Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
The last week of September was far from the bumpiest the real estate industry has experienced in recent memory, with lawsuit updates coming in the form of existing suits winding down or ending. That said, a scheduling update also stands as a reminder that these legal fights are not yet a thing of the past.
Batton settlement being discussed
The road to settlement requires intense negotiation, as seen in the latest filings from homebuyer class-action lawsuits.
According to these filings, a settlement is being actively discussed by the plaintiffs and an unnamed defendant in one of the loosely-consolidated Batton cases—class-action lawsuits filed by homebuyers against NAR and brokerages. Another defendant also previously engaged in settlement discussions, the filings said.
The two cases were filed in the Northern District of Illinois by several homebuyers from across the U.S. who used NAR-affiliated MLSs. Defendants across the individual cases include Keller Williams, Anywhere Real Estate, RE/MAX, Redfin, eXp, Weichert, United Real Estate and Compass.
Judge Andrea Wood recused herself from the case in early September due to a previously unknown conflict of interest, citing a tangential relationship between herself and a partner at one of the firms representing one of the defendants.
While settlements have been reached in lawsuits filed by homesellers, homebuyer lawsuits are another story. Should a Batton settlement be reached, it could provide the blueprint for future homebuyer-filed class-action lawsuits.
A teleconference to discuss the future of the Batton consolidated case is scheduled for Tuesday, October 8.
United Mortgage lawsuit dismissed
Brokerages and associations aren’t the only real estate entities dealing with lawsuits right now.
On September 24, 2024, an antitrust lawsuit against United Wholesale Mortgage (UWM) was dismissed by Judge Wendy Berger in the United States District Court for the Middle District of Florida.
The lawsuit was first filed in 2021 by Florida-based mortgage broker the O’Kavage Group. The plaintiffs alleged that UVM and its CEO Mat Ishbia had conspired with brokers to boycott two competitors, Rocket Mortgage and Fairway Independent Mortgage Corporation. However, the judge found that the plaintiffs “inadequately” supported their claims of antitrust violations.
After the ruling, UVM claimed victory in the lawsuit and said the decision “reaffirms that the claims against us were baseless from the start” (via Reuters).
It remains to be seen if the plaintiffs will appeal the ruling to a higher court at this time.
Conference set in eXp assault lawsuit
Fabiola Acevedo et al v. eXp World Holdings is a lawsuit filed by a handful of women who have alleged that former eXp agents David Golden and Michael Bjorkman sexually assaulted them at recruiting events, and that eXp leadership was “complicit” in covering this up.
Per the order of Magistrate Judge Alicia G. Rosenberg, a discovery conference (where the two parties of the case meet to discuss and exchange information about their evidence and plans for trial, such as witnesses to be called) has been scheduled for Tuesday, October 8 at 11:00 am Pacific Time.
The lawsuit is tentatively scheduled to go to trial in 2025.
