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 FTC in Zillow-Redfin suit
A federal judge denied the Federal Trade Commission’s (FTC) and states’ motion for partial summary judgment, sending disputes over market definition and the deal’s alleged illegality to trial.
In the order, U.S. District Judge Anthony Trenga found that genuine disputes of material fact exist over the relevant product market, the relevant geographic market and the “presumptive illegality” of the defendants’ challenged conduct under relevant antitrust laws—among other issues.
The ruling is a procedural win for Zillow and Redfin, though not a decision on the merits. Rather than resolve those questions before trial in the government’s favor, the court will leave them to be decided on a full discovery record.
Zillow refutes arbitration in Zillow v. MRED, Compass
In a July 6 filing, Zillow urged a federal judge to reject MRED’s bid to force the parties’ dispute into arbitration, arguing the MLS never secured Zillow’s agreement to arbitrate and misled the court about the reach of the listings.
Zillow argued that MRED cannot invoke the arbitration clause of a separate MLS Grid Agreement it never signed as a “Party,” and that it failed to carry its burden of proving a valid arbitration agreement under a previous court ruling.
“MRED has not carried its burden to establish a ‘written agreement’ by which Zillow agreed to arbitrate this dispute against MRED. Its attempts to undermine the direct written agreement that governs Zillow and MRED’s relationship are unavailing,” Zillow wrote.
Zillow also asked the court to complete the preliminary injunction proceedings, issue an injunction binding at least Compass, and deny the motion to compel arbitration and stay in its entirety.
Real estate company accused of deceptive practices banned in Georgia
Georgia’s Attorney General says hundreds of homeowners will be getting refunds after the state won a million-dollar settlement against a real estate company accused of trapping customers in decades-long contracts, according to local news channel WSB-TV2 in Atlanta.
Georgia sued the Florida-based company MV Realty after a multi-year Channel 2 Action News investigation. The money will be paid to more than 400 homeowners who were forced to pay early termination fees.
The state says the company promised homeowners quick cash but instead left thousands of Georgians tied to decades-long contracts that amounted to liens on their properties. Homeowners were locked into the deals for 40 years. MV Realty can no longer do business in the state of Georgia, and was ordered to pay $1 million in consumer restitution.
