Wayside Church v. Van Buren County, No. 15-2525 (6th Cir. 2017)Annotate this Case
Plaintiffs each owned real property in Van Buren County, Michigan in but failed to pay property taxes for 2011. In 2012, the properties became subject to forfeiture and foreclosure. In 2014, the circuit court issued a foreclosure judgment; title to the properties passed in fee simple absolute to the county. Months later, the county sold the properties at an auction. The minimum bid for each of the properties was calculated by totaling “[a]ll delinquent taxes, interest, penalties, and fees due on the property” plus the “expenses of administering the sale, including all preparations for the sale.” Wayside Church’s former property had a minimum bid of $16,750, but sold for $206,000. The minimum bid for the Stahl property was $25,000; the property sold for $68,750. The Hodgens property required a minimum bid of $5,900, but sold for $47,750. Plaintiffs sought return of the surplus funds, citing 42 U.S.C. 1983, and alleging that they had a cognizable property interest in their foreclosed properties and in the surplus proceeds generated by the sales, so that Defendants were required to pay just compensation under the Fifth Amendment. The Sixth Circuit vacated dismissal for failure to state a claim and remanded for dismissal for lack of subject matter jurisdiction. the district court erred in finding that the claims were not barred by the Tax Injunction Act, 28 U.S.C. 1341, and the doctrine of comity.