Supreme Court weighs 'equity theft' claim after state seized 94-year-old's home

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Supreme Court weighs 'equity theft' claim after state seized 94-year-old's home
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The Supreme Court appeared sympathetic to the appeal of a 94-year-old Minnesota woman challenging the so-called practice of governmental 'home equity theft.'

, interest and penalties in 2015 when Hennepin County, Minnesota, seized her one-bedroom condominium and later sold it for $40,000.

"At bottom, she's saying the county took her property and made a profit on her surplus equity. It belongs to her," saidSeveral justices questioned the scope of the locality's powers, asking whether the logical extent of the argument meant a municipality could keep more money than was owed through costs such as administrative fees and additional penalties. They were met with answers supportive of the county's position, even from parties backing Tyler.

"Can it impose a penalty for failing to respond or for anything else that the property owner may do in connection with this proceeding?" continued Alito.But few justices appeared to endorse wholesale the concept of a municipality keeping everything from a property forfeiture above what was originally owed plus any added costs.

Interjected Roberts: "I don't think the framers were ignorant of the notion of eminent domain, but they still wanted to protect private property if you don't pay for it." "When the title is fully transferred to the government, her property interest is extinguished," said Katyal.

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