. 1992) .................................... 13
Benson v. State,
710 N.W.2d 131 (S.D. 2006) ..................................... 13
Boise Cascade Corp. v. Bd. of Forestry,
991 P.2d 563 (Or. Ct. App. 1999) ............................. 13
DeVillier v. State of Texas,
63 F.4th 416 (5th Cir. 2023) .............................. 11, 13
DeVillier v. Texas,
144 S. Ct. 938 (2024) .................................................. 9
First English Evangelical Lutheran Church v.
Cnty. of Los Angeles, 482 U.S. 304 (1987) ..... 2, 10, 11
Fulton v. Fulton Cnty. Bd. of Comm’rs,
148 F.4th 1224 (11th Cir. 2025) .............................. 14
Henderson v. City of Columbus,
827 N.W.2d 486 (Neb. 2013) .................................... 13
Horne v. Dep’t of Agric.,
576 U.S. 350 (2015) .................................................. 11
In re Muskegon Cnty. Treasurer for Foreclosure,
348 Mich. App. 678 (2023), petition for writ of
certiorari pending sub nom. Beeman v.
Muskegon Cnty. Treasurer, No. 24-858 (U.S.)........... 6
v
Jacobs v. United States,
290 U.S. 13 (1933) ................................................ 7, 12
Knick v. Twp. of Scott,
588 U.S. 180 (2019) .......................................... 2, 3, 10
Koetter v. Manistee Cnty. Treasurer,
No. 24-1095 (U.S.) (pet. pending) .............................. 6
Manning v. Mining & Minerals Div. of
the Energy, Minerals & Nat. Res. Dep’t,
144 P.3d 87 (N.M. 2006) .......................................... 13
McGee v. Alger Cnty. Treasurer,
No. 25-203 (U.S.) (pet. pending) ................................ 6
O’Connor v. Eubanks,
83 F.4th 1018 (6th Cir. 2023) .................................. 11
Pung v. Isabella Cnty, Mich.,
No. 25-95 (U.S. cert. granted Oct. 3, 2025) ......... 6, 17
Rafaeli, LLC v. Oakland Cnty.,
952 N.W.2d 434 (Mich. 2020) .................................... 5
SDDS, Inc. v. State,
650 N.W.2d 1 (S.D. 2002) ........................................ 13
Seaboard Air Line Ry. v. United States,
261 U.S. 299 (1923) ................................ 10, 11, 15, 20
Tahoe-Sierra Preservation Council, Inc. v. Tahoe
Reg’l Planning Agency, 535 U.S. 302 (2002) .......... 11
vi
Thomas v. Shipka,
818 F.2d 496 (6th Cir. 1987) .................................... 13
Tyler v. Hennepin Cnty., Minn.,
598 U.S. 631 (2023) .................................................... 5
United States v. Lawton,
110 U.S. 146 (1884) .................................................... 6
United States v. Lynah,
188 U.S. 445 (1903) .................................................. 12
Will v. Mich. Dep’t of State Police,
491 U.S. 58 (1989) ................................................ 5, 15
Constitutional Provisions
U.S. Const. amend. V ................................................. 2
Statutes
28 U.S.C. § 1257(a)..................................................... 1
Mich. Comp. Laws § 211.78l ..................................... 7
Mich. Comp. Laws § 211.78t ................................ 7, 15
vii
1
PETITION FOR A WRIT OF CERTIORARI
Petitioners Lynette Hathon and Amy Jo Denkins
seek a writ of certiorari to review the order/judgment
of the Michigan Supreme Court.
OPINIONS BELOW
The order/judgment of the Michigan Supreme
Court (App. 1a-2a) is available at 17 N.W.3d 686
(Mich. 2025). The Michigan Supreme Court’s order
denying reconsideration (App. 1a-2a) is published at
20 N.W.3d 592 (Mich. 2025). The Michigan Court of
Appeals’ order (App. 4a-5a) denying relief to the State
is unpublished. The trial court’s opinion (App. 6a-19a)
is also unpublished.
JURISDICTION
The Michigan Supreme Court entered its
judgment on March 20, 2025, App. 1a-2a, and denied
a timely motion for rehearing on May 22, 2025, App.
20a-21a. On July 30, 2025, Justice Kavanaugh
extended the time to petition for a writ of certiorari to
and including October 19, 2025. This Petition raises
federal questions under the Fifth Amendment to the
United States Constitution. This Court’s jurisdiction
is invoked under 28 U.S.C. § 1257(a).
2
CONSTITUTIONAL PROVISION INVOLVED
The Fifth Amendment to the Constitution
provides, in relevant part, “nor shall private property
be taken for public use without just compensation.”
U.S. Const. amend. V.
INTRODUCTION
For a $5,200 tax debt, Lynette Hathon and her
daughter lost their modest home and more than
$60,000 in equity. Michigan not only kept their
money; it also declared the Constitution itself offlimits as a source of a remedy. This Petition asks
whether a State may self-legislate the Fifth
Amendment out of existence. The answer is simple: it
cannot.
This Court has repeatedly held that the Takings
Clause is self-executing. E.g. First English
Evangelical Lutheran Church v. Cnty. of Los Angeles,
482 U.S. 304, 315 (1987). A property owner acquires
an “irrevocable right to just compensation
immediately upon a taking” and “it is the existence of
the Fifth Amendment right,” not a statutory
provision, “that allows the owner to proceed directly
to” court. Knick v. Twp. of Scott, 588 U.S. 180, 191192 (2019). This means that neither “statutory
recognition” nor “a promise to pay” was ever
necessary to make just compensation enforceable.
First English, 482 U.S. at 315.
3
But Michigan ignored this solemn constitutional
obligation and did the opposite: it barred property
owners from ever invoking the Constitution directly,
requiring them to proceed only under its inadequate
statutorily-created administrative process provided
by Mich. Comp. Laws § 211.78t, even though that
statute fails to fulfill core components of “just
compensation.” By barring constitutional actions
altogether and because Will v. Mich. Dep’t of State
Police foreclosed the forum against the State in
federal court, the decision relegates the Takings
Clause to a “poor relation” of the Bill of Rights,
precisely what this Court rejected in Knick. 588 U.S.
at 189.
This Court should grant the Petition to reaffirm
the Fifth Amendment’s constitutional command.
STATEMENT OF THE CASE
Petitioners Lynette Hathon, and her daughter
Amy Jo Denkins, were co-owners of a modest
residential dwelling located on Michigan Avenue in
Owosso (Shiawassee County), Michigan. The twostory family residence built in 1935 was jointly held
by them as their home. County tax records reflected
that the property had a fair market value of
approximately $67,398 in 2017.
For personal reasons that are not directly
relevant, they fell behind on property taxes of
4
$1,483.53. With added interest, penalties, fees, and
statutory costs, the total delinquency reached $5,200.
Because Shiawassee County’s treasurer refused
to act as the foreclosing governmental unit under the
General Property Tax Act, responsibility for
foreclosure proceedings fell to the State. Acting on
behalf of the State of Michigan, officials with the
Michigan Department of Treasury initiated and
completed the in-rem foreclosure proceedings. Title to
the property was seized in the name of the State of
Michigan, and in August 2018, the home was sold at
public auction to a private purchaser for $28,250. The
distressed tax auction sale not only destroyed more
than $39,000 in Petitioners’ equity but also generated
surplus proceeds of approximately $23,050 above the
outstanding tax debt.
Despite realizing this excess value, the State
retained the equity, including the surplus, for its own
benefit. No refund of the excess equity was provided
to Petitioners. No condemnation proceedings were
initiated, and no just compensation was offered. In
total, nearly $62,200 of Petitioners’ constitutionally
protected equity was extinguished or appropriated by
the State through this process.
Petitioners’ experiences are not unique. They
brought suit on behalf of a putative class of similarly
situated former property owners in eight Michigan
counties – Keweenaw, Luce, Iosco, Mecosta, Clinton,
Shiawassee, Livingston, and Branch – where the
5
State Treasurer, rather than county treasurers who
have “opted-out,” carries out tax foreclosures. In each
instance, the State follows the same process:
foreclosing on homes for minor tax debts, auctioning
properties at depressed sale prices, and retaining all
surplus proceeds beyond the delinquency owed. This
practice strips citizens of their equity built over years
of ownership, without compensation, and without
recourse to any statutory mechanism for recovery.
Foreshadowing the decisions that would later
arrive via Rafaeli, LLC v. Oakland Cnty., 952 N.W.2d
434 (Mich. 2020) and Tyler v. Hennepin Cnty., Minn.,
598 U.S. 631 (2023), Petitioners sued for a Fifth
Amendment taking and an Eighth Amendment
excessive fine. Because of the State’s sovereign
(Eleventh Amendment) immunity from suit in the
federal forum, they brought their case in specialized
state trial court for claims against the State, the
Michigan Court of Claims. And because the State is
not amenable to a claim as a person under Section
1983, Will v. Mich. Dep’t of State Police, 491 U.S. 58,
71 (1989), Hathon and Denkins asserted a direct Fifth
Amendment claim (sometimes called an ‘arising
under’ claim) as well as an inverse condemnation
claim grounded in the Fifth Amendment. The Court
of Claims certified the matter as a class action.
While their case was pending, the Michigan
Supreme Court’s decision in Rafaeli prompted the
Legislature to enact Mich. Comp. Laws § 211.78t.
That statute created a new complicated process for
6
property owners to claim “remaining proceeds” after
a foreclosure sale—but only up to 95% of the surplus,
without interest or attorney fees. Importantly, the
Legislature also declared that 78t is the “exclusive
mechanism” for seeking such funds, purportedly
foreclosing direct constitutional actions forever.
Uniformly, Michigan courts refused takings
challenges demanding just compensation. E.g. In re
Muskegon Cnty. Treasurer for Foreclosure, 348 Mich.
App. 678 (2023), petition for writ of certiorari pending
sub nom. Beeman v. Muskegon Cnty. Treasurer, No.
24-858 (U.S.); see also Koetter v. Manistee Cnty.
Treasurer, No. 24-1095 (U.S.) (pet. pending); McGee v.
Alger Cnty. Treasurer, No. 25-203 (U.S.) (pet.
pending).
The problem in Michigan is readily apparent.
The 78t process defies what the Fifth Amendment
minimally requires. First, it does not provide the full
compensation that is required for a taking. See Pung
v. Isabella Cnty, Mich., No. 25-95 (U.S. cert. granted
Oct. 3, 2025). Second, it only returns ninety five
percent of surplus proceeds in contravention to what
the Fifth Amendment minimally requires, i.e., the
return of full surplus proceeds. United States v.
Lawton, 110 U.S. 146, 150 (1884) (“If he affirms the
propriety of selling or taking more than enough of his
land to pay the tax and penalty and interest and costs,
and applies for the surplus money, he must receive at
least that.” emphasis added). Third, it also denies any
Jacobs-required interest payment or any attorney
7
fees recoupment for legal assistance. Jacobs v. United
States, 290 U.S. 13, 17 (1933).
Likely knowing of its legal shortcomings, the
Michigan Legislature mandated that “[a]n action to
recover any proceeds from the sale or transfer of
property foreclosed for nonpayment of real property
taxes under this act must be brought as provided
under section 78t.” Mich. Comp. Laws § 211.78l(1).
After the Court of Claims recertified the Hathon
class, App. 19a, the State appealed on an emergency
interlocutory basis to the Michigan Supreme Court,
which issued a two-page order without even
permitting class counsel to be heard before ruling. In
that decision, Michigan’s highest court held that 78t
“creates a controlling and structured system for
adjudication of tax-foreclosure disputes as the
exclusive means of obtaining surplus proceeds” and is,
in its view, “the exclusive mechanism for a claimant
to claim and receive any applicable remaining
proceeds under the laws of this state” citing Mich.
Comp. Laws § 211.78t(11). App. 2a.
Therefore, according to the Michigan Supreme
Court, the trial court “lacks authority to create a new
mechanism for processing claims to these proceeds or
to certify a class for that purpose, and it erred by
doing so.” Id. Yet Hathon and Denkins never asked
the Court of Claims to create a new mechanism but
rather rely upon the already-existing Fifth
Amendment mandate for just compensation. App.
8
31a-32 (inverse condemnation) and 33a-34a
(Fifth/Fourteenth Taking claim). Nevertheless, the
Michigan Supreme Court held that class members
“must initiate the statutory process by providing the
foreclosing unit of government notice of their intent to
seek remaining proceeds by March 31, 2025, using a
form prescribed by the Department of Treasury.” App.
3a. It then “remanded the case for entry of an order
denying certification and dismissing the plaintiffs’
claims without prejudice.” Id. What the Michigan
Supreme Court did defies the protections guaranteed
by the Fifth Amendment; as such, this Petition now
follows.
SUMMARY OF ARGUMENT
The Michigan Supreme Court has done what this
Court has said no State may do: it made a federal
constitutional right contingent on state legislation.
By declaring the 78t process the “exclusive
mechanism” for redress, Michigan extinguished the
Takings Clause’s self-executing character recognized
since First English, Jacobs, and Seaboard. This
Petition presents the question DeVillier left open –
whether property owners may invoke the Fifth
Amendment directly when a State denies a complete
remedy. The answer is compelled by text, history, and
precedent alike: yes.
9
REASONS FOR GRANTING THE PETITION
Just one Term ago, this Court granted certiorari
in DeVillier v. Texas to resolve whether “a person
whose property is taken without compensation [may]
seek redress under the self-executing Takings Clause
even if the legislature has not affirmatively provided
them with a cause of action.” 144 S. Ct. 938, 939
(2024). After briefing and argument, however, the
Court concluded that it need not answer the question
because Texas common law independently provided a
state-law cause of action for just compensation. Id. at
942-943. In the absence of a remediless plaintiff, the
Court vacated and remanded.
This case presents the issue that DeVillier
avoided. Unlike in DeVillier, the Michigan Supreme
Court has explicitly foreclosed any direct
constitutional claim, requiring that property owners
proceed exclusively through the statutory procedure
codified at Mich. Comp. Laws § 211.78t. This
precluded state courts from providing Fifth
Amendment just compensation altogether. The 78t
process is not an adequate substitute for the Takings
Clause: it denies full recovery, withholds
constitutionally
required
interest,
effectively
prohibits
class-wide
relief,
and
imposes
governmentally-favorable deductions not permitted
by federal law. The question reserved in DeVillier is
unavoidable here.
10
In short, Michigan’s highest court has effectively
declared that the Fifth Amendment itself provides no
judicially cognizable claim against the State in
Michigan’s courts, even when the statutory substitute
fails to deliver appropriate “just compensation.” That
is direct violation of this Court’s teaching. “Just
compensation is provided for by the Constitution and
the right to it cannot be taken away by statute.”
Seaboard Air Line Ry. v. United States, 261 U.S. 299,
304 (1923) (emphasis added). The “self-executing”
promise this Court has reaffirmed since First English
is thus stripped of all meaning. This case offers the
Court a clean vehicle to decide the very issue it could
not reach in DeVillier.
I.
The Michigan Supreme Court’s Decision
Conflicts With This Court’s Precedent
Holding the Takings Clause to Be SelfExecuting
This Court has long recognized that the Takings
Clause itself guarantees a right to compensation that
exists independent of statutory mechanisms. First
English, 482 U.S. at 315 (“Statutory recognition was
not necessary.”); Knick, 588 U.S. at 192 (a property
owner has an “irrevocable right to just compensation
immediately upon a taking”). The duty to compensate
is not discretionary; it is a debt imposed by the
Constitution itself. As First English and Jacobs
confirm, when the government takes property, a
judicially enforceable obligation arises immediately –
no legislative permission is required. Courts have
11
long rejected the notion that Congress or a State may
condition payment of a constitutional debt on
statutory grace. This is because suits for just
compensation are “founded upon the Constitution of
the United States” itself, First English, 482 U.S. at
315, “shouldn’t depend on any statute” when “the
Constitution requires it,” O’Connor v. Eubanks, 83
F.4th 1018, 1029 (6th Cir. 2023) (Thapar, J.,
concurring); DeVillier v. State, 63 F.4th 416, 436 (5th
Cir. 2023) (Oldham, J., dissenting from the denial of
rehearing en banc) (collecting over a century of
Supreme Court cases highlighting plaintiffs have a
cause of action directly under the Takings Clause).
And equally critical, the right cannot be statutorily
extinguished either. Seaboard, 261 U.S. at 304 (“the
right to it cannot be taken away by statute”). Thus
from the Magna Carta in 1215 to Lawton in 1884
through Knick in 2019, the historical practice and this
Court have been consistent: a governmental taking is
not a hopeful promise awaiting permission – it is a
command that executes itself.
In short, the Fifth Amendment’s command is not
aspirational; it is mandatory. From the Magna Carta,
see Horne v. Dep’t of Agric., 576 U.S. 350, 358 (2015),
to the present day promise that no property may be
taken without payment of just compensation, AngloAmerican law has long treated compensation not as
grace but as an affirmative duty. Tahoe-Sierra
Preservation Council, Inc. v. Tahoe Reg’l Planning
Agency, 535 U.S. 302, 322 (2002) (our jurisprudence
involving takings “is as old as the Republic”); see also
12
United States v. Lynah, 188 U.S. 445, 465 (1903) (the
Fifth Amendment guarantees that when a taking
occurs “it shall be attended by compensation”).
Jacobs
characterizes
the
government’s
obligation as a constitutional promise that is “implied
because of the duty to pay imposed by the
Amendment,” enforceable the moment the taking
occurs. Jacobs, 290 U.S. at 16. Suits to enforce are
“founded upon the Constitution of the United States”
itself. Id. The text, history, and tradition thus all
converge on the same truth: the Takings Clause
executes itself.
The Michigan Supreme Court charted an
opposite course. It held that Mich. Comp. Laws §
211.78t is the “exclusive mechanism” for property
owners to pursue takings-based claims. It rejected
direct constitutional claims, disallowed constitutional
and class remedies, and compelled owners to rely on
an inferior statutory process. Such a holding relegates
the Takings Clause to a “poor relation” among
constitutional guarantees, exactly what Knick
condemned.
II.
The Decision Below Both Deepens
Confirms the Division Highlighted in
DeVillier
As the DeVillier petition catalogued, state and
federal courts are split. This case deepens the divide.
In some jurisdictions property owners may invoke the
13
Constitution itself, while in others – like Michigan –
they are left remediless. Certain states hold that the
Takings Clause creates a cause of action directly
enforceable in court. See, e.g., Benson v. State, 710
N.W.2d 131 (S.D. 2006); Henderson v. City of
Columbus, 827 N.W.2d 486 (Neb. 2013); Manning v.
Mining & Minerals Div. of the Energy, Minerals &
Nat. Res. Dep’t, 144 P.3d 87, 93 (N.M. 2006) (“The
Mannings’ claim does not rely at all on congressional
action. Rather, the just compensation claim stems
directly from the text of the Constitution through the
Fifth and Fourteenth Amendments.”); SDDS, Inc. v.
State, 650 N.W.2d 1, 9 (S.D. 2002) (“[T]he remedy [of
just compensation found in the Fifth Amendment’s
Takings Clause] does not depend on statutory
facilitation. Because it is a constitutional provision, it
is a right of the strongest character.”); Boise Cascade
Corp. v. Bd. of Forestry, 991 P.2d 563, 567 (Or. Ct.
App. 1999) (“In short, section 1983 does not provide
for the remedy required by the constitution for a
taking of property by the state.”). Others, including
the Fifth, Sixth, and Ninth Circuits, reject that view
and require legislative authorization. See DeVillier,
63 F.4th 416; Thomas v. Shipka, 818 F.2d 496, 499
(6th Cir. 1987) (“in cases where a plaintiff states a
constitutional claim under 42 U.S.C. § 1983, that
statute is the exclusive remedy for the alleged
constitutional violations”); Azul-Pacifico, Inc. v. City
of Los Angeles, 973 F.2d 704 (9th Cir. 1992).
Since DeVillier, the conflict has sharpened to a
razor’s edge. The Eleventh Circuit has now held that
14
the Takings Clause “guaranteed the ability to recover
‘just compensation’ directly under the Constitution,”
recognizing a self-executing cause of action for
damages. Fulton v. Fulton Cnty. Bd. of Comm’rs, 148
F.4th 1224, 1234 (11th Cir. 2025). The court reasoned
that “our Founders did not do to us what the Greek
gods did to Tantalus”; the Constitution “doesn’t taunt
us by naming these remedies but then holding them
out of reach.” Id. at 1232. The Fulton majority thus
affirms what this Court has long said – that the right
to just compensation under the Fifth Amendment
carries with it its own remedy. 1 The now resulting
divide between Michigan’s and the Eleventh Circuit’s
views could not be any starker.
This Court granted review in DeVillier precisely
because of this sharp division. But Texas avoided the
issue when it conceded that it would provide an
adequate alternative vehicle. Michigan has now
created the opposite scenario: there is an exclusive
and intentionally-inadequate “remedy” designed to
strip away core and critical elements of Fifth
1 The majority limited its holding to local governments only
because of the Eleventh Amendment’s restriction on federalcourt jurisdiction. However, this is of no moment. Fulton was
limited itself to local governments due to Eleventh Amendment
considerations of the federal forum, not because the Fifth
Amendment cause of action fails against a State in its own
courts. Because this case arises from state courts, no such
sovereign-immunity barrier exists. Michigan’s courts are fully
competent to entertain a self-executing federal claim, but erred
when it refused to do so.
15
Amendment just compensation. Property owners here
lack any true cause of action that secures the federal
constitutional right. And because the State is the
defendant, there is no ability to sue under Section
1983 in federal court. Will, 491 U.S. at 71. This case
therefore makes the conflict complete.
III.
The Case Presents Federal Questions of
Exceptional Importance
The consequences of the Michigan Supreme
Court’s Hathon decision are sweeping. Michigan’s
foreclosure system affects thousands of homeowners
each year where the State acts as the in-rem
foreclosing petitioner. By channeling claims
exclusively into Mich. Comp. Laws § 211.78t:
•
It directly violates Seaboard’s command.
This Court explained “[j]ust compensation is
provided for by the Constitution and the right
to it cannot be taken away by statute.” 261
U.S. at 304.
•
There is no independent judicial forum.
Claims must return to the very circuit court
that foreclosed on the property with strict
limits on what the courts can do, eliminating
neutral adjudication.
•
Deductions reduce compensation below
the constitutional floor. Mich. Comp. Laws
§ 211.78t(9) authorizes a “sales commission,”
16
effectively charging property owners for the
government’s unconstitutional retention of
equity.
•
No interest is awarded. In direct conflict
with Jacobs, compensation is limited to less
than full surplus accompanied by nearly a
year in delays with no interest provided.
•
No class actions are allowed. Property
owners must proceed individually, even
where claims are identical and low dollar
value. The purposeful result is systemic
underenforcement and high cost.
The statute’s exclusivity means that property owners
have no ability to invoke the Constitution itself. That
is not a “remedy” at all. It is precisely the
constitutional vacuum that this Court identified as
intolerable in DeVillier.
Today, dozens of states use tax-foreclosure
processes, and many are revising their laws after
Tyler, and rightly so. If Michigan’s inferior and subconstitutional model is permitted to stand, other
states will follow by crafting similar “exclusive”
statutory remedies that strip the essential
components of just compensation. Thus this case now
requires the answer to what DeVillier was able to
defer, i.e., the recognition that the Fifth Amendment,
by its own terms, supplies the cause of action and the
17
mandatory remedy.
IV.
Hathon Squarely Presents the Question
DeVillier Avoided and Pung Cannot
Resolve.
The Court’s recent grant in Pung v. Isabella
Cnty., Mich. (No. 25-95) ensures consideration of the
scope of “just compensation” for claims such as
Petitioners.’ But Pung does not present the
unavoidable constitutional question raised here:
whether the Takings Clause of the Fifth Amendment
is itself self-executing and judicially enforceable when
a State declares a statutory scheme to be the
“exclusive mechanism” and deliberately withholds
full compensation.
In Pung, the petitioner challenges the adequacy
of combination of only surplus proceeds plus Jacobs
interest as being the proper measure of required just
compensation. This Petition, by contrast, asks
antecedent question of whether the Constitution
allows a State to bar those affected property owners
from invoking the Fifth Amendment remedy at all.
Put differently, Pung tests “how much” compensation
must be paid; Hathon tests “whether” the State can
prohibit the Takings Clause from being invoked in the
first place.
The Michigan Supreme Court’s decision in this
case did not simply apply the 78t process; it held that
78t is the exclusive mechanism and that no
18
constitutional claim exists independently. That ruling
is a direct repudiation of this Court’s teaching in First
English, Jacobs, Knick, and Seaboard, which held
that just compensation is guaranteed by the
Constitution and cannot be erased by statute. The
question presented here is thus not subsumed within
Pung; it is prior to it.
For that reason, this case is not redundant of
Pung but complementary to it. At minimum, the
Court should hold this petition pending the
disposition of Pung. If Pung leaves unresolved the
foundational question of whether the Takings Clause
is self-executing in its own right, this case provides an
ideal vehicle to resolve it.
V.
This Case Is an Ideal Vehicle
This case is postured ideally. No procedural
defects or jurisdictional complexities exist. The
Michigan Supreme Court entered a final judgment on
a purely federal question, leaving nothing for further
factual development. It arrives cleanly on a single
dispositive constitutional issue resulting in an issued
definitive ruling on the exclusivity of Mich. Comp.
Laws § 211.78t that dismissed the constitutional
claims. The federal question is dispositive. Unlike
DeVillier, there is no adequate state-law cause of
action preserving constitutional remedies. And unlike
Tyler, which resolved whether surplus equity
constitutes property, this case asks the necessary
19
next question: whether the State can cabin and
curtail the remedy.
The Petition thus allows this Court to resolve
what it set aside just one Term ago. The Takings
Clause is either self-executing – guaranteeing a
federal right of action for just compensation – or it is
subject to legislative nullification. The Michigan
Supreme Court has taken the latter view. Only this
Court can correct it.
VI.
Without Review, States Can Erase the
Fifth Amendment by Statute
If Michigan’s decision is permitted to stand, the
Fifth Amendment will mean only what state
legislatures permit it to mean. States can draft
“exclusive mechanisms” that return only partial
compensation, bar interest, prohibit collective action,
and
shield
themselves
from
constitutional
accountability. The Michigan Supreme Court
candidly acknowledged that property owners’
arguments for interest, attorney fees, and against
deductions may have merit, but declared them
“premature” because the only available mechanism is
statutory. That reasoning turns the Constitution on
its head: it makes state law the source of the right,
and constitutional right merely advisory. That cannot
stand. State legislatures are simply never permitted
to legislate away federal constitutional rights. The
Constitution promises property owners a federal
remedy for takings. Michigan has erased it by statute.
20
Only this Court can restore what the Fifth
Amendment already and expressly commands.
CONCLUSION
This case is the natural sequel to DeVillier.
Where DeVillier ended with Texas conceding an
alternate remedy, Michigan begins by denying one.
The Michigan Supreme Court together with the
Michigan Legislature did through 78t what Seaboard
squarely prohibits: “[j]ust compensation… cannot be
taken away by statute.” 261 U.S. at 304. The Petition
squarely presents the question reserved, highlights
serious conflicts with this Court’s precedents, deepens
acknowledged divisions among courts, and threatens
to hollow out the Takings Clause. This Court’s
correction is essential to preserve the Fifth
Amendment’s force. Otherwise Michigan’s state
sovereign immunity bars federal court challenges, its
78t “exclusive mechanism” bars constitutional claims,
and 78t is deliberately sub-constitutional. And the
Constitution does not wait upon legislative
permission to be obeyed. This Court’s review is
necessary to ensure that the Fifth Amendment
remains what it has always been—a command, not a
courtesy.
For all the foregoing reasons, this Court should
grant the petition for a writ of certiorari or, in the
alternative, summarily reverse the decision below.
21
At a minimum, if the Court prefers not to grant
review immediately, it should hold this petition
pending its disposition of Pung v. Isabella Cnty., No.
25-95. If Pung does not fully resolve whether the
Takings Clause is self-executing in its own right,
Hathon provides the clean and necessary vehicle to
answer that foundational question. If Pung makes
clear that 78t’s inadequacy alone violates the
Constitution, the Court should summarily reverse
here, because the Michigan Supreme Court’s
‘exclusive
remedy’
holding
forecloses
any
constitutional avenue for relief.
Respectfully submitted,
PHILIP L. ELLISON
Counsel of Record
OUTSIDE LEGAL COUNSEL PLC
530 West Saginaw St.
Hemlock, MI 48626
(989) 642-0055
pellison@olcplc.com
E. POWELL MILLER
MILLER LAW FIRM
950 West University Dr.
Rochester, MI 48307
October 2025
MATTHEW E. GRONDA
GRONDA PLC
4800 Fashion Sq. Blvd.
Saginaw, MI 48604
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.