A U.S. District Court Judge in Florida has dismissed the homebuyer commission lawsuit Lutz v. HomeServices of America.
In a filing from Judge K. Michael Moore today, the lawsuit—which also named Douglas Elliman as a defendant—was ordered closed following the dismissal of the plaintiffs second amended complaint.
“We believe the Court reached the right decision in granting the motion to dismiss the Lutz case, and we appreciate the Court’s thoughtful and well-reasoned opinion,” said HomeServices President & CEO Chris Kelly in an email to RISMedia.
The complaint from plaintiff James Lutz and others was dismissed with prejudice on one count and without prejudice on three other counts.
“While some state law claims were dismissed without prejudice, the ruling highlights the significant legal and factual hurdles the plaintiffs face in pursuing those claims,” Kelly said. “From the beginning, the buyer-side and seller-side class actions have presented conflicting legal theories, further underscoring the complexity of these matters.”
The suit was originally filed April 29, 2024 against HomeServices of America solely, alleging that the company conspired with the National Association of REALTORS® on rules that inflated commissions.
Lead plaintiff Lutz centered the complaint around his purchase of a home in Florida in 2021 using a Berkshire Hathaway HomeServices agent.
Douglas Elliman was later added as a defendant to the lawsuit in an amended complaint filed June 11, 2024.
Following the amended complaint, both HomeServices and Douglas Elliman filed a joint motion to dismiss the lawsuit, claiming that Lutz did not “have sufficient standing to sue or act as a class representative.”
Defendants argued that the complaint should receive the same ruling Judge Andrea Wood—who at the time was overseeing the Batton case, the original and largest buyer case—gave: that plaintiffs who filed identical complaints are not “efficient enforcers of antitrust laws.”
Plaintiffs then filed a second amended complaint on December 12, which defendants filed another motion to dismiss soon after on December 23.
As for the future, the filing stated that plaintiffs are allowed to file a third amended complaint within the next 21 days and attempt to revive some of their claims.
“We remain confident in our position and will continue to defend against claims that misrepresent how the real estate industry and our agents serve consumers,” concluded Kelly.
Stay tuned to RISMedia for further updates.
