Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Preliminary approval for MLS PIN case
Following multiple revisions, extensions and now-removed objections from the Department of Justice (DOJ), U.S. District Court Judge Patti Saris granted preliminary approval for the fourth amended settlement agreement in the Nosalek v. MLS Property Information Network (MLS PIN) case.
The approved settlement agreement is in line with the National Association of REALTORS®’ settlement, said Seth Klein, a lawyer representing the plaintiffs, during the June 10 hearing.
“The fourth amended settlement agreement—which removes the ability of listing brokers to put cooperative compensation on the service—brings this settlement in accord with the Missouri settlement that also prohibits such listings,” Klein said. “We also took out the commercial real estate that, Your Honor, indicated you would not certify a class that included sellers of commercial real estate, so that is now gone, as are mobile homes.”
Two weeks ago, the DOJ withdrew its objections, but did not waive its right to enforce future action on the MLS PIN.
“I received a memo from the DOJ reserving certain rights on their part, but basically approving the settlement, as is, between private parties. So I was very pleased with this. This case actually wins a record for me,” Judge Saris said during the virtual hearing. “I’ve never, I think, rejected so many preliminary proposals, and it’s come a huge, long way.”
Judge Saris plans on holding the final hearing on September 29 at 2:30 p.m. in Boston.
Howard Hanna distancing from NAR in buyer lawsuit
Pennsylvania-based brokerage Howard Hanna is now arguing its case on home turf and is distancing itself from the National Association of REALTORS® (NAR) in legal proceedings.
“Maybe there was a conspiracy that (the National Association of REALTORS®) facilitated. But there (are) no facts to suggest we participated in whatever conspiracy may have happened,” said Dave Gringer, a lawyer representing Howard Hanna during last week’s hearing. “And, in fact, there’s good reason to believe we didn’t.”
Specifically, Gringer and Seth Waxman, another lawyer representing Howard Hanna, pointed to MLSs that don’t follow NAR rules, including its “home base” of West Penn MLS, which “was formed at the instigation of the Hanna companies,” according to Waxman.
Noting how Howard Hanna mostly operates at a regional level, Gringer said this regional focus means no competition with other alleged conspirators.
The new judge assigned to the case, Judge Wendy Beetlestone, is considering whether to apply a different, less strict antitrust standard than what was used in the Burnett case, while also deciding whether or not to let the case move forward at all.
Former Real Brokerage CFO sues for discrimination
Former Real Brokerage chief financial officer Michelle Ressler is suing the company in federal court, citing gender and pregnancy discrimination, defamation and retaliation.
Real terminated Ressler last April due to “violations of policy” upon her return from maternity leave.
According to Ressler’s lawsuit, Real CEO Tamir Poleg claimed Ressler had engaged in “gross misconduct” in spending $17,000 on travel and entertainment which Ressler contends was “related to networking in her capacity as CFO.”
According to the filing, Ressler claims this was “pretextual” after Poleg and others tried to push her out of the company leading up to, during and after her maternity leave, making “discriminatory comments” related to how she would be able to handle her job responsibilities as a mother.
In an emailed statement obtained by RISMedia, Ressler said that the lawsuit “is about the truth.”
“In an industry where women comprise a majority of the workforce but too few of the decision-makers, we need more leaders willing to challenge outdated, discriminatory norms and lead with integrity,” she said. “I’m coming forward not just to right Real’s wrongs against me and hold it accountable, but also to demonstrate what resilience looks like when it’s rooted in principle, precision, and results.”
Commission settlement claims reach over 2.5 million
Over 2.5 million homeowner claims have been submitted for the settlements in the Burnett and Gibson cases.
According to a filing from JND Legal Administration—the law firm overseeing the administrative tasks of the 29 settlements in the Burnett and Gibson cases—over 100 million emails and 38 million postcards were sent to possible class members of the settlements.
California broker suing NAR after case dismissal six months ago
Relaunching his case, California broker John Diaz is suing NAR and local REALTOR® associations—this time with professional legal counsel, after his initial self-represented lawsuit last year was dismissed due to technicalities, including a missing signature.
The new lawsuit accuses NAR and REALTOR® associations of creating an unfair system that forces agents to pay excessive membership fees.
There are similar cases from brokers in Michigan, Pennsylvania, Georgia, Texas and Louisiana.
While much of his lawsuit focuses on the non-member fees, Diaz also points to the fact that REALTOR® membership necessitates joining multiple associations—the “three-way agreement.” Diaz claims his local association (the Central Valley Association of REALTORS®, who he is also suing in the lawsuit) does not provide a breakdown of the total fees.
Illinois bill targets private listings
Introduced in February and currently referred to committee, a bill in Illinois would enshrine Clear Cooperation rules into state law.
The bill states that an agent representing a seller or landlord must share information on the property with buyers/tenants agents, including “(making) the property available for showing to prospective buyers or tenants.”
In line with the Clear Cooperation Policy, the bill states that the listing must be publicly advertised within one calendar day, unless the seller/landlord completes a disclosure and opt-out form authorized by the Illinois Department of Financial and Professional Regulation.
The bill’s chief sponsor Representative Lilian Jiménez has said the bill, if passed, will “(bring) much-needed transparency and accountability to Illinois’ housing market,” citing a history of “redlining, block-busting and segregation in our communities.”
