The legal drama in the real estate arena continues to unfold. This time, it’s HomeServices of America asking for a federal court to dismiss an antitrust lawsuit filed by Homie Technologies, according to a new motion for dismissal filed Friday with the U.S. District Court for the Central District of Utah.
HomeServices of America requested the dismissal because Homie’s lawsuit claims are “stale” and “untimely,” according to the motion. This newest legal face-off began over the summer when Homie filed an antitrust lawsuit claiming that the National Association of REALTORS® (NAR) and other companies (including HomeServices) “conspired” to prevent innovation and boycott low-commission listings.
Founded in 2015, Homie is a Utah-based, flat-fee real estate services firm that claims it suffered from “express and tacit boycotts” because real estate companies were “steering buyers away from” its listings through Clear Cooperation policies. Other firms named as defendants in the lawsuit are RE/MAX, Anywhere Real Estate, Keller Williams Realty and Utah-based Wasatch Front Regional MLS.
However, HomeServices’ motion called Homie’s lawsuit timing into question, arguing the statute of limitations on each of Homie’s claims is four years for alleged violations of the Sherman Act, the Utah Antitrust Act and White v. Wiseman, a Utah case involving tortious interference.
The rules in question include NAR’s Buyer-Broker Compensation Rule, Commission-Filter Rules and Practices, the Free-Service Rule, Commission-Concealment Rules and Clear Cooperation Rule, according to court documents. HomeServices’ motion notes that all of these rules were adopted more than four years prior to Homie’s lawsuit filed on August 22.
“And, in a case like this, where the plaintiff alleges an agreement between competitors excluded it from competing, the date of the alleged exclusion controls: When the injury at issue involves exclusion from an industry or market based on an antitrust violation, the excluded would-be competitor typically has knowledge of the ‘public’ act of exclusion, and thus, the injury is felt immediately,” attorneys for HomeServices state in the motion.
Notably, most of the rules cited by Homie have been repealed, modified or are otherwise no longer being enforced (with Clear Cooperation that exception) due to other class-action lawsuits and settlements. HomeServices also noted that class-action lawsuits filed by homesellers have “taken their claims to trial, and extracted nationwide settlements,” meaning Homie cannot claim to be addressing a harm that might otherwise continue to affect more people or entities.
Minnesota-based HomeServices also noted that the case should be dismissed because it and its subsidiary, California-based HSF Affiliates, are not subject to the court’s personal jurisdiction. Both companies are Delaware entities with headquarters in different states and no connections to Utah, the motion explains.
HomeServices was able to successfully argue a personal jurisdiction claim in a separate class-action lawsuit filed by homebuyers, with other major companies pursuing similar legal strategies to some success.
NAR, several large real estate brokerages and some MLSs have been embroiled in a number of antitrust lawsuits alleging that NAR’s rules (and widespread industry participation in them) led to inflating seller-paid broker commissions and stifling competition from smaller real estate market players.
Homie’s lawsuit echoes similar antitrust claims made by REX against NAR and Zillow. That suit was dismissed in 2023 by U.S. District Court Judge Thomas S. Zilly after finding that REX did not adequately make its case that both entities conspired to steer buyers away from listings not connected to NAR on Zillow’s website. REX later appealed that dismissal to the Ninth Circuit.
Homie has demanded a jury trial, seeking unspecified damages and injunctive relief in its lawsuit. Now, the case and HomeServices’ motion for dismissal, awaits action from the U.S. District Court for the Central District of Utah.
Homie could not be reached by phone Friday for comment on HomeServices’ motion for dismissal.
