New lawsuit sweeps up 8 brokerages and MLSs
The companies were among the remaining entities not covered by NAR’s deal. They quickly agreed to settle, paying more than $10.5 million in combined damages.
Another commissions-related class action lawsuit was filed against a group of real estate brokerages and MLSs on Monday, but this one was quickly settled, adding more than $10.5 million to the fund.
What was the new suit about? The lawsuit was filed Jan. 27 in a Missouri District Court by a group of 14 plaintiffs led by Jeremy Keel, who sold a home in Missouri in 2020 using a KW agent. The list also included several familiar names: Moehrl, Gibson, Umpa and Burnett.
The complaint mirrored those earlier cases, alleging that a conspiracy took place to enforce anticompetitive rules created by the National Association of Realtors (which was named as a co-conspirator but not a defendant), resulting in inflated commissions.
Unlike the Sitzer/Burnett and Gibson/Umpa cases, which were overseen by Judge Stephen Bough, this case is being handled by Judge Fernando Gaitan Jr.
Who are the defendants? The six brokerage companies and two multiple listing services named in the suit were among the 90+ brokerages and 30 MLSs that were not covered under NAR's March settlement. They also had not opted into the settlement prior to the June deadline.
The eight defendants chose to settle and filed a preliminary motion on Jan. 27, concurrent with the lawsuit, that included a breakdown of damages:
Side, Inc.: $5.5 million.
Washington Fine Properties, LLC: $1.3 million
First Team Real Estate — Orange County: $1 million
House of Seven Gables Real Estate: $1 million
Signature Properties of Huntington, LLC: $850,000
Cairn Real Estate Holdings: $700,000
Central New York Information Service: $125,000
Brooklyn New York MLS: $95,000
The group of defendants is geographically diverse: Cairn Real Estate Holdings, the parent company of JPAR and Your Castle, has roughly 3,500 agents operating in more than 30 states, according to court documents. Side, headquartered in California, is a brokerage platform serving teams across the country, while the other brokerages and MLSs operate locally or regionally in various states.
The settlement fund, which includes payouts from the National Association of Realtors and numerous brokerages and MLSs, already exceeded $1 billion.