Managing Partner David Shea Discusses Shea Law’s $120 Million Class Action Lawsuit Against Wayne County for Keeping Foreclosure Sale Profits

David Shea, the Founder and Managing Partner of Shea Law, joined CBS News Detroit to discuss the Wayne County foreclosure lawsuit—a $120 million class action the firm is pursuing on behalf of residents. The suit targets Wayne County’s failure to refund people who lost their homes over unpaid taxes.

“You have the counties that are going in and looking at unpaid taxes and foreclosing on properties, selling off those properties and making a massive windfall…. The Supreme Court said that the government can’t take your money, that that is government theft.” – David Shea

What the Wayne County Foreclosure Lawsuit Is About

For years, some Michigan counties foreclosed on homes over unpaid property taxes, sold those homes, and kept the entire proceeds—not just the taxes owed. Imagine owing a few thousand dollars in back taxes on a home worth far more. In that scenario, the county could take the home, sell it, and pocket the difference. Critics call this practice “home equity theft,” and it left many families with nothing.

The Wayne County foreclosure lawsuit seeks to recover that lost equity for affected residents. As David explains in the segment, the surplus belonged to the homeowners, not the government.

What the Supreme Court Said

The legal ground shifted in 2023. That year, the U.S. Supreme Court ruled on this exact issue. When the government seizes and sells property to satisfy a debt, it cannot keep more than the debt itself. According to the Court, pocketing the surplus amounts to an unconstitutional taking. As a result, that decision strengthened the case for residents trying to reclaim the equity from their foreclosed homes.

Who May Be Affected

Did you or a loved one lose a home to tax foreclosure in Wayne County? If so, you may have a right to compensation. However, these situations are often complex, and deadlines can apply. So if you think a claim might apply to you, our team would be glad to talk it through. In the meantime, you can reach out to Shea Law to learn more about your options.

Finally, watch the full CBS News segment below.