Fink Bressack is leading the effort to help thousands of Michigan property owners recover equity that counties kept after tax foreclosures.
Thanks to a hard-fought tax foreclosure class settlement—now approved and upheld by the Sixth Circuit Court of Appeals—former owners are finally positioned to receive the compensation they were owed for years. This article explains how that result was achieved and how Fink Bressack helped make it possible.
How Fink Bressack Is Helping Michigan Property Owners Recover Surplus Proceeds
The long-running federal class action lawsuit Wayside Church et al. v. Van Buren County et al. has become one of the most important property-rights cases in modern Michigan history. At its core, the case addresses a simple but vital question: When a county takes a tax-delinquent property and sells it for more than the taxpayer owed, does the government have the right to keep the surplus?
For years, dozens of Michigan counties did exactly that. Local governments foreclosed on properties over unpaid taxes, sold them often for far more than the debt, and kept 100% of the proceeds. For many former owners, this meant losing not only their homes or land but also every dollar of equity they had built.
The Wayside Church litigation seeks to remedy that injustice. Fink Bressack serves as Class Counsel in this landmark case, advocating for thousands of Michigan property owners whose properties were sold during this period.
After years of litigation, a class settlement—now approved by the District Court and affirmed by the Sixth Circuit Court of Appeals—ensures that former property owners across Michigan can finally recover the surplus equity taken from them. The settlement represents a major step toward correcting the systemic unfairness that allowed counties to retain proceeds far beyond the taxes owed.
The Constitutional Issue at the Heart of the Case
The lawsuit began after Van Buren County foreclosed on several properties for relatively small tax debts and then kept tens of thousands of dollars in surplus value.
For example:
- Wayside Church fell behind on taxes totaling about $16,750. The county sold the church’s former youth camp for $206,000 and kept the entire surplus of $189,250.
- Henderson Hodgens lost his childhood home, sold for $47,750 on a $5,900 debt.
- Myron Stahl was building his retirement home when his property was seized, sold for $68,750 on a $25,000 debt.
You can read an in-depth narrative of these facts at the settlement website.
The plaintiffs alleged that keeping those surplus proceeds violated the Fifth Amendment’s Takings Clause, which requires the government to provide just compensation when it takes private property. Although counties argued that Michigan’s tax-foreclosure statute authorized the practice, courts at every level have increasingly recognized that constitutional rights cannot be overridden by state statute.
What the Settlement Means for Michigan Property Owners
The settlement resolves claims against 43 counties across Western and Northern Michigan. It allows class members to recover the surplus value taken when their properties were sold for more than the delinquent taxes owed.
To qualify, a person must have held a non-contingent interest in real property foreclosed between January 1, 2013 and December 31, 2020. Those who filed timely claims are now awaiting payment as the Claims Administrator completes final reviews.
Fink Bressack’s Role as Class Counsel
As one of the firms leading the litigation, Fink Bressack has played a central role in this precedent-setting case and guided it across a decade of complex procedural and constitutional questions.Fink Bressack’s work has included:
- Litigating core constitutional issues under the Takings Clause
- Managing class communications, notices, and claim procedures
- Coordinating with the Claims Administrator
- Navigating appeals, objections, and Sixth Circuit review
- Ensuring the settlement is fair, adequate, and reasonable for thousands of affected property owners
Why This Case Matters
Beyond the thousands of people directly affected, Wayside Church has become part of a national conversation about property rights, government overreach, and constitutional protections.
The principle this case vindicates is simple:
The government may collect what it is owed, but no more.
The settlement signals a clear shift away from the old tax-foreclosure system that allowed counties to keep windfalls at the expense of struggling property owners.
Conclusion
The Wayside Church class action marks a major victory for property owners and constitutional rights in Michigan. With the Sixth Circuit’s October 2025 decision affirming the settlement, thousands of individuals and families are closer to receiving long-overdue compensation.
Fink Bressack is proud to have served as Class Counsel in this historic case and remains committed to ensuring that every eligible class member receives the compensation they are owed.