Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
NAR cleared in Sheth discrimination suit
Judge Georgia Alexakis of U.S. District Court in the Northern District of Illinois Eastern Division dismissed the Sheth discrimination case against the National Association of Realtors® (NAR) with prejudice, meaning that former employee Roshani Sheth cannot refile the case.
Sheth, who worked at NAR from 2014 to 2019, had alleged she was terminated in retaliation for filing internal discrimination complaints and that NAR breached a settlement agreement by refusing to provide employment references.
The judge found insufficient evidence connecting NAR’s actions to protected activity and noted that Sheth had multiple opportunities to support her retaliation claims.
Washington team owner names Zillow in new steering lawsuit
Zillow has been named in another antitrust lawsuit alleging the portal steers clients to its Home Loans business through its Premier and Preferred agent programs.
The complaint, filed Jan. 16 in the Western District of Washington by team owner Stephanie Dupuis, claims Zillow abuses its market power by pressuring agents to direct clients toward Zillow Home Loans or risk lower ratings and reduced referrals through its Follow Up Boss CRM system.
Dupuis alleges that as a Preferred Agent, she paid a 40% commission cut on Zillow-sourced leads, which she describes as essential given the portal’s alleged monopoly position.
The lawsuit mirrors complaints in the consolidated Taylor and Armstrong cases filed in the same district, both alleging similar steering practices.
Zillow denied the allegations, stating consumers control which agent and lender they work with, and that referral fees are consistent with industry practices.
Gibson objectors denied discovery
On Jan. 21, the court denied a motion for discovery in Gibson v. National Association of Realtors® (NAR), filed by objectors Benny D. Cheatham, Robert Douglas, Douglas Fender and Dena Fender.
The objectors sought to subpoena financial records from several real estate companies, including William Raveis Real Estate, EXIT Realty Corp. and Windermere Real Estate Services.
The court found that “objectors are generally not entitled to discovery,” and thus denied their motion.
FTC v. Zillow/Redfin discovery dispute
In a joint status report filed Jan. 19 in the U.S. District Court for the Eastern District of Virginia, plaintiffs and defendants outlined ongoing discovery disputes over document custodians, with the FTC seeking to compel production from top executives, including CEO Jeremy Wacksman from Zillow.
On Jan. 13, Zillow and Redfin filed a motion to dismiss, arguing that the FTC provided no evidence of antitrust violations and that the $100 million partnership agreement benefits both renters and property managers.
Judge Anthony J. Trenga of the U.S. District Court for the Eastern District of Virginia will decide whether to grant the motion to dismiss. A hearing regarding the motion is currently scheduled for Jan. 28.
