#United States #Class Action #Portland #Multnomah County #Tax Foreclosure

Overview of Multnomah County Tax Foreclosure Settlement

In a significant legal development, Multnomah County in Oregon has reached a $3.5 million settlement to resolve a class action lawsuit concerning proceeds from tax foreclosure auctions. This settlement, part of the Lynch et al. v. Multnomah County case, is aimed at compensating former property owners who were affected by the county's policies on surplus funds generated from tax sales. The case arose from claims that retaining excess proceeds from these sales amounted to a constitutional violation, specifically the unlawful taking of property rights under the U.S. and Oregon Constitutions.

Background of the Lawsuit

The origins of the lawsuit date back to October 2023, prompted by a unanimous ruling from the U.S. Supreme Court in the Tyler v. Hennepin County case. In that ruling, the Court deemed it unconstitutional for municipalities to keep any tax sale proceeds exceeding the taxes, fines, or costs owed. Following this precedent, the plaintiffs in the Lynch case sought restitution from all Oregon counties. However, Multnomah County has been the only county to agree to a settlement, returning surplus funds to those affected.

Settlement Details

Under the terms of the settlement, Multnomah County will deposit all surplus proceeds since 2017, along with accrued interest, into a settlement fund earmarked for valid claims from former property owners, their heirs, and valid lienholders. The total amount designated for these claims is approximately $3,515,759.25. Eligible Class Members will have the opportunity to submit their claims through online forms or by mail.

This settlement is a pivotal move for residents, as many individuals, including heirs and lienholders, now have a pathway to claim funds that were previously retained unjustly. It represents a significant step toward rectifying the financial burdens placed on former property owners following tax sales.

Claims Process

The claims process will be managed by Kroll Settlement Administration, which specializes in overseeing settlement claims. Class members will be notified through court-approved methods, ensuring they are aware of their rights and the necessary steps to claim their funds. Interested parties are advised to visit the dedicated website, www.MultnomahTaxForeclosureSettlement.com, for further details, including deadlines and how to access the claim forms. Additionally, a hearing is scheduled for November 10, 2025, where the federal district court will review the settlement for final approval.

The administration of these claims aims to provide former owners with the recognition and compensation they deserve. Individuals can also contact Kroll Settlement Administration for personalized inquiries, enabling a more accessible and informed claims experience.

Conclusion

The outcome of the Lynch case is a landmark decision that underscores a growing awareness of property rights and the need for transparency in how surplus funds from tax sales are handled. For many individuals affected by past tax foreclosures, the settlement opens a new chapter in reclaiming what is rightfully theirs. As the final approval hearing approaches, many will await confirmation of their eligibility and the subsequent steps they need to take to receive compensation for the injustices faced during the tax foreclosure process.