County counsel outlines class-action threat over tax-foreclosure surpluses, updates on other claims and union talks

Adams County’s legal counsel briefed supervisors on a newly filed class-action lawsuit that seeks return of surplus proceeds from tax-foreclosure sales dating back to 1975, citing a Minnesota Supreme Court decision as precedent, and provided updates on several other county cases and claims.

The county’s counsel described the newly filed case as asking “that all 72 counties plus the city of Milwaukee return all surplus funds from 1975 through the present time,” and said the matter is very new. Counsel said county legal staff will coordinate with major insurers and a small number of self-insured counties to mount a defense. Counsel noted the Minnesota case (described during the meeting as a Hennepin County decision) found keeping surplus funds in that context to be an unconstitutional taking. Counsel said, "I don't think the court will find that we need to return 40 years worth of surplus funds, but I do think that they'll probably... find some reasonable limit whether that's 6 years or 10 years or whatever." That was presented as counsel’s view, not a court ruling.

Counsel also summarized other litigation and claims: - Opioid litigation: “still chugging along”; counsel registered for an upcoming WCA update. - Board of adjustment appeal: the circuit court remanded a conditional use-permit denial to the board because the court found the board did not state sufficiently specific reasons; the board is to clarify its reasoning at a remand hearing. - Open-records case (plaintiff Pat Roe): alleged deadline miscount; briefs are complete and the county is awaiting a judicial decision, which by statute may take up to 90 days from filing; counsel has asked the assigned firm whether to seek a judicial “nudge” because the matter is overdue. - Several pending claims: a notice from AFNI about a segregation claim (limited detail); an airport hangar damage matter where the county's insurer reportedly denied the claim and State Farm has paid the claimant and may seek reimbursement; a Frontier claim for cable damage (no dollar amount stated).

Counsel also reported that negotiations with the deputies’ union are active and expected to be finalized by next month; the prior union contract had run through the end of the prior year.

Counsel cautioned that the tax-foreclosure suit is at an early stage and that insurance coverage and potential exposure remain uncertain.