Christine Searle is a 70-year-old resident of Gilbert, Arizona. She has owned her home for 18 years now, and by all accounts, it is worth hundreds of thousands of dollars. But unbeknownst to her, she was partially overdue on her taxes, and owed around $1,600 in back taxes.Ā Ā
In order to force compliance, Arizona law allows the government to sell the power to foreclose on a home. The Maricopa County treasurer did just that. Now, Ms. Searle stands to lose not just her home, but the equity that she had built up in the house.Ā Ā
This is the result of a law that should have been fixed years ago, but Arizonaās attorney general has failed to protect the constitutional rights of the stateās citizens. Mountain States Legal Foundation has come to Ms. Searleās aide to defend her against a gross violation of economic liberty.
Case Summary
Ms. Searle bought her home in 2005. She has been the sole owner and has enjoyed the benefits of home ownership. While the government appraised her house at $376,800, it is actually worth much more. Some online real estate search engines appraise it for as much $505,000!Ā
After Ms. Searle fell behind on property taxes for the years 2015 and 2016, Maricopa County put a lien on her house and then auctioned off the lien. At the time of the foreclosure, Ms. Searle owed just $1,607.68 in back taxes. This action, sanctioned by Arizona law, led to a default judgment and the eventual transfer of her home’s title to a private company. Now, on top of losing her home and all its equity, Ms. Searle is threatened with the loss of her home.
The Constitution and the Supreme Court
Ms. Searle is not the first unsuspecting citizen to be evicted like this. Arizonaās home equity seizure law has been on the books since 1997. However, as the Supreme Court made clear in 2023, the government just canāt go about doing it this way.Ā
The Constitution of the United States protects private property. It does not allow the government to obtain someoneās home or other property for public use without just compensation, and never for the mere private use of another. Even in cases where eminent domain is usedāfor public purposes such as highwaysāthe government still must provide a property owner with just compensation.Ā Ā
In 2023, as a part of that constitutional protection, the Supreme Court ruled the government cannot sell a person’s home to cover a debt, and then keep the extra money from the sale of the house. In Arizona, the system is essentially the sameāexcept that instead of the government keeping the extra funds, itās the purchaser of the tax lien.Ā
Our nationās legal history at the Supreme Court is chalk-full of reasons why such a monstrous system is impermissible.
- āIt is against all reason and justice for a people to entrust a legislatureā with the power to enact a law that takes property from A and gives it to B.ā Calder v. Bull, 1798
- āThe principle that a manās home is his castle is basic to our system of jurisprudence.” Lombard v. Louisiana, 1963
- āThe taxpayer must render unto Caesar what is Caesarās, but no more.ā Tyler v. Hennepin Count., Minnesota, 2023.Ā
When the Supreme Court in 2023 declared that the government canāt take a citizenās private property in this context, the Arizona attorney general should have immediately suspended enforcement of Arizonaās law until it could be properly addressed by the courts and the state legislature. Instead, Ms. Searle has lost her home because of government negligence.Ā
Join the Fight
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What’s at Stake
Americans have the right to private property. The government can never confiscate one personās property in order to give it to another. Even when the government can legally take private property, it must provide just compensation. Here, Ms. Searle is literally on the verge of losing hundreds of thousands of dollars, and her home. That is absurd!
Mountain States has stepped into the case to protect all Americansā right to private property, and to extend the precedents that have been set to date. We wonāt rest until the Constitution is fully protected and enforced.
We are representing Ms. Searle in her suit based on federal and state law. We are suing the Arizona attorney general and other entities who may control the foreclosure power on Ms. Searleās property. We seek a complete invalidation of the transfer of her property, damages, and a return to constitutional sensibility.
Case Timeline
- 2015: Tax lien applied
- August 2021: Foreclosure process initiated by private company.
- January 2024: Ms. Searle was notified that eviction proceedings would soon begin.
- January 2024: Mountain States filed a complaint in federal District Court of Arizona on behalf of Ms. Searle, and filed a motion for an injunction to stop the eviction of Ms. Searle.