Gloria Cavaluzzi, et al. v. County of Sullivan

New York City, New York civil litigation lawyer represented the Plaintiffs taking of private property without just compesnation theory.



In Tyler v. Hennepin County, 598 U.S. 631 (2023), the Supreme Court held that a county could be liable for taking private property without just compensation, in violation of the Takings Clause of the Fifth Amendment of the Constitution, where, after foreclosing on and selling a taxpayer's real property in order to extinguish her property tax debt, it kept for itself the excess proceeds of the sale. The instant case, based on and brought shortly after the Tyler decision, involves similar claims by 25 residents of New York's Sullivan County (the "County”). They claim that the County violated the Takings Clause, by retaining the proceeds of tax foreclosure sales in excess of the sum necessary to pay the outstanding property taxes, interest, and penalties. Based on the same conduct, plaintiffs also claim violations of the Excessive Fines Clause of the Eighth Amendment and, separately, of New York State law.



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New York counties assess taxes on property every year, in accordance with the New York State Real Property Tax Law. See N.Y. Real Prop. Tax Law §§ 900 et seq. The taxpayer has one year to pay before the taxes become delinquent. Id. §§ 902, 1102(4). A municipality may enforce the payment of a delinquent tax by placing a tax lien on the affected property. Id. §§ 1102(3), 1104. If the taxpayer does not pay within the first month after the lien date, the tax accrues interest and penalties. Id. § 924. Generally, the delinquent taxpayer has two years to redeem the property and regain title by paying all outstanding taxes, fees, and penalties. Id. § 1110. If, however, the taxpayer does not satisfy the amount due, absolute title vests in the State, and the tax debt is extinguished. Id. § 1136(3). The State may keep the property for public use or sell it to a private party. Id. § 1190.



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The Supreme Court's unanimous decision in Tyler issued on May 25, 2023. Plaintiff Geraldine Tyler owned a condominium in Hennepin County, Minnesota, on which $15,000 in unpaid property taxes, interest, and penalties, had accumulated. Tyler, 598 U.S. at 635. The



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County, acting under Minnesota's forfeiture procedures, seized Hennepin's condominium and sold it for $40,000, extinguishing her outstanding debt. Id. Rather than return the remaining $25,000, the County kept the surplus for its own use. Id. Tyler filed a putative class action against the County and its officials. Id. She claimed that, in retaining the surplus, the County had violated the Takings Clause of the Fifth Amendment, applicable to the States through the Fourteenth Amendment, and the Excessive Fines Clause of the Eighth Amendment. Id. at 635-36.

Motion for summary judgment denied.