Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
CoStar Granted Expedited Discovery in Realtor.com’s Data-Theft Lawsuit
CoStar Group’s application to expedite discovery in the data-theft lawsuit filed against them by Move, Inc. (Realtor.com®’s parent company) has been granted by the court.
On August 1 after hearing oral arguments, Judge George H. Wu granted the application. Wu also granted CoStar’s request for a hearing in late September.
“We are delighted that the Court rejected Move’s attempt to obtain an injunction without discovery, and granted CoStar’s request for discovery from Move, and for a hearing in September,” Gene Boxer, CoStar Group’s general counsel, said in a statement. “We have said all along that Move’s case is a PR stunt, and Move’s attempt to hide the facts was in line with that. We look forward to holding Move to account.”
A spokesperson for Move, Inc. disputed this characterization in a statement to RISMedia last week.
“Although CoStar initially denied any wrongdoing, they have put their employee on leave,” the spokesperson said. “The judge stated that if Kaminsky has accessed our confidential files, ‘he has done something that is clearly improper, and it seems to me they have some evidence of that, which is somewhat problematic.’ We couldn’t agree more.”
eXp Claims Harsh MLS Penalties From Settlement Will Drive Consolidation
eXp is seeking to position itself as a safe haven for agents worried about navigating the upcoming changes created by the National Association of REALTORS®’ (NAR) settlement, set to go into effect on Aug. 17, speculating that transitioning will be difficult for smaller companies and claiming that MLSs are mulling extremely harsh penalties for agents who violate the agreement.
The company is particularly focused on prepping for what CEO Leo Pareja described as a potentially turbulent several months starting in the next few weeks—although eXp hopes to use this to their advantage.
“I’ve been trying to brace the industry because (there is) this kind of collective pulling of their head out of the sand and having this ‘oh no’ moment that we’re kind of witnessing specifically this week,” Pareja said in response to an investor question. “You guys have all heard me talking about this without pause since the news broke in March…it’s been a very offensive strategy of education.”
Pareja noted that various teams and brokers have decided to affiliate with the company, specifically looking for an organization that can help them navigate the upcoming transition, pushing them to join companies with the resources or insights to handle those things.
eXp also recently released a standard listing agreement that explicitly does not allow for sharing commission with buyer agents, but still allows sellers to directly pay buyer commission through concessions.
eXp general provisions rules and schedule for hearing; video allowed
According to court documents, eXp has struck an agreement on discovery and depositions with women who are suing the company under a federal sex trafficking statute.
Regarding locations for depositions (to occur within the next two months), “If the Parties Notice or Cross-Notice a deposition in-person, the deposition will be taken at a location within the district where the witness resides or works, unless otherwise agreed upon for the convenience of the deponent and counsel.”
Those able to attend depositions consist of “counsel of record attorneys and employees of their firms; attorneys specifically engaged by a Party for purposes of the deposition; Parties or in-house attorneys of a Party; court reporters; videographers; the deponent; and counsel for the deponent.”
Additionally, video recording is allowed regarding dispositions, but must be recorded by a court reporter.
“By so indicating in its notice of a deposition, a Party, at its expense, may record a deposition by videotape or digitally-recorded video.”
Zillow and MLSs resolve lawsuit
Zillow and three MLSs finalized a settlement agreement in an antitrust lawsuit over its ShowingTime software. The portal giant alleged the MLSs conspired to use “monopoly power” to undermine its product in favor of a new service they owned.
Court filings previously telegraphed that the case was on track to resolve.
In a joint statement, Zillow and the MLSs said “We are pleased to announce that Zillow, ShowingTime+, MLS Aligned, ARMLS, and METRO MLS have come to a resolution. All parties are committed to enhancing the showing experience for their members. With this resolution, optional integration and use of both Aligned Showings and ShowingTime will be available within MLS Aligned regions, including ARMLS and METRO MLS.”
