Oregon Supreme Court Parses Timeliness of Tax Sale Takings Claim

Oregon Supreme Court justices during oral arguments Tuesday grappled with when the statute of limitations for a takings claim begins to run in a dispute involving whether Linn County unlawfully retained surplus proceeds from a tax sale foreclosure.

Linn County, Ore. in 2008 foreclosed on Western States Land Reliance Trust’s failed housing development, and a foreclosure court subsequently affirmed the judgment. The state’s statutory limit for a takings claim is two years, but Western States didn’t file a suit against the county for retainment of surplus proceeds until the county sold the properties in 2022.

The arguments demonstrate the difficulty ...