NAR’s motion to dismiss broker fee lawsuit shut down

Country’s biggest brokerages accused of violating antitrust laws

TRD NATIONAL /
Oct.October 06, 2020 09:45 AM
NAR CEO Bob Goldberg (iStock; NAR)

NAR CEO Bob Goldberg (iStock; NAR)

A federal judge has denied a motion to dismiss a lawsuit over broker commissions on residential real estate deals.

A U.S. District Court judge threw out motions from the National Association of Realtors and some of the nation’s largest brokerages to dismiss the lawsuit, Inman reported. The judge ruled that the plaintiffs’ allegations show that they would have paid lower commissions if the current broker rules had not been in place, and that the rules established by NAR created an artificially high commission rate.

The lawsuit was originally filed in 2019 by a property seller, and is now seeking class action status. The complaint alleges that the sharing of commissions between the listing and buyer brokers leads to higher seller costs and violates the Sherman Antitrust Act.

NAR argued in its motion that the lawsuit misportrayed the rules for multiple listing services, and that the plaintiffs failed to show they suffered an “antitrust injury,” according to Inman.

But the judge who dismissed the motion disagreed, and wrote in his ruling that, “But-for Defendants’ conspiracy, each plaintiff would have paid substantially lower commissions.”

“As the case moves forward, we intend to demonstrate how the MLS system creates competitive, efficient markets that benefit home buyers and sellers as well as small business brokerages,” a NAR spokesperson told Inman.

The other defendants in the lawsuit are HomeServices of America, Keller Williams, RE/MAX, Realogy, Long & Foster Companies HSF Affiliates. Those firms backed NAR’s motion to dismiss the suit, and those requests were also dismissed by the judge.

[Inman] — Keith Larsen


Related Articles

arrow_forward_ios
Planet Hollywood in Times Square and Vornado CEO Steven Roth (Photos via Getty; VNO)

Vornado sues Planet Hollywood for $6M in missed rent

Vornado sues Planet Hollywood for $6M in missed rent
Redfin CEO Glenn Kelman (Photos via Redfin; Getty)

Redfin accused of redlining in lawsuit

Redfin accused of redlining in lawsuit
Red Apple Group’s John Catsimatidis and Muss Development’s Jason Muss (Getty; iStock)

Four Brooklyn landlords accused of illegally inflating rents

Four Brooklyn landlords accused of illegally inflating rents
A study found that NYC renters lose $178M per year due to long-term rentals being reallocated to the short-term market (Getty; Pixabay)

Airbnb costs New York City renters $178M a year: study

Airbnb costs New York City renters $178M a year: study
111 West 57th (Photo via FDNY Twitter)

Spinning crane at 111 West 57th Street casts debris on street

Spinning crane at 111 West 57th Street casts debris on street
Cohen Brothers' Charles Cohen and Stephen Fredericks (Getty; iStock; LinkedIn)

Cohen Brothers employees allege harassment, endangerment

Cohen Brothers employees allege harassment, endangerment
Caliber Home Loans CEO Sanjiv Das and AmeriHome CEO Jim Furash (Photos via Caliber Home Loans; AmeriHome; iStock)

Two mortgage companies delay IPOs amid market volatility

Two mortgage companies delay IPOs amid market volatility
Denizen Bushwick at 54 Noll Street (Photos via Denizen Bushwick)

All Year nears $650M financing for Bushwick luxury rentals

All Year nears $650M financing for Bushwick luxury rentals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...