Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Federal lawmakers investigate MRED-Compass partnership
A federal congressional committee sent letters to Compass CEO Robert Reffkin and MRED CEO Rebecca Jensen in relation to their partnership, scrutinizing the relationship between the nation’s largest brokerage and the Chicago-based MLS that is already at the center of a federal lawsuit.
The letters were penned by a subcommittee of the House Judiciary Committee and focus on private listings, alleging the partnership could harm consumers through reduced transparency or competition. RISMedia obtained one letter, addressed to Reffkin and signed by Scott Fitzgerald, Republican chair of the Subcommittee on the Administrative State, Regulatory Reform, and Antitrust.
The letter focuses on “allegations that certain real estate companies have engaged in anticompetitive practices designed to insulate themselves from competition at the expense of consumers,” and requests a “briefing” on Compass’s business practices, including private listing networks and the MRED partnership “no later than 10 a.m. (eastern time) on August 5.”
Compass previously declined to comment. MRED told RISMedia that it was “look(ing) forward” to “helping the committee understand our business practices.”
eXp defendants file motions to limit assault-allegation evidence before trafficking trial
Defendants and plaintiffs filed multiple requests to narrow the evidence a jury can hear in Anya Roberts v. eXp Realty, LLC, a human-trafficking suit before Judge André Birotte Jr. in the Central District of California.
In a filing, defendants seek to bar reference to post-March 2020 internal investigations into allegations of assault, drugging or sponsorship-change requests, arguing the probes postdate Roberts’ claims and never concerned her.
In a separate filing, eXp Realty, eXp World Holdings and CEO Glenn Sanford argued that Ninth Circuit precedent bars such “oath-helping” testimony and that admitting it would be “reversible error.”
A handful of other requests sought to prevent the jury from hearing about Sanford’s personal wealth, as well as bar certain expert testimony, including by a witness set to testify that eXp is a multi-level marketing scheme, and another witness speaking on whether eXp properly vetted the agents accused of assault—with specific disputes over state regulations governing real estate vetting procedures.
Roberts alleges defendants David Golden and Michael Bjorkman drugged and sexually assaulted her and that the eXp entities knowingly benefited; Birotte will hear the motion Aug. 14, ahead of an Aug. 31 trial.
Another, larger case involving four other women who have made similar allegations recently had its trial date pushed back, after a judge found plaintiffs plausibly alleged that eXp lied and misrepresented its attempts to investigate Golden and Bjorkman after their conduct came to light.
Gibson plaintiffs move to force third-party MLS data production in NAR commission case
Plaintiffs in the consolidated Gibson v. National Association of Realtors (the first Burnett copycat case) have asked Judge Stephen Bough to enforce certain provisions of opt-in settlement agreements signed by more than 500 MLSs, arguing those MLSs already consented to third-party production of their listing and commission data.
The July 22 motion targets a standoff with MLS platform provider Financial Business Systems (FBS), which holds data for more than 100 MLSs but refused an April subpoena, instead unilaterally notifying its clients without citing their settlement obligations.
According to the plaintiffs, MLSs have refused to provide data as required by their opt-in provisions, and FBS has referred plaintiffs back to the individual MLSs, even as plaintiffs argue the vendor is also obligated to provide the data.
Plaintiffs propose giving opting-in MLSs seven days to object, after which non-responding MLSs would be deemed to have authorized production by court order. They called the request time-sensitive given class-certification deadlines.
Lawsuit filed against CrossCountry Mortgage and Class Valuation
CrossCountry Mortgage and Class Valuation are facing a lawsuit for alleged inflation of appraisal fees.
Florida resident and recent homebuyer Clayton Bernholtz filed the suit against the two, alleging “unjust enrichment” via overcharging borrowers for appraisals, while also withholding fee breakdowns from consumers.
According to the suit, these appraisal fees range from $450 to over $1,000, and the plaintiff himself paid a $700 fee for his own appraisal prior to closing on his home with CrossCountry Mortgage. He described the fee as an appraisal fee and an “undisclosed management fee.”
