Compass responded Wednesday to the Corcoran Group’s lawsuit against it, saying in a statement to The Real Deal that the New York State Supreme Court has “flatly rejected” Corcoran’s complaints against the startup brokerage.
According to Compass, the “Court scoffed at Corcoran’s attempt to prevent its agents from working for Compass and merely instructed Compass’ personnel to continue complying with Company policies already in place — not accessing others’ listings databases and following existing non-solicit agreements.”
The firm added that the court allowed it “to continue operating its business as usual, which, according to the Court, may include Compass’ recruitment of Corcoran employees and agents.”
Documents from the court hearing Tuesday are currently sealed, and as such, Compass’ statements about the hearing could not be independently verified. In a statement, Corcoran said the firm does not comment on ongoing litigation.
On Monday, TRD first reported on Corcoran’s legal action, which accused Compass of using “unlawful methods” in a “coordinated, multi-front assault of unfair competition” and sought a temporary restraining order against Compass. The suit also named former Corcoran agents and managers who are now at Compass.
The next day, TRD reported on the job offer that Compass made to Gene Martinez, the former manager of Corcoran’s Soho office. Corcoran included a copy of the offer letter in its suit against Compass, as support for its claim that Martinez violated his noncompete agreement with the firm.
In Wednesday’s statement, Compass said, “No agents should feel trapped by the threat of being sued just for exercising their independence and deciding to change firms.”