The blog of the Legal Times reports on the status of a lawsuit challenging the District of Columbia's sale of homes that are delinquent in paying taxes. "The case doesn’t contest the city’s ability to auction off a tax certificate if a property owner fails to pay taxes. Instead, the lawsuit claims that if the home goes into foreclosure and is sold, the city’s failure to compensate the original property owner for any surplus equity violates the Fifth Amendment." Yesterday, the court denied the city's motion to dismiss, which enables the lawsuit to proceed.
DC adopted a new approach after a Washington Post expose last fall.