California home sellers sue brokerages, trade groups over commissions (updated)

Agnt

11/12/2023 21:09

(Updates with additional comment, case info)
    By Mike Scarcella
       Dec 11 (Reuters) - A prospective class of home sellers
in Northern California has sued Re/Max  RMAX.N , Keller Williams
and other national real estate brokerages and realtor trade
associations, accusing them of conspiring to artificially
inflate the commissions paid to buyers' brokers.
    The lawsuit, filed in U.S. federal court in San Francisco on
Friday, also named as defendants the National Association of
Realtors, property-listing database Bay Area Real Estate
Information Services, and real estate brokerages Anywhere
 HOUS.N , Compass  COMP.N  and eXp World Holdings  EXPI.O . 
    The plaintiff, a Marin County woman, brought the case on
behalf of a proposed class of home sellers in Marin, Mendocino,
Napa, Solano and Sonoma County. She claimed violations of U.S.
antitrust provisions and California's unfair competition law.
    The case is one of a growing number of lawsuits filed after
an Oct. 31 jury in Kansas City, Missouri, federal court awarded
nearly $1.8 billion in damages to a class of home-sellers who
sued over the buyer-broker commission. Commissions in the U.S.
can run 5% to 6%, or more, of the sale of a home.
    Similar lawsuits challenging the industry's commission
practices have been filed in recent weeks in federal courts in
Texas, Pennsylvania and New York.
    Mantill Williams, a spokesperson for the Chicago-based
National Association of Realtors, on Monday defended the
commission practice, saying it makes "efficient, transparent and
accessible marketplaces possible."
    The association denied any wrongdoing in the Kansas City
litigation and has vowed to appeal.
    Keller Williams said it has "followed the law regarding
cooperative compensation and will vigorously defend ourselves
against this lawsuit." eXp said it was "committed to upholding
fair and transparent practices compliant with law."
    Representatives from Re/Max, Compass, Anywhere and Bay Area
Real Estate Information Services did not immediately respond to
requests for comment. 
    Daniel Warshaw, a lawyer for the plaintiff, declined to
comment.    
    Re/Max and Anywhere were also defendants in the Kansas City
case but reached settlements with the plaintiffs prior to trial.
Those settlements are subject to court approval.
    In Washington, D.C., the National Association of Realtors
and the U.S. Justice Department are facing off over the
government's bid to revive a probe of industry home-sale rules.
    The lobbying group this month told an appeals court that the
government had closed its investigation and should not be
allowed to reopen it.    
    The case is Grace v. National Association of Realtors, U.S.
District Court for the Northern District of California, No.
3:23-cv-06352.
    For plaintiff: Jill Manning and Daniel Warshaw of Pearson
Warshaw; Douglas Millen of Freed Kanner London & Millen
    For defendants: No appearances yet
    
    Read more:
    Texas home sellers sue over inflated broker commissions
    Manhattan real estate brokerages are sued for inflating
commissions
    Real estate commission defendant Keller Williams turns to
lawyer Paul Clement for antitrust appeal



 (Reporting by Mike Scarcella)
 ((Mike.Scarcella@thomsonreuters.com;))