{"id":4604,"date":"2023-08-07T20:02:55","date_gmt":"2023-08-07T20:02:55","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/07\/judge-denies-zillows-motion-for-summary-judgement-in-the-rex-suit\/"},"modified":"2025-03-13T02:52:37","modified_gmt":"2025-03-13T02:52:37","slug":"judge-denies-zillows-motion-for-summary-judgement-in-the-rex-suit","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/07\/judge-denies-zillows-motion-for-summary-judgement-in-the-rex-suit\/","title":{"rendered":"Judge denies Zillow\u2019s motion for summary judgement in the REX suit"},"content":{"rendered":"\n

Things are continuing to heat up in Zillow Group\u2019s<\/a><\/strong> legal battle with discount brokerage REX Homes<\/strong>, as the September 18, 2023, trial date<\/a> looms ever closer.<\/p>\n\n\n\n

On Friday, Judge Thomas Zilly, the U.S. District Court judge in Seattle overseeing the lawsuit, issued a minute order denying in part and deferring in part Zillow\u2019s motion for summary judgement in the case.<\/p>\n\n\n\n

In mid-June, the three parties involved in the suit, Zillow, REX and the National Association of Realtors<\/a> <\/strong>(NAR), all filed motions for summary judgment<\/a> on at least some issues, if not the entire lawsuit.<\/p>\n\n\n\n

Three of REX\u2019s claims Zillow filed motions for summary judgement on were denied by Zilly, while Zillow\u2019s motion for summary judgement on REX\u2019s antitrust claim was deferred.<\/p>\n\n\n\n

Originally filed by REX in March 2021<\/a>, the lawsuit alleges that changes made to Zillow\u2019s website \u201cunfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.\u201d<\/p>\n\n\n\n

Two months prior, in January 2021<\/a>, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service<\/a> (MLS) practices.<\/p>\n\n\n\n

In January 2022, NAR filed a countersuit<\/a> claiming that REX uses false advertising and misleading claims to deceive consumers in violation of the Lanham Act, but the countersuit was dismissed<\/a> in late April 2022.<\/p>\n\n\n\n

In mid-May 2022, REX ceased its brokerage operations<\/a>. <\/p>\n\n\n\n

Since then, REX, Zillow and NAR have gone back and forth with filing various motions to compel<\/a> during the discovery phase of the trial.<\/p>\n\n\n\n

In his minute order filed on Friday, Zilly denied Zillow\u2019s motion for summary judgement on REX\u2019s Lanham Act claim, REX\u2019s claim for unfair and deceptive trade practices and REX\u2019s defamation claim.<\/p>\n\n\n\n

In regards to REX\u2019s Lanham Act<\/a> claim, Zillow contended that REX cannot prove that the allegedly false statements in question were made in \u201ccommercial advertising or promotion,\u201d and that REX cannot establish injury or damages. However, Zilly felt that Zillow had not demonstrated that REX is unable to satisfy the test for commercial advertising or promotion.<\/p>\n\n\n\n

In its motion for summary judgement, Zillow also claimed that REX\u2019s unfair or deceptive trade practices claim should fail if the Lanham Act claim fails. However, according to Zilly\u2019s order, REX has pleaded \u201cboth the \u201cunfair\u201d and \u201cdeceptive\u201d prongs\u201d of a consumer protection act (CPA) violation.<\/p>\n\n\n\n

\u201cZillow has not demonstrated that it is entitled to judgment as a matter of law with respect to REX\u2019s CPA claim,\u201d Zilly wrote.<\/p>\n\n\n\n

Finally, Zillow\u2019s motion for summary judgement on REX\u2019s defamation claim also was also denied. In the motion, Zillow argued that REX\u2019s defamation claim fails as a matter of law as REX cannot prove damages, however, during oral arguments REX noted that it only seeks nominal damages. Zilly denied the motion as he felt that given the record on this claim, \u201cthe Court cannot determine as a matter of law whether REX can prove the actual malice necessary to be entitled to nominal or presumed damages.\u201d<\/p>\n\n\n\n

NAR and REX also filed motions for summary judgement on the case in June, but rulings have not yet been issued. <\/p>\n\n\n\n

\u201cWe continue to maintain the claims made in REX\u2019s lawsuit are without merit. REX chose to use Zillow\u2019s services to advertise their for-sale properties on Zillow \u2013 for free. Zillow has consistently advocated for outdated rules to be changed to allow the broader display of all listings on all platforms, including For Sale By Owner and listings from other companies like REX.  Zillow\u2019s business decisions were squarely focused on improving the data on our site and the experience for customers,\u201d Will Lemke, Zillow\u2019s corporate communications manager, wrote in an email. \u201cWe hope the court sees this suit for what it is: REX seized upon Zillow\u2019s website design change to hide its own business failings.\u201d<\/p>\n\n\n\n

NAR also believes its side will succeed in the lawsuit.<\/p>\n\n\n\n

“While NAR was not a party in Zillow\u2019s filing, we still believe the law is on our side and we remain confident we will ultimately prevail,” Mantill Williams, NAR’s vice president of communications, wrote in an email. “NAR guidelines and local broker marketplaces create highly competitive markets, empower small businesses and ensure equitable home ownership opportunities, superior customer service and greater cost options for all buyers and sellers”<\/p>\n\n\n\n

Lawyers for REX did not offer comment on the ruling at this time. <\/p>\n","protected":false},"excerpt":{"rendered":"

Things are continuing to heat up in Zillow Group\u2019s legal battle with discount brokerage REX Homes, as the Sept. 18 trial date looms ever closer.<\/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-4604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nJudge denies Zillow\u2019s motion for summary judgement in the REX suit - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"A U.S. District Court judge in Seattle denied most of Zillow's motions for summary judgement in the REX lawsuit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/07\/judge-denies-zillows-motion-for-summary-judgement-in-the-rex-suit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Judge denies Zillow\u2019s motion for summary judgement in the REX suit\" \/>\n<meta property=\"og:description\" content=\"A U.S. District Court judge in Seattle denied most of Zillow's motions for summary judgement in the REX lawsuit.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2023\/08\/07\/judge-denies-zillows-motion-for-summary-judgement-in-the-rex-suit\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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