Howard Hanna Freed From Homebuyers Commission Suit

One of the largest commission lawsuits facing the residential real estate industry is moving forward with one fewer defendant.

The plaintiffs of a homebuyer lawsuit based in Illinois — known as Batton II — dismissed the claims against Howard Hanna Real Estate Services, HousingWire reported. The dismissal was made voluntarily and without prejudice, meaning claims can be refiled at some point.

It wasn’t entirely clear why the plaintiffs decided to spare Howard Hanna from the ongoing case, which hasn’t yet reached trial. The plaintiffs claim it’s because the brokerage hasn’t served and answer or filed a motion for summary judgment, according to court documents.

Howard Hanna declined comment to the outlet.

The plaintiffs of Batton II filed their lawsuit in the immediate wake of a guilty verdict from the jury in Sitzer/Burnett, a monumental defeat for the National Association of Realtors, Keller Williams and HomeServices of America. Unlike Sitzer/Burnett and many of the commissions suits of recent months, Batton II pertains to homebuyers, rather than homesellers.

The plaintiffs allege they were overcharged in purchasing their homes, claiming they couldn’t negotiate the compensation paid to their agent. The case is much larger than Sitzer/Burnett, according to Inman, as the plaintiffs seek class-action status on behalf of both a “Nationwide Class” and “Damages Class,” which could rope in millions of consumers across the country.

“Defendants’ unlawful, anticompetitive conduct causes America’s home buyers to pay inflated commissions for broker services they misrepresent as free, to pay inflated prices for the homes they purchase, and to receive reduced quality broker services,” the complaint said.

Other defendants in Batton II are Compass, eXp World Holdings, Redfin, Weichert Realtors and United Real Estate.

Howard Hanna is also a defendant in Umpa, a commission lawsuit based in Missouri, just like Sitzer/Burnett. Last week, Howard Hanna’s parent company filed a motion to dismiss itself from the case.

— Holden Walter-Warner