Pennsylvania judge Paula Patrick ruled against Keller Williams BlackLabel and in favor of Serhant, whose eponymously named brokerage expanded into Philadelphia’s luxury market in 2023.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
After 18 months fighting in court, Ryan Serhant has won a legal battle filed by a competing luxury real estate brokerage over his firm’s entry into the Philadelphia market.
Judge Paula A. Patrick on Tuesday granted Serhant’s motion to dismiss the case before it went to trial in the Philadelphia Court of Common Pleas.
Serhant was battling Keller Williams BlackLabel and The Condo Shop after his firm moved into Philadelphia and recruited employees from the Keller Williams franchise.
The lawsuit accused Serhant and his Philadelphia team lead, Andrea Desy Edrei, of “plundering its clients, intellectual property, confidential information and personnel, while crippling its ability to operate.”
The case had been trending in favor of Serhant, as the judge had previously ruled that his team could continue operating in Philadelphia as the case unfolded in court. Both Serhant and his eponymously named brokerage, SERHANT., were named as defendants, as well as Desy Edrei.
The court had previously ruled that Serhant’s actions didn’t irreparably harm BlackLabel. Tuesday’s order ended the case.
“An essential element of all of these claims is damages, and Plaintiffs have not provided evidence of what their damages are, or of a causal link between Defendants’ actions and any damages,” Patrick wrote in her ruling.
Serhant launched Serhant Societe Select in April 2023 to serve the Philadelphia market.
After entering the market, Serhant named Desy Edrei as operating partner. Desy Edrei previously worked as managing partner at Keller Williams BlackLabel.
The companies sought more than $10 million in damages, plus punitive damages from Desy Edrei’s departure from Black Label in order to lead Serhant’s expansion in the state.
BlackLabel claimed that Desy Edrei and others took trade secrets and client information with them to Serhant. The judge said evidence presented in court disputed this claim.
“The Edrei defendants asset that Andrea Edrei downloaded her own client contact list from Constant Contact and brought it with her to Serhant,” Patrick wrote. “For all these reasons, summary judgment is granted on this claim.”
Serhant officials declined to comment on the ruling, saying instead that the order would speak for itself.
BlackLabel representatives referred questions to their legal counsel.
“We disagree with the Court’s decision and intend to appeal it,” Lewis W. Schlossberg, an attorney representing BlackLabel, said in a statement.
Editor’s Note: This story was updated with comment from BlackLabel’s counsel that was received after the article was published.