Missouri jury hits NAR, real estate companies with $1.8 bln in damages (updated)

Re/Max Holdings

31/10/2023 19:12

(Adds details of case, verdict in paragraphs 2-17)
    By Mike Scarcella
       Oct 31 (Reuters) - A U.S. jury in Missouri on Tuesday
said the National Association of Realtors and several real
estate companies together owe more than $1.7 billion in class
action damages, finding they conspired to artificially drive up
the commission that home sellers pay to buyers' brokers.
    The verdict followed a two-week trial in federal court in
Kansas City, where the case had drawn widespread attention for
challenging widely used real estate industry practices.
    The jury award will be automatically tripled under U.S.
antitrust law to more than $5.3 billion, said Michael Ketchmark,
the lead lawyer for the plaintiffs. "Today was a day of
accountability," Ketchmark said. 
    The defendants also included Keller Williams and Berkshire
Hathaway  BRKa.N -owned HomeServices of America and two of its
subsidiaries. The class members include sellers of more than
260,000 homes in Missouri and parts of Kansas and Illinois
between 2015 and 2012.
    HomeServices said it was disappointed by the verdict and
planned to appeal.
    Keller Williams spokesperson Darryl Frost said the company
would consider options for an appeal. "This is not the end,"
Frost said.
    A spokesperson for the National Association of Realtors,
Mantill Williams, also said it would appeal and ask the court to
reduce the damages amount.
    The plaintiffs claimed the association and corporate
defendants drove up the commission, upwards of 6%, that home
sellers pay to brokers representing buyers.
    The home sellers called the compensation rule "a
market-shaping and distorting rule that has severe
anticompetitive effects."
    The realtors association, Keller Williams and HomeServices
have denied any wrongdoing.
    Two other defendants, Re/Max  RMAX.N  and Anywhere Real
Estate  HOUS.N , agreed to settlements without admitting
liability before the trial. Anywhere planned to pay $83.5
million, and Re/Max said it would pay $55 million, pending court
approvals.

 (Reporting by Mike Scarcella in Maryland; Editing by David
Bario, Chizu Nomiyama and Jonathan Oatis)
 ((thomas.hals@thomsonreuters.com; +1 610 544 2712; Reuters
Messaging: thomas.hals.thomsonreuters.com@reuters.net))