Defendant MLS PIN and plaintiffs Jennifer Nosarek, Randy Hershorn, and Tracy Hershorn asked a district court judge for permission to respond to a statement of interest filed by the Department of Justice in the case.
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Plaintiffs and multiple listing service defendants in a major Antitrust Commission case are working together against a common enemy: the U.S. Department of Justice.
On Wednesday, plaintiffs Jennifer Nosarek, Randy Hershorn, and Tracy Hershorn and defendant MLS Real Estate Information Network (MLS PIN) filed a lawsuit against the U.S. District Court for the District of Massachusetts, which filed a lawsuit against the Department of Justice on February 1. It sought permission to respond to an expression of interest submitted in the lawsuit. 15.
In its filing, federal regulators reject the rule changes in the proposed settlement between the plaintiffs and MLS PIN and instead request “an injunction prohibiting sellers from making any commission offers to buyer brokers.” , thereby promoting competition and innovation among buyers. This is because buyers are given the power to negotiate directly with their brokers.
Plaintiffs and MLS PIN previously went back to the drawing board and reworked the settlement after the Justice Department expressed concerns about the deal, but decided to fight instead after hearing specific objections from antitrust enforcement officials. It seems so.
“Plaintiffs and MLS PIN dispute the factual and legal assertions made in the Department of Justice Statement of Interest,” the attorneys said in a statement. Application to the Community Court.
“Accordingly, Plaintiffs and MLS PIN respectfully request the opportunity to file a separate response to the Department of Justice’s Expression of Interest by March 28, 2024.”
March 28 is the day for oral argument before the Multidistrict Litigation (MDL) Committee. On Dec. 27, attorneys for Gibson and other plaintiffs in similar cases, called Ampa, filed a federal lawsuit alleging similar claims across the country, including this Nosarek case, with the U.S. Judicial Committee for Multidistrict Litigation. He asked the district court to consolidate the case. Western District of Missouri. The court held its first trial in a similar case known as Sitzer. The Barnett case ended with a multi-billion dollar judgment for the home sale plaintiffs.
Nosarek’s judge, Judge Patti B. Sallis, suspended the case on February 14 pending a ruling from the MDL committee, but temporarily suspended the case the next day to allow the Justice Department to file a statement of interest. The lawsuit was reopened.
“Plaintiffs and MLS PIN do not expect the MDL Panel to issue a decision on or by that date.” [March 28]”And please understand that this stay of litigation, including the MLS PIN Settlement and all related proceedings, will remain in effect for at least several more weeks until the MDL Committee does so,” the joint court filing states. is stated.
“However, Plaintiffs and MLS PIN filed a petition on March 28 to allow the Department of Justice, the parties, and this Court to move forward with the case if the MDL Panel issues a decision and the stay in this Court is subsequently lifted. We suggest that you submit your response by “promptly.” ”
Like the Federal Commission’s Mohr v. Sitzer case | Barnett, Nosarek seeks class action status, arguing that splitting fees between listing and buyer brokers inflates costs for sellers. , alleging that it was a conspiracy to restrain trade and a violation of the Sherman Antitrust Act.
But Nosarek differs from many other cases in important ways. The National Association of Realtors is not named as a defendant, but MLS PIN is. MLS employs his 60 full-time staff and boasts approximately 46,000 subscribers in six New England states and New York.
The Nosarek case, like a growing number of antitrust cases across the country, challenges rules that require listing brokers to offer comprehensive, unilateral indemnification to the buying broker in order to apply for listing on the MLS. . Most of the lawsuit targets his NAR version of the rule, known as the Cooperation and Compensation Rule or Participation Rule. This rule applies to all real estate agent-related MLSs nationwide and has attracted the attention of the Department of Justice.
It remains to be seen whether the plaintiffs and MLS PIN will specifically oppose the Justice Department committee’s call for separation. A week after the Justice Department’s filing, the NAR breaks its silence on the Justice Department’s proposal, saying it would make it more expensive for homebuyers to obtain competent representation and reduce access to fair housing for consumers. He said it would cause damage.
Read the joint court filing.
Email Andrea V. Brambilla.