Multnomah County has reached a settlement in a class-action suit with former property owners whose properties were sold at tax foreclosure sales.
The County had been following Oregon law regarding the distribution of surplus proceeds it received from selling tax foreclosed properties. Then, in 2023, the U.S. Supreme Court held in Tyler v. Hennepin County, a case originating from Minnesota, that it was unconstitutional for counties to retain surplus proceeds from such tax foreclosure sales.
Martin Lynch, et al. v. Multnomah County, et al. was filed as a class-action lawsuit shortly after the federal ruling and sought to recover surplus proceeds collected by Multnomah and other Oregon counties.
On June 25, 2025, Multnomah County agreed to put approximately $3.5 million into a settlement fund to pay former property owners and other authorized claimants surplus proceeds from the sale of eligible properties. Multnomah County planned for this eventuality, accounting for the settlement in its 2025 budget.
Under the settlement agreement between Multnomah County and the plaintiffs, the County is paying the equivalent of all surplus proceeds it has received since 2017, plus interest, into a settlement fund to pay former owners and/or other eligible claimants, as agreed upon in the settlement and consistent with new Oregon law.
Kroll Settlement Administration has been appointed to administer the settlement claims process. People can find more information at https://www.multnomahtaxforeclosuresettlement.com/
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