In a stunning development concerning major commissions lawsuit cases, U.S. District Judge Andrea R. Wood today recused herself from Batton vs. NAR, Moehrl vs. NAR and Batton v. Compass, Inc., citing a potential conflict of interest.
“It has come to my attention that the spouse of a person related to me within the third degree of relationship is a partner in a law firm representing a defendant in this case,” Wood wrote. “My relationship with this relative has not affected or impacted any decision in this case. Nonetheless, the relationship requires recusal under the Code of Conduct for United States Judges.
Wood cited a section in the Code of Conduct for United States Judges that provides that a “judge shall disqualify himself or herself in a proceeding in which the judge’s impartiality might reasonably be questioned, including but not limited to instances in which: . . . the judge or the judge’s spouse, or a person related to either within the third degree of relationship, or the spouse of such person is: . . . known by the judge to have an interest that could be substantially affected by the outcome of the proceeding.”
“Accordingly, I recuse from this action,” Wood concluded. She directed the courts to randomly reassign Batton vs. NAR, as well as Moehrl vs. NAR and Batton vs. Compass.
The two Batton cases constitute the largest and most advanced commission-focused class action lawsuits filed by homebuyers (settlements struck by NAR and other brokerages have involved cases filed by recent home sellers). Wood initially dismissed the first Batton case in 2022 (then known as Leeder), which was then refiled with new plaintiffs and using a new legal strategy relying on state rather than federal antitrust laws.
It was not immediately clear how the recusal would affect those cases, which previously had targeted a trial date somewhere late 2026 or early 2027.
Due to the recusal, the hearing in the Batton vs. NAR case scheduled for Thursday, Sept. 5 has been canceled.
This is a continuing story that will be updated.
