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In a landmark decision issued on January 9, 2025, the New Jersey Supreme Court unanimously declared the New Jersey Tax Sale Law (TSL) unconstitutional. The decision [NJ Supreme Court Real Estate Tax Opinion] enables our client, Alessandro Roberto, to preserve his ownership of, and approximately $500,000 of equity in, a mixed-use commercial property in Paterson, New Jersey.

Alessandro Roberto pictured with his family.

Incredibly, Mr. Roberto initially lost his property over what started out as $606 of unpaid sewer tax liens that had ballooned to over $30,000 when he hired the Shapiro Croland firm.  Since the property was valued in excess of $500,000 and there were no mortgage liens, the loss of the property was a financial disaster.

We successfully persuaded the trial court to vacate the final tax foreclosure judgment and restore title to Mr. Roberto conditioned on his timely payment of the tax sale liens.

The plaintiff appealed and a 3-judge panel of the New Jersey Appellate Division, affirmed, declaring the TSL unconstitutional in light of the U.S. Supreme Court’s decision of Tyler v. Hennepin County. which found that a Minnesota county government violated the Takings Clause of the 5th Amendment, which prohibits the taking of private property without payment of just compensation to the owner, when it seized and sold an elderly woman’s condominium for $40,000 to satisfy a $15,000 tax lien and retained the $25,000 surplus.

In affirming the intermediary appellate court decision, the New Jersey Supreme Court declared that the Tyler case controlled and therefore held that the plaintiff could not regain title to the property and “take” our client’s substantial equity without paying him just compensation.

Partner Glenn R. Reiser and associate Ilan Danon represented Mr. Roberto at the trial court and appellate levels.