Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
MLS PIN settlement delayed by judge
At the recent hearing in the notorious case of Nosalek vs. MLS PIN, Judge Patti Saris decided to delay the preliminary approval of the proposed settlement.
Saris cited concerns over class expansion to include commercial and mobile homes, as well as whether or not the seller’s offer to the buyer’s broker should be allowed on MLS PIN—something still allowed in the settlement (despite NAR’s settlement since MLS PIN is independent), but that she and the DOJ agree isn’t a good idea.
“Well at this point, my job is very, very preliminary, which is to find that there’s enough there to find reasonable—and, as I’ve mentioned, I cannot certify a class of the commercial and the mobile homes,” she said. “I am inclined, as a preliminary—and let me underscore preliminary matter—otherwise approve the class. However, I am open at the final stage to information. The thing that raises the biggest red flag is ‘why did NAR agree to it, and the court approve it, and you’re not.’”
The final hearing is set tentatively to sometime in August or September.
eXp and Weichert settlement intervention denied
The attempted intervention by lawyers representing the Burnett plaintiffs into eXp and Weichert’s settlements of their commission lawsuits was recently denied by Judge Mark Cohen.
Lawyers representing plaintiffs in the Western District of Missouri—the same lawyers and court where Burnett and the largest copycat cases have played out—had filed to transfer the case back to their district based on allegations of a “reverse auction” and striking a “sweetheart deal” with eXp and Weichert’s $34 million and $8.5 million settlements.
“There is no question that permitting intervention in this case will thwart, or at least delay, the settlements reached between (Georgia) Plaintiffs and (eXp and Weichert), resulting in prejudice to existing parties,” Cohen wrote.
Cohen said the Burnett lawyers were welcome to object to the settlements, or otherwise participate in the approval process as it played out in his courtroom, rather than have the case transferred to Missouri as they had requested.
In addition, the stay in the Hooper case was just continued in regard to the release of defendants involved in the NAR settlement.
Potential Compass-backed lawsuit against NWMLS forming
A new website called Washington Homeowner Rights—backed by Compass—is asking Homeowners in Washington state to “take action” and join a potential class-action lawsuit against Northwest MLS (NWMLS).
The center of the potential lawsuit’s argument is NWMLS’ use of Clear Cooperation Policy, and how the organization’s ban of pre-marketing and off-MLS marketing leaves sellers “no choice but to fully expose their listing immediately—leading to longer days on market and price reductions that may hurt their bottom line.”
The website is looking to activate Washington state homeowners who sold a home that experienced a public price drop, stayed on the market longer than expected and were unable to protect their privacy during the sale.
Compass confirmed its creation of the website, and affirmed its support of potentially wronged homeowners and their right to privacy and decisions in a spokesperson statement.
Compass CEO Robert Reffkin has frequently spoken out against the Clear Cooperation Policy, while NWMLS CEO Justin Haag has spoken in support of the policy.
RealPage sues City of Berkeley over new ordinance
Real estate software provider RealPage filed a lawsuit against the city of Berkeley, California, to block a new ordinance passed recently that bans the use of algorithmic pricing tools for rental properties.
The filing alleges that the ordinance violates constitutional free speech protections, and claims it was based on misinformation about how rental pricing technology actually works. RealPage argues the ban would prevent property managers from using mathematical tools and public data to make informed pricing decisions.
“This ordinance was adopted based on false claims about our revenue management software,” Dana Jones, RealPage president and CEO, said in a statement. “Our technology contributes to a healthier and more efficient rental housing ecosystem that benefits both renters and housing providers.”
Debbie Potter, chair of the Berkeley Housing Advisory Commission, explained that “(t)his ordinance prohibits the sale or use of algorithmic devices for the purpose of setting rents to bring immediate relief to Berkeley tenants, as well as to put landlords who have been using these devices on equal footing with those who are willing to adhere to fair standards for setting rental rates.”