The third time was, indeed, the charm.
Following multiple revisions and extensions to address concerns from the court and the Department of Justice (DOJ), U.S. District Court Judge Patti Saris has granted preliminary approval for the fourth amended settlement agreement in the Nosalek v. MLS Property Information Network (MLS PIN) case, the first commission case to settle way back in 2023.
The approved settlement agreement is in line with the National Association of REALTORS®’ settlement, said Seth Klein, a lawyer representing the plaintiffs, in a hearing today.
“The fourth amended settlement agreement—which removes the ability of listing brokers to put cooperative compensation on the service—brings this settlement in accord with the Missouri settlement that also prohibits such listings,” Klein said.
The other change addresses Judge Saris’ concerns over class expansion, which led her to delay preliminary approval during the last hearing April 1, calling for a revised agreement by April 22, and two subsequent extensions.
“We also took out the commercial real estate that, Your Honor, indicated you would not certify a class that included sellers of commercial real estate, so that is now gone, as are mobile homes,” added Klein.
What about the DOJ?
Last week, the DOJ filed an official statement, in which it withdrew its objections from the settlement, yet did not waive its right to enforce future action on the MLS PIN, if necessary.
Referring to the memo she received from the DOJ, Judge Saris said she was “very pleased” with the decision and added how this case set a new record for her.
“I received a memo from the DOJ reserving certain rights on their part, but basically approving the settlement, as is, between private parties. So I was very pleased with this. This case actually wins a record for me,” she added. “I’ve never, I think, rejected so many preliminary proposals, and it’s come a huge, long way.”
Bigger picture
Although it still isn’t clear what each person will receive from the settlement, since it will be “prorated based on how much their property is worth,” and that “even under the best case scenario…it’s not a huge amount of money,” Saris made it clear that this case is making progress in addressing commission fees.
“Nonetheless, I think it moves the needle a little bit in terms of fixing the issue, with respect to the buyer broker fees,” she said.
Before ending the hearing, Judge Saris admitted she wasn’t sure if this approval would come or not.
“I wasn’t sure I was going to approve it at the end. I’ve received, as I think I put on the docket, several objections, so we may get objections even at the end. I’m not sure if this fixed it or not, but I did put them on the docket, the concerns.”
One of the concerns, also discussed during the April 1 hearing, seemed to be agreed upon, as they decided to send notice over snail mail versus social media.
For the time being, Judge Saris plans on holding the final hearing on September 29 at 2:30 p.m. in Boston.
