Michael Pung's home was auctioned off for 76-thousand dollars after he failed to pay back taxes to the county.
Pung's attorney argued he was actually owed the "fair market value" of the home, which was worth nearly $200,000.
But the justices rejected the interpretation that "just compensation" equals fair market value in the Fifth Amendment.
Matthew Nelson is one of the attorneys representing Isabella County. He says the high court reaffirmed legal procedures dating back to the 11th century.
"So, the fact that the practices here were consistent with practice going back to the common law in England was crucial"
The high court sent part of the case back to a lower court to confirm the auction of the Pung's home was conducted fairly.
A call has been made to the Pung family's attorney for comment.