In addition to Side, the fast-moving case — known as Keel for its lead homeseller — names as defendants Washington Fine Properties, Seven Gables Real Estate, Brooklyn New York MLS and others.
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A new commission lawsuit involving high profile companies such as Side stayed on the fast track this week, securing preliminary approval for a settlement just eight days after it was filed.
The case, known as Keel for its lead defendant, echoes other commission lawsuits in claiming that real estate companies conspired to inflate costs and break antitrust laws.
A group of homesellers filed the suit on January 27, at which time they also filed a proposed settlement that would see a group of real estate companies pay $10,570,000. Filing the suit and a proposed settlement simultaneously is atypical compared to other similar cases, though perhaps not entirely unexpected given that those other cases have set a precedent for companies to settle.
On Tuesday of this week, the judge in the case granted the settlement preliminary approval. In a filing, the judge wrote that the proposed settlement is “fair, reasonable and adequate.” The judge also approved the establishment of an escrow account for the settlement funds.
As was the case in other suits, the settlement still has to receive final approval. The filing does not mention when that might happen.
The Keel suit was filed in the United States District Court for the Western District of Missouri. That’s the same court overseeing other high-profile cases such as Sitzer | Burnett, though a different judge — Fernando J. Gaitan, Jr. — is presiding over the Keel suit.
Of the $10,570,000 in the Keel settlement, Side is by far paying the most. The break down is as follows:
- Side: $5.5 million
- Washington Fine Properties: $1.3 million
- Seven Gables Real Estate: $1 million
- First Team Real Estate — Orange County: $1,000,000
- Signature Properties of Huntington: $850,000
- Cairn Real Estate Holdings, the parent of J.P. Piccinini Real Estate Services (JPAR): $700,000
- Central New York Information Service: $125,000
- Brooklyn New York MLS: $95,000
Contacted by Inman after the suit was first filed, Side denied the allegations but said it is “glad to have this matter resolved.”
Michele Harrington, CEO of First Team Real Estate, told Inman that “as far as the settlement goes, it’s bullshit we were ever put into this situation.” In a subsequent interview with Inman, Harrington slammed the National Association of Realtors and said she was “freaking pissed” that the trade organization excluded brokerages such as hers from its own landmark commission settlement. She also said many brokers not included in NAR’s settlment considered suing, and that even now litigation is “not off the table.”
The comments highlight the fact that though the commission suits are moving toward legal resolutions, frustration among some in the industry remains.