NY Homeowner Gets Tax Foreclosure Lawsuit Against City Revived

A former homeowner suing a New York city after it foreclosed his property on a tax debt and refused to give him the surplus saw his lawsuit revived when the Second Circuit held he sufficiently alleged a constitutional claim.

Kenneth Sikorsky stated a viable claim under the Fifth Amendment of the US Constitution because the US Supreme Court recently held in Tyler v. Hennepin County that governments can’t keep surplus funds in tax sales without providing an avenue to reclaim the surplus, Judge Alison J. Nathan of the US Court of Appeals for the Second Circuit said.

Sikorsky alleges ...