Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Judge denies Zillow’s request in Compass lawsuit
Judge Jeannette Vargas has denied Zillow’s request to rule on several initial disputes and issues over an injunction in the Compass vs. Zillow lawsuit.
Zillow had previously filed to limit the scope of the upcoming preliminary injunction hearing, and for the Court to decide issues related to irreparable harm and other claims, both of which Judge Vargas denied in a filing Oct. 9. Vargas said that “it would not be an efficient use of judicial resources to adjudicate the preliminary injunction motion in the piecemeal fashion suggested by (Zillow).” She specified the court is open to hearing arguments, but is “not inclined to rule on any aspect of the preliminary injunction motion prior to the evidentiary hearing.”
The company had also filed to postpone the evidentiary hearing on Compass’s motion for a preliminary injunction, which was also denied, as Vargas said the schedule has been available and in place since July.
An upcoming conference for the case is set for Nov. 10 at 2:30 p.m., with a joint letter of any proposals or evidentiary disputes for the conference from Compass or Zillow due Nov. 7.
CoStar responds to Zillow’s pre-trial motions
CoStar has filed responses to two motions set forward by Zillow in its copyright infringement case against the portal—a request for a venue transfer and a motion to dismiss.
In terms of Zillow’s motion to dismiss in which the portal claims that users misused the images and not the company itself, CoStar has argued that this is a “distortion” of their complaint. CoStar said it has evidence for its claims of “Direct Copyright Infringement” and “Vicarious Infringement,” invalidating Zillow’s dismissal arguments.
Responding to Zillow’s request for a venue transfer from New York to Washington, CoStar argued that the case has a “center of gravity in New York” and that Zillow’s “arguments fall short of the showing required to justify a transfer.” Specifically, the infringed images all have proximity to “properties in New York and its vicinity,” and that Zillow’s Terms of Use are “irrelevant.”
Zillow, which is seeking to have the case moved to Seattle, claimed that CoStar chose New York “to avoid unfavorable Ninth Circuit law,” but Costar argues that this logic “falls flat” and isn’t true. In addition, CoStar said that convenience considerations brought up by Zillow are not a factor as Zillow has offices in New York.
New York Attorney General indicted on mortgage fraud
New York Attorney General Letitia James has been indicted on mortgage fraud charges in the case brought on by the Department of Justice at President Trump’s urging.
James has been charged with bank fraud and making false statements to a financial institution relating to her 2020 home purchase in Norfolk, Virginia. Specifically, the Department of Justice alleged that James purchased a home and signed a “second home rider” ensuring she would maintain residence for “personal use and enjoyment for at least one year,” but then rented the home out before the year was up.
James characterized the indictment as “nothing more than a continuation of the president’s desperate weaponization of our justice system” in a statement. She added that the charges are “baseless” and a “grave violation of our Constitutional order.”
Under President Donald Trump, a handful of other government and elected officials have been accused of this same crime. But investigations have also found Trump cabinet members have engaged in similar practices.
Updates from the latest Acevedo vs. eXp hearing
With a discovery cutoff date of Dec. 1, dates for depositions were finalized at the latest Acevedo vs. eXp hearing on Oct. 10.
The case involves former eXp agents who allege they were drugged and raped by top eXp influencers at company events. Plaintiffs also claim the company covered up the incidents and protected the two men—Michael Bjorkman and David Golden—as eXp benefitted financially from their recruitment efforts.
Defendant Michael Bjorkman is scheduled to appear for deposition Oct. 13 and Oct. 29. Defendant David Golden is scheduled for Oct. 22, and potentially Nov. 19 if further questioning is necessary. Plaintiff Megan Farrell-Nelson is scheduled to appear for deposition on Oct. 21. Plaintiff Fabiola Acevedo is set to appear Nov. 10.
