Class Deal in Tax Foreclosure Surplus Suit Gets 6th Cir. Nod

Oct. 6, 2025, 9:29 PM UTC

A class action settlement ending litigation against 43 Michigan counties that unconstitutionally retained excess proceeds from tax foreclosure sales was properly approved, the Sixth Circuit held Monday.

Certification of the class was proper, and the district court didn’t abuse its discretion in determining that the negotiations leading to the agreement were fair, the relief offered by it was adequate, and the distribution was equitable, the unpublished opinion held.

The deal returns to the former property owners 80% of the surplus funds stemming from the auctions of their tax-delinquent property.

The lower court didn’t err in finding that the negotiations leading ...

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