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 settles buyer lawsuits for $52.25 million
The National Association of Realtors® (NAR) is settling buyer lawsuits for $52.25 million, opting into a copycat lawsuit in Illinois with what is being described as a “broader” release for all NAR members, brokerages and MLSs.
The settlement is meant to resolve claims by homebuyers over the same claims put forward in the Burnett case by sellers—namely, that NAR rules around commissions inflated costs for consumers.
In a statement, NAR CEO Nykia Wright said that the settlement is part of the organization’s efforts detailed in a new strategic plan to “advance the legal interest of Realtors®.”
“This outcome, which provides a broader level of protection and release for the industry than has been secured in any previous NAR settlement, is a result of NAR’s new legal team’s diligent approach to addressing legal risk and reinforces our commitment to delivering greater value and stability for our members, so they can remain focused on their clients and getting to their next transaction,” she said.
Douglas Elliman settles in Tuccori case
New York luxury firm Douglas Elliman has reached a settlement to resolve remaining homebuyer claims in a buyer copycat case—the same one NAR struck its deal in, according to a court document filed April 9.
The settlement, filed in the U.S. District Court for the Southern District of Florida, allows Douglas Elliman to resolve residential homebuyer claims that were not covered by a previous settlement the company reached with plaintiffs suing over seller-side antitrust practices.
No details regarding the Douglas Elliman settlement amount have been made public.
Judge denies Berkshire Hathaway Energy Company bid to avoid commission litigation
Berkshire Hathaway Energy Company (BHE)—parent company of HomeServices of America (HSA)—had the court deny its request for summary judgment in the Gibson v. NAR commission lawsuit (the largest and first Burnett copycat) before Judge Stephen R. Bough in the Western District of Missouri.
The filing argues plaintiffs cannot use BHE’s oversight of HomeServices to establish liability while simultaneously claiming the settlement release—which plaintiffs themselves described as a nationwide release—does not extend to BHE.
Bough wrote that while a parent company and its subsidiary can be considered a single enterprise in some antitrust contexts, that does not prevent them from participating in a broader conspiracy alongside other entities. In this case, the plaintiffs allege a “nationwide conspiracy to fix the prices of buyer-broker commissions,” extending beyond just BHE and HSA.
Plaintiffs push back in eXp sexual assault cases
Plaintiff Anya Roberts’ opposition filing argues that eXp World Holdings cannot escape liability as a “passive holding company” in her sex trafficking case, alleging the parent company actively governed the revenue-share recruiting program that drove growth and directly benefited from it.
Roberts is one of a handful of women who have sued the company and two top agents, claiming she was recruited through promises of professional advancement, then drugged and assaulted at eXp events. eXp is seeking to have the lawsuit dismissed largely on technical grounds, disputing Roberts’ assertion that the company and leadership stood to benefit from the actions of the two men (who were eventually separated from the company).
The filing presents evidence that eXp World Holdings executives were embedded in the company’s compliance structure, received escalations of prior sexual assault allegations and retained board-level authority to modify the revenue-share plan’s terms.
A hearing to discuss the issues is scheduled for June 5 in federal court in Los Angeles.
Additionally, a federal judge ruled April 7 in one of the other cases that eXp must face accusations of fraud related to its actions in the wake of sexual assault allegations against top recruiters, writing that plaintiffs provided significant evidence that the brokerage lied about conducting an investigation into two men accused of drugging and assaulting women at company events.
“Plaintiffs allege, in great detail, the specific actions taken by various members of the eXp Defendants’ leadership team,” Judge Andre Birotte of the Central District of California said in a 13-page opinion. “Plaintiffs (sic) allegations are sufficient to meet the heightened pleading standards of fraud and have pled with particularity their allegations.”
In a statement provided to RISMedia, an eXp spokesperson wrote that the company “remain(s) steadfast that these claims against eXp are entirely without merit,” also noting that Birotte’s decision is “procedural.”
“We take our responsibility to foster a safe and inclusive environment very seriously and maintain a zero-tolerance policy for misconduct of any kind. We feel confident in our legal position and look forward to vigorously defending the company as this matter proceeds,” the spokesperson said.
Judge denies injunction against Hanna Holdings’ Tuccori settlement
Hanna Holdings has cleared a hurdle in its efforts to opt into the Tuccori homebuyer commission settlement—a copycat case where multiple other big brokerages have opted into a settlement deal—as a federal judge in Pennsylvania denied a motion for a preliminary injunction seeking to block the deal.
According to previous court filings, plaintiffs in a separate lawsuit in the Batton litigation (the oldest and largest homebuyer lawsuit), claimed Hanna Holdings was engaging in “reverse auction” by securing a bargain settlement price from Tuccori plaintiffs.
The ruling allows Hanna Holdings to proceed with its Tuccori settlement despite ongoing objections, with similar injunction attempts against other defendants like Anywhere Real Estate also having been rejected by courts.
