EXCLUSIVE: U.S. Supreme Court to Hear Michigan Property Tax Foreclosure Case That Could Have National Impact
Supreme Court to Hear Michigan Property Tax Case Alleging Unconstitutional Equity Seizures
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UPDATE: The Supreme Court arguments on this case are scheduled for Wednesday February 25, 2026.
HEMLOCK, Mich. — A Michigan attorney’s years-long fight against what he calls an unconstitutional tax foreclosure system will soon reach the highest court in the nation. The U.S. Supreme Court has agreed to hear a case led by attorney Philip Ellison, who argues that Michigan counties have been wrongfully taking homeowners’ equity after foreclosures for unpaid property taxes.
“This is something I’ve been working on for nine years,” Ellison said in an interview. “My client’s been with me nine years. And we’re going to go argue that the Michigan tax foreclosure system is unconstitutional.”
The Case at the Center
The case stems from the foreclosure of a Mount Pleasant home once owned by the late Timothy Pung. The property was taken by Isabella County after officials claimed Pong’s estate owed roughly $2,200 in back taxes. However, Ellison says the taxes were never actually owed due to a mistake by the local assessor.
“Long story short, they didn’t owe the money on the taxes,” Ellison explained. “The county foreclosed anyway. This was about a $200,000 house, and it was sold for $76,000 at auction.” A speculator later resold the property for $195,000, showing the significant loss to the original owner’s.
Click here to learn about how you could get involved if this has happened to you.
Even after Michigan’s Supreme Court ruled in 2020 that counties must return surplus funds from tax sales, Ellison argues the process still shortchanges property owners. “They refunded the difference between the $76,000 minus the $2,000 in taxes after we sued them,” he said. “But they only got back what it sold for — not what it was actually worth.”
The central legal question now before the U.S. Supreme Court is whether homeowners are owed the fair market value of their property or merely the auction sale price after foreclosure.
“Our position is it’s the fair market value price,” Ellison said. “The government already knows what that is — they calculate it every year for tax purposes. If they’re going to take someone’s property, they can’t take the whole pie.”
Broader Implications
Ellison said the issue affects tens of thousands of Michigan residents and potentially billions of dollars nationwide. “This is happening all throughout the country,” he said. “Imagine what’s going on in Michigan multiplied by 50 states.”
If the Supreme Court sides with Ellison, local governments could be required to refund the full equity value of seized properties — minus actual taxes owed. “If you’ve lost your home to tax foreclosure, you may be entitled to more than you received,” Ellison advised, encouraging affected residents to seek legal help.
Those wishing to learn more can visit MichiganTF.com, a site Ellison’s office established to assist homeowners and gather potential claimants.
What Comes Next
The Supreme Court will likely hear oral arguments in early 2026, either in January or March. A decision could be handed down by June 2026.
In the meantime, Ellison is preparing a series of legal briefs and expects numerous amicus (friend of the court) filings from outside organizations.
Though this is not Ellison’s first appearance before the nation’s highest court, this time he will personally stand before the justices. “I got to go once before, but I didn’t argue. This time I’ll be at the podium saying, ‘Mr. Chief Justice, may it please the court,’” he said. “It’s exciting, but I’ll admit it’s a little nerve-wracking.”
A Fight for Fairness
Ellison, who operates from Hemlock in Saginaw County, is known for taking on local governments and fighting cases that often offer little or no financial reward. “I wish my job didn’t need to exist,” he said. “But the world’s not always fair. There’s no shortage of government screwing over the citizenry.”
He says many homeowners are embarrassed or unaware of their rights when losing homes to foreclosure. “Most of the folks I’ve talked to, they fell on hard times, had medical emergencies, or simply didn’t know what was happening,” Ellison said. “You shouldn’t lose a lifetime of work over a small tax debt.”
Citing Chief Justice John Roberts, Ellison summed up his position: “You have to pay unto Caesar what is Caesar’s — but no more. For too long, Caesar has been taking far more than he’s entitled to.”
If Ellison succeeds, the ruling could reshape how states handle property tax foreclosures and restore millions in lost equity to affected homeowners across the country.
For more information or to check eligibility, residents can search for MichiganTF.com.