rear Hanna HoldingsThe parent company of Howard Hanna Real Estate Services If the Davis Commission filed a motion to dismiss the case, the plaintiffs could file an answer or amended complaint, and on Monday the court got its answer when the plaintiffs’ lawyers filed their first amended complaint.
The case remains National Association of Realtors The participation rule required listing brokers to offer buyer brokers a lump sum compensation in order to list a property on an MLS affiliated with a real estate association. Plaintiffs allege that the rule led to inflated commissions and increased the overall cost of the transaction.
“The conspiracy has substantially lessened competition in the market for buyer agent services, to the detriment of American homebuyers,” the complaint states. “Specifically, the conspiracy enables brokers to inflate, fix and maintain buyer agent compensation at artificially high levels that would not exist in a competitive market, causing homebuyers to pay higher prices. The conspiracy also enables brokers to ‘steer’ homebuyers away from homes that offer lower commissions.”
The initial complaint, filed in late May, listed only one plaintiff as Scott Davis, a North Carolina resident who used a real estate agent to purchase a home in Greensboro in 2022. Allen Tate Real Estate LLCis a subsidiary of Hanna Holdings Inc. But the amended complaint lists a robust list of 25 plaintiffs.
In addition to Davis, the plaintiffs currently named in the lawsuit include Neal Adams, Maia Batton, Theodore Visvicos, Aaron Bolton, Jason Boomsma, Thomas Brown, Sabrina Clark, Steven Ewald, Ryan Eisner, John Garrett, Brennon Groves, Darin Hendry, Anna James, Do Young Eileen Kim, James Lutz, Jordan Kullman, James Malis, Daniel Parsons, Joshua Patt, John Sanner, Robert Sayles, Ben Shadle, Brent Strine, Kristin Van Walkon and Shelley Wall.
The additional plaintiffs purchased homes in various states, including North Carolina, Maine, Tennessee, Florida, Wisconsin, Iowa, Illinois, West Virginia, Maryland, Missouri, Colorado, Minnesota, Nevada, New Mexico, Arizona, Virginia, South Carolina, Washington D.C., Oregon, Connecticut and New York.
Button, Visvicos, Bolton, James, Kim, Malice and Parsons are plaintiffs in the Button lawsuit, and Latz is a plaintiff in a separate Home Buying Committee lawsuit. Home Services of America and Douglas Elliman.
According to information in the amended complaint, Davis is the only plaintiff who used a buyer’s agent affiliated with Hanna Holdings, the sole defendant in the lawsuit.
Davis and all the other plaintiffs Coleen Tillerythe law firm representing the Baton plaintiffs; and Lowi Dannenberg.
In addition to Hanna Holdings, the Davis lawsuit also names: Anywhere Real Estate, RE/MAX Holdings, Keller Williams Real EstateHomeServices of America, compass, eXp World Holdings, Redfin, Weichert Real Estate, United Real Estate Group Douglas Elliman was also named as a co-conspirator.
The lawsuit seeks class action status for a nationwide class, defined as those who purchased residential property listed on the Realtor Affiliated MLS between December 1, 1996 and the present.
In addition to a jury trial, the plaintiffs are seeking damages and an injunction “permanently enjoining and restraining defendants from enacting any future rules, policies or practices that are the same or similar to those at issue in this lawsuit.”
