{"id":4207,"date":"2023-04-11T20:44:20","date_gmt":"2023-04-11T20:44:20","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/04\/11\/homeservices-files-motion-to-compel-arbitration-in-agent-commission-case\/"},"modified":"2025-03-13T02:50:29","modified_gmt":"2025-03-13T02:50:29","slug":"homeservices-files-motion-to-compel-arbitration-in-agent-commission-case","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/04\/11\/homeservices-files-motion-to-compel-arbitration-in-agent-commission-case\/","title":{"rendered":"HomeServices files motion to compel arbitration in agent commission case"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/preprod.housingwire.com\/tag\/berkshire-hathaway\/\" target=\"_blank\" rel=\"noreferrer noopener\">Berkshire Hathaway Home Services<\/a> Affiliates<\/strong>, <strong><a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/franchises-continue-to-dominate-the-realtrends-500\/\" target=\"_blank\" rel=\"noreferrer noopener\">HomeServices Franchise Affiliates<\/a><\/strong>, <strong><a href=\"https:\/\/preprod.housingwire.com\/tag\/homeservices-of-america\/\" target=\"_blank\" rel=\"noreferrer noopener\">HomeServices of America<\/a><\/strong>, and <strong><a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/leadership-shake-up-occurs-at-long-foster\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Long &amp; Foster Companies<\/a><\/strong> filed a motion to compel arbitration on Friday in the \u201cMoehrl <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/are-you-prepping-for-possible-commission-lawsuit-outcomes\/\" target=\"_blank\" rel=\"noreferrer noopener\">agent commission<\/a> case,\u201d named after its <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/plaintiffs-in-anti-trust-suit-allege-nar-brokerages-are-making-untimely-document-requests\/\" target=\"_blank\" rel=\"noreferrer noopener\">lead plaintiff<\/a>.<\/p>\n\n\n\n<p>The plaintiffs in the case, which was filed in 2019, allege that the <strong>National Association of Realtors <\/strong>and brokerages such as <strong><a href=\"https:\/\/preprod.housingwire.com\/tag\/re-max\/\" target=\"_blank\" rel=\"noreferrer noopener\">RE\/MAX<\/a><\/strong>, <strong><a href=\"https:\/\/preprod.housingwire.com\/tag\/keller-williams\/\" target=\"_blank\" rel=\"noreferrer noopener\">Keller Williams<\/a><\/strong>, <strong><a href=\"https:\/\/preprod.housingwire.com\/tag\/realogy\/\" target=\"_blank\" rel=\"noreferrer noopener\">Anywhere<\/a><\/strong>, and <strong>HomeServices<\/strong> have engaged in a conspiracy by mandating the NAR\u2019s \u201cbuyer broker commission rule\u201d when listing a property on a MLS. Attorneys for Cohen Milstein argue that the conspiracy has saddled home sellers with a cost that would be borne by the buyer in a competitive market.<\/p>\n\n\n\n<p>\u201cMoreover, because most buyer brokers will not show homes to their clients where the seller is offering a lower buyer broker commission, or will show homes with higher commission offers first, sellers are incentivized when making the required blanket, non-negotiable offer to procure the buyer brokers\u2019 cooperation by offering a high commission,\u201d the plaintiffs argued.<\/p>\n\n\n\n<p>In late March, Judge Andrea R. Wood of the U.S. District Court for the North District of Illinois ruled that the case had achieved <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/judge-certifies-class-in-multi-billion-dollar-agent-commission-case\/\" target=\"_blank\" rel=\"noreferrer noopener\">class certification<\/a>. This ruling opened the door for HomeServices attorneys to file a motion to compel arbitration.<\/p>\n\n\n\n<p>According to HomeServices\u2019 motion to compel, \u201ccertain unnamed class member executed arbitration agreements to this motion in connection with the sale of their home. Each agreement delegates \u201cgateway\u201d or \u201cthreshold\u201d issues of arbitrability to the arbitrator through a specific delegation clause.<\/p>\n\n\n\n<p>\u201cThe unnamed class members who signed a form of listing agreement identified in Appendix A are now subject to the jurisdiction of the court as a result of the order certifying this action as a class action.\u201d<\/p>\n\n\n\n<p>In other words, due to the language used in HomeServices\u2019 listing agreements, every homeowner who sold their home through the brokerage between March 6, 2015 and December 31, 2020, is entitled to independently arbitrate their own case.<\/p>\n\n\n\n<p>\u201cHomeServices does a ton of business and it would be about 800,000 people they would have to arbitrate individually if this is allowed,\u201d <a href=\"https:\/\/preprod.housingwire.com\/tag\/steve-murray\/\" target=\"_blank\" rel=\"noreferrer noopener\">Steve Murray<\/a>, the president of <strong>RealTrends Consulting<\/strong>, said. \u201cIf any of the other large national firms has similar language in their agreements, that would throw into question the whole class action because not every listing agreement is the same.\u201d<\/p>\n\n\n\n<p>In 2020, HomeServices moved to strike the arbitrating unnamed class member from the class but because they were not subject to the court\u2019s jurisdiction, HomeServices was unable to file a motion to compel them to arbitration at that time. The court denied the motion to strike.<\/p>\n\n\n\n<p>\u201cWith this, HomeServices is telling the judge in Chicago that they ignored the fact that they certified this massive class, when for years the firm has been trying to tell them that each agreement between a homeowner and a brokerage is different,\u201d Murray said.<\/p>\n\n\n\n<p>According to a minute entry filed on Monday by Judge Wood, plaintiffs have until May 1 to file their response.<\/p>\n\n\n\n<p>&#8220;We support Home Services of America\u2019s effort to file a Motion to Compel Arbitration in the Moehrl case and are hopeful they prevail,&#8221; Mantill Williams, <a href=\"https:\/\/preprod.housingwire.com\/tag\/national-association-of-realtors\/\" target=\"_blank\" rel=\"noreferrer noopener\">NAR<\/a>&#8216;s vice president of communications, wrote in an email. <\/p>\n\n\n\n<p>Attorneys for the plaintiffs did not return a request for comment by the time of publication.<\/p>\n\n\n\n<p><em>This story was updated to include commentary from NAR.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cHomeServices does a ton of business and it would be about 800,000 people they would have to arbitrate individually if this is allowed,\u201d Steve Murray, the president of RealTrends Consulting, said.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-4207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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