Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Hardy v. NAR: Brokers appeal MLS membership antitrust challenge
Brokers Douglas Hardy, Glenn Champion and Dylan Tent filed an appeal to the Sixth Circuit after a federal judge dismissed their antitrust lawsuit challenging NAR’s requirement that brokers purchase NAR membership to access MLS systems.
The plaintiffs characterize MLS access as an “essential marketplace tool” improperly conditioned on private trade association membership and dues.
A Michigan federal judge rejected their claims as not presenting “actionable” competitive harm and distinguished the case from a landmark 1991 ruling that made MLS membership requirements illegal in three states.
Hardy stated the plaintiffs remain committed to litigating what they view as fundamental competitive injury.
eXp reincorporation claims independence from litigation
eXp World Holdings filed supplemental Security and Exchange Commission (SEC) proxy materials ahead of its shareholder vote claiming its proposed move from Delaware to Texas has nothing to do with pending litigation.
A special committee of independent directors allegedly began the redomestication review over a year ago, before the current shareholder lawsuit alleging cover-up of sexual assault claims.
New York State Comptroller Thomas DiNapoli called the timing “highly suspect,” characterizing it as an attempt to shield leadership from accountability.
The April 21 filing emphasized that Delaware and Texas have materially equivalent corporate governance protections.
On April 24, originally the date marked for shareholders to vote on the merger, eXp announced it would be delaying the vote to May 8, “in order to give all stockholders the fullest opportunity to make their voices heard.”
Lutz v. HomeServices: All defendants settle homebuyer claims through Tuccori Opt-in
HomeServices of America, Inc., BHH Affiliates, LLC, and HSF Affiliates LLC have reached an opt-in settlement in Tuccori, et al. v. At World Properties LLC resolving all residential homebuyer antitrust claims against them that were not released in their previous seller-side settlement.
The HomeServices defendants are the last defendants from the Burnett seller trial to settle buyer-side claims, with Anywhere Real Estate, NAR, Howard Hanna Holdings and Douglas Elliman having also settled through the same court-approved Tuccori opt-in procedure.
With all four defendants now having settled residential homebuyer claims not covered by their earlier seller-side antitrust settlements, the litigation landscape has substantially consolidated.
The settlement filing was submitted to the Southern District of Florida on April 20 and the Tuccori plaintiffs are expected to move for preliminary approval in the Northern District of Illinois.
Braxton v. Bank of America: Fair housing appraisal discrimination claim
A Black homeowner sued Bank of America and an appraiser alleging racial discrimination after receiving a significantly low appraisal for an investment property ($135,000 versus a later independent appraisal of $208,000).
Darchelle Braxton claims the appraiser objected to a Black woman owning the property rented by a white tenant, and alleges disrespectful treatment from bank loan officers who delayed and obstructed her application.
She applied the same appraisal to Guild Mortgage, which approved her loan “with minimal hassle,” and is seeking $250,000 in damages under Fair Housing Act, civil rights and Equal Credit Opportunity Act claims.
