United, HomeSmart reach deals in commissions case 

July is proving to be a busy month for the courts. On Friday, July 12, settlement amounts for several brokerages were disclosed, and NAR's rehearing request in its dispute with the Department of Justice was denied.

Then on Monday, July 15, there was more activity in the Gibson/Umpa case, which was merged in April, as two additional companies announced settlement agreements and several others filed motions to dismiss.

Who settled: United Real Estate and HomeSmart both announced settlements Monday, according to documents filed in U.S. District Court in Missouri. 

HomeSmart agreed to pay $4.7 million in damages, while United will pay $3.75 million, pushing the settlement fund to more than $980 million. Judge Stephen Bough granted preliminary approval to both settlements on Tuesday, with a final hearing to be set no later than the Nov. 26 NAR final settlement hearing.

In a statement released on July 16, United said it doesn't acknowledge any wrongdoing but felt a settlement was the best course of action for the company.

"We are a 10-plus year positive disruptor in the real estate space," said Dan Duffy, CEO of United Real Estate Group. "We have always been committed to providing the best support and value for our brokers and agents. This settlement allows us to focus on empowering agents with the tools and resources they need to compete and serve their clients with excellence, without the burden of prolonged litigation."

Who filed for dismissal: Weichert Realtors, Hanna Holdings, William Raveis Real Estate, NextHome, Real Estate One, Crye-Leike, John L. Scott and K Company Realty each filed motions to dismiss, all citing a lack of jurisdiction in the case.

Howard Hanna Real Estate was originally named as a defendant in the Gibson case but was later dropped. Hanna Holdings was then named separately in Umpa, and the holding company remains a defendant in the merged case. 

Late in the day on July 15, additional defendants in the case — Berkshire Hathaway Energy, eXp, Keyes and Baird & Warner — filed different motions to dismiss, followed by Windermere and William L. Lyon & Associates on July 16.

Settlement approvals: Judge Stephen Bough gave preliminary approval to the settlements reached by Redfin and Engel & Völkers. The two settlement agreements were officially filed in court last week after being announced earlier this year.

Redfin settled for $9.25 million while Engel & Völkers agreed to pay $6.9 million. In a statement, E&V President and CEO Anthony Hitt echoed United's remarks, saying the decision "was driven by our desire to eliminate any uncertainty for our network of franchisees, advisors, staff and the clients they serve, allowing us to focus on providing the exceptional level of real estate service Engel & Völkers is known for in the U.S. and throughout the world."

Bough noted that a final hearing for the settlements must be scheduled for no later than Nov. 26, which is the date of the National Association of Realtors' $418 million final settlement hearing.