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Consumer attorneys, engaged in a legal battle against the commissions paid by home sellers to buyer’s agents, are pushing for the consolidation of multiple cases in Missouri. This move comes after a significant victory in October when a Missouri jury awarded $1.8 billion to plaintiffs who sued major brokerages and the National Association of Realtors, the industry’s leading trade group.
Call for Consolidation
On Wednesday, lawyers representing home sellers in two cases appealed to the U.S. Judicial Panel on Multidistrict Litigation to consolidate at least nine lawsuits. Their request aims to centralize these cases in the Kansas City federal court, under the jurisdiction of U.S. District Judge Stephen Bough. Bough, based in the Western District of Missouri, previously oversaw the litigation and trial that sparked a wave of similar claims across the nation.
Allegations and Defendants
At their core, the lawsuits allege that sellers paid artificially inflated commissions to buyer’s brokers, violating U.S. antitrust laws. Some cases include significant players, including the National Association of Realtors and prominent U.S. real estate brokers such as Keller Williams and HomeServices of America.
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Multidistrict Litigation Process
The U.S. Judicial Panel on Multidistrict Litigation routinely evaluates requests to centralize similar lawsuits. Consolidation allows a single judge, in this case, Judge Stephen Bough, to address common legal issues, preventing inconsistent opinions from different federal courts. This process aims to streamline the legal proceedings and minimize the risk of conflicting decisions.
Denials and Appeals
Based in Chicago, the National Association of Realtors and the accused brokerages have consistently denied any conspiracy to inflate commissions. They plan to appeal the outcome of the Missouri trial. However, two new lawsuits have emerged in the Kansas City federal court since the verdict, both framed as nationwide class actions. Large plaintiff firms such as Cohen Milstein Sellers & Toll, Hagens Berman Sobol Shapiro, and Susman Godfrey filed the latest class action on Wednesday.
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Nationwide Legal Landscape
Beyond Missouri, plaintiffs have initiated legal action in federal courts across the United States, including California, Texas, New York, and Pennsylvania. These lawsuits target not only real estate franchisers and brokerages but also regional real estate trade associations, and home-listing services brokers use.
The Argument for Kansas City
In their filing on Wednesday, attorneys from the two Kansas City cases emphasized that Judge Bough’s familiarity with the legal issues “militates strongly in favor of transfer to his courtroom.” This underscores the importance of a venue where the presiding judge is well-acquainted with the complexities of the case.
In the ongoing battle between home sellers and the real estate industry, the consolidation of lawsuits and the choice of the appropriate venue will significantly influence the trajectory of this high-stakes legal dispute.
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