Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Zillow-MRED-Compass Heads for Testimony July 1-2
RISMedia will be on the ground in Chicago July 1-2, covering the high-stakes trial between Zillow, Midwest Real Estate Data (MRED) and Compass.
The preliminary injunction hearing will be before Judge John Tharp and will likely include testimony from the company’s CEOs, including Zillow CEO Jeremy Wacksman, MRED CEO Rebecca Jensen and Compass International Holdings CEO Robert Reffkin.
Zillow first filed its suit against MRED and Compass on May 12, asking the court for a preliminary injunction and MRED threatened to cut off Zillow’s access to its feed by May 19 before midnight. MRED briefly followed through on its threat before Judge Tharp ordered MRED to restore the feed—and compelled Zillow to carry a handful of previously banned listings.
According to court filings, post-hearing briefs on the preliminary injunction are due by July 9, though when Tharp will rule is unclear.
Hardy case against NAR goes to Sixth Circuit
A federal antitrust lawsuit challenging the National Association of Realtors®’ (NAR) mandatory membership structure is heading to appeals court after a Michigan district court judge threw it out earlier this year.
Plaintiffs Douglas Hardy, Glenn Champion and Dylan Tent—Michigan-based brokers and agents—filed their opening brief June 19 with the U.S. Court of Appeals for the Sixth Circuit, asking the court to reverse a March 30 dismissal and send the case back for further proceedings.
In a statement to RISMedia, an NAR spokesperson noted that they believe the Court’s decision to dismiss the case was correct and well-reasoned, reinforcing that NAR’s policies foster competition and are not discriminatory.
“Like other national membership organizations,” they continued, “NAR’s integrated structure is essential to the value we provide our members, and we remain committed to policies that promote competition, transparency, and value for brokers and consumers alike. We will continue to defend our position on appeal.”
Darryl Davis Seminars files lawsuit over POWER AGENT® trademark
Darryl Davis Seminars, Inc. has filed a federal trademark infringement lawsuit against Epique Realty in the United States District Court for the Southern District of New York over Epique’s unauthorized use of the POWER AGENT® trademark.
The complaint alleges that Epique Realty, a Houston-based virtual brokerage operating in all 50 states, willfully adopted the mark and built an entire brand architecture around it despite being put on notice and asked to stop.
“Our members identify as POWER AGENTS®,” said Darryl Davis, founder and CEO of Darryl Davis Seminars. “It stands for a particular standard of integrity,
honesty, and a commitment to serving people, not selling to them. They carry that
designation into their markets. They are listed in the national referral directory and follow a Code of Ethics. When someone takes that name and uses it to mean something else, our members feel it. And so do I.”
NAR demands communications documents from rival association
NAR, in a lawsuit filed by a private listing startup, thePLS.com, is now seeking to scrutinize the communications of the American Real Estate Association (ARA, a competing association).
In a court filing last month, NAR subpoenaed communications and documents involving thePLS.com (a now-defunct listing platform that sued NAR over the Clear Cooperation Policy back in 2020) and ARA, along with documents and communications related to the (also defunct) “NAR Accountability Project.”
Supreme Court blocks Trump from firing Fed members
The Supreme Court, on Monday, expanded presidential power by affirming President Donald Trump’s ability to fire most independent regulators, though the justices explicitly affirmed the Federal Reserve’s independence and said its leaders could not be dismissed at will.
In light of the ruling, Trump noted, on Truth Social, that this was “strictly procedural” and that appropriate action would be taken immediately against Lisa Cook, who he has tried to fire in the past.
Following the news, Federal Housing Director Bill Pulte posted on X, “As I have repeatedly said, I believe Lisa Cook will be indicted for mortgage fraud.”
Trump has sought to pressure members of the Fed as he demands lower interest rates. Kevin Warsh, who Trump hand-picked to take over as chair of the central bank, assumed the role last month, after Jerome Powell finished his term.
Real Broker, Frano Team dismissed from Zillow RESPA lawsuit
A federal judge has ordered two of the real estate defendants in the high-stakes Taylor v. Zillow class-action lawsuit to resolve their claims through arbitration, effectively pulling them out of court proceedings for now.
U.S. District Judge James L. Robart granted a motion to compel arbitration filed by Real Broker, LLC and Florida-based Frano Team on June 23, staying the case against both defendants pending the outcome of that process. The Zillow entities—Zillow, Inc., Zillow Group, Inc., Zillow Homes, Inc. and Zillow Home Loans, LLC—are not directly affected by the ruling and remain named in the lawsuit.
Plaintiffs subsequently dropped the case against Real and the Frano Team.
Zillow, Redfin oppose FTC bid to shortcut antitrust trial
Zillow and Redfin have asked a federal court to deny the FTC’s motion for partial summary judgment in the rental listings antitrust case, arguing the government is trying to predetermine “fact-intensive” trial questions on a “one-sided” rendition of the record.
The brief contests three issues.
On standard of review, defendants argue the “quick look” framework the FTC seeks applies only where courts have extensive experience condemning similar agreements—and exclusive ILS syndication deals have never been challenged, with six such agreements existing in the industry since 2015.
On market definition, defendants say the FTC’s “ILS-only” market ignores that property managers and owners (PMCs) allocate roughly half their budgets to non-ILS sources like Google and social media and shift spend between them based on performance.
On a specific antitrust claim, defendants argue a structural merger presumption doesn’t apply to a syndication agreement and that seeking summary judgment on a “rebuttable presumption” has no precedent in relevant passage’s century-plus history.
Pennsylvania broker challenges state’s physical office mandate
A Pennsylvania broker has filed a constitutional challenge to the state’s requirement that licensed real estate brokers maintain a physical in-state office, arguing the 1929-era rule is anticompetitive and costs him roughly $35,000 a year for a space he never uses.
Kevin Gaughen, broker/owner of Gaughen Home Realty in Pennsylvania, contends the mandate violates the Pennsylvania Constitution’s protections for the right to earn a living, bears no real relationship to consumer protection and exists primarily to shield larger brokerages from competition.
Newrez settles pay-to-pay case
Newrez, sued by borrower Eugenio Alvarez in 2024, has agreed to settle a pay-to-pay case that was moving toward a class-action lawsuit.
Alvarez accused the company’s subsidiary of up-charging borrowers with $7.50 fees to process mortgage payments via telephone. He was in the process of asking the judge for class certification.
