Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
NAR settlement approved; DOJ still expressing interest
At the long-awaited hearing November 26, Judge Stephen R. Bough granted final approval of NAR’s settlement for its commission lawsuits across the board. The organization and others who opted into the settlement have now been granted immunity from class-action lawsuits by homesellers with civil claims regarding mandatory offers of compensation.
“This is an important moment for NAR members, homebuyers and sellers, and the real estate industry,” said NAR President Kevin Sears, broker-associate of Sears Real Estate/Lamacchia Realty in Springfield, Massachusetts. “As consumer champions, NAR’s members have been working tirelessly to implement the practice changes required by the settlement and shepherd consumers through this period of transition. The principles of transparency, competition and choice are core to the settlement agreement and empower real estate professionals and consumers to negotiate the services and compensation that work for them.”
The DOJ, however, has stated their interest in still pursuing NAR and the real estate industry for antitrust violations. Nearly 48 hours before the hearing, the DOJ filed its Statement of Interest (SOI) in the Burnett v. NAR et al lawsuit, which stated its opposition to buyer-broker agreements and how they could create further antitrust issues.
“It (buyer-broker agreements) bears a close resemblance to prior restrictions among competitors that courts have found to violate the antitrust laws in other proceedings and could limit—rather than enhance—competition for buyers among buyer brokers,” the filing says.
The DOJ’s SOI stated it would appear at the settlement approval hearing to say its piece, and sent Chris Bauer, a trial attorney for the DOJ Antitrust Division, to speak.
Bauer stated that the DOJ would not “waive any right” to file cases in other federal districts—something that NAR had specifically asked Bough to work into his approval order.
“NAR itself has made clear that it is only required to follow provisions of the settlement insofar as they are not illegal,” Bauer said, noting that the DOJ has a different responsibility than private plaintiffs and has been “investigating issues in the real estate space for decades.”
Baird & Warner settles
Baird & Warner has settled its homeseller commission lawsuits via negotiations in the Gibson case.
“(Plaintifs) Don Gibson, Lauren Criss, John Meiners and Daniel Umpa and Defendant Baird & Warner Real Estate, Inc. respectfully provide notice to the Court that the Parties have reached a binding term sheet to settle all claims asserted against Baird & Warner in the above-captioned consolidated action as part of a proposed nationwide class settlement,” the filing states.
The recently filed settlement does not name any monetary amount or other provisions.
Baird & Warner is also negotiating a settlement in the Maslanka case, as that is a buyer-based case and is not clear whether it could be included in this settlement.
