Matthew L. Berman
Employment, class action and civil rights lawyer
(516) 203-7180Get an estimate

Case page · S.D.N.Y. No. 19-cv-2216

Dorce v. City of New York

A class action over New York City's Third Party Transfer program. Under the program the City took title to homes and small buildings over unpaid municipal charges and transferred them to third parties, and the owners lost all of their equity, not just the amount they owed. In September 2026 the City agreed to a proposed $60 million settlement for the Round 10 class, which the court preliminarily approved on October 21, 2026. A final approval hearing is set for May 5, 2027. Claims for more than 500 other properties remain in litigation.

On this page: Timeline · Decisions · Settlement status · Counsel · Press · For property owners

Timeline

2018
Yolande I. Nicholson identifies the pattern in the Third Party Transfer program and brings it to me.
March 2019
Complaint filed in the Southern District of New York by Yolande I. Nicholson, P.C. and Valli Kane & Vagnini LLP, pleading takings, due process and equal protection claims on behalf of owners whose equity the City kept.
July 2019
Keith Wofford, then of Ropes & Gray LLP, appears for two of the plaintiffs. Ropes & Gray and, later, White & Case LLP join as co-counsel.
2021
The Second Circuit reverses the dismissal in relevant part and reinstates the takings, due process and equal protection claims. Dorce v. City of New York, 2 F.4th 82 (2d Cir. 2021).
2022–2023
The petitioners in Tyler v. Hennepin County cite a 2022 Dorce ruling when they ask the Supreme Court to decide whether a government that keeps surplus equity after a tax foreclosure has taken property. In 2023 the Court holds, unanimously, that it has. Tyler v. Hennepin County, 598 U.S. 631 (2023).
2025
Settlement reached through mediation for the Round 10 class.
September 2026
The parties move for preliminary approval of a proposed $60 million settlement for the Round 10 class.
October 21, 2026
The court grants preliminary approval, approves the form and manner of notice to the class, and sets a final approval hearing for May 5, 2027 (ECF 542). The claims for Rounds 1–9 continue to be litigated.

Decisions

  • 2d Cir. · 2021

    Dorce v. City of New York, 2 F.4th 82

    Reversed the dismissal in relevant part and reinstated the takings, due process and equal protection claims.

  • U.S. Supreme Court · 2023

    Tyler v. Hennepin County, 598 U.S. 631

    Not a Dorce decision. The Court held unanimously that a county that sold a home for unpaid taxes and kept the proceeds above the debt took property without just compensation. The petitioners had cited a 2022 Dorce ruling in asking the Court to take the case.

Settlement status

The proposed settlement covers the Round 10 class only: owners of properties transferred in the program's tenth round. It is $60 million. On October 21, 2026 the court granted preliminary approval and set a final approval hearing for May 5, 2027, when it will decide whether the settlement is fair, reasonable and adequate. Until then, nothing is final. Claims for more than 500 properties in other rounds are not part of this settlement and remain in litigation.

The City has proposed reviving a version of the transfer program. As I told Gothamist, the firm would likely sue again on behalf of property owners if the City enacts a program that takes and transfers properties the same way.

Counsel

Yolande I. Nicholson originated the case in 2018, and she and Valli Kane & Vagnini LLP filed it in March 2019. Ropes & Gray LLP and White & Case LLP are co-counsel. Many lawyers across these firms have worked on the case over seven years.

Press

Headlines are the publications’ own. Each entry also links to a permanent archived copy where one could be made.

News

Firm announcement

For property owners. If you believe the City took your property through the Third Party Transfer program, you may have rights in this case or in the claims still being litigated. Watch for court-approved notices, and contact me with the address and the round, if you know it. Valli Kane & Vagnini LLP handles every representation. This page is general information about a pending case, not legal advice.