March 18 (Reuters) - After winning a $1.7 billion
verdict last October over claims that they paid inflated real
estate commissions, Missouri-area home sellers on Monday asked
for a final judgment of more than $4.7 billion against
HomeServices, a unit of Warren Buffett's Berkshire Hathaway ( BRK/A )
that is the sole defendant left in the case.
In addition to seeking triple damages as allowed under
federal antitrust law, the filing in Kansas City, Missouri,
federal court takes into account $626.5 million in settlements
that the plaintiffs have reached with the other defendants in
the case.
In the most significant settlement, the Chicago-based
National Association of Realtors last week said it would pay
$418 million to resolve the class action and institute sweeping
reforms to industry commission practices.
Lawyers for HomeServices have asked U.S. District Judge
Stephen Bough to scrap the verdict, calling it "misguided and
excessive."
HomeServices on Monday said the plaintiffs' filing was
expected and that it will continue to contest the verdict.
Michael Ketchmark, a lead attorney for the Missouri
plaintiffs, said HomeServices "was the only defendant left
standing, and we hope that they change their ways and quit
defending a rule that the rest of the industry has abandoned."
The 2019 lawsuit claimed the real estate association and
major brokerages unlawfully coerced home sellers to pay a
commission to the buyer's agent in order to list their homes for
sale.
The commission, which is shared between the buyer's and
seller's agents, can run 5% to 6% of a home's sale price.
Under the terms of the proposed settlement with the National
Association of Realtors last week, the decades-old commission
requirement would be scrapped, leaving buyers and sellers to
negotiate their own agent fees.
Keller Williams, Re/Max and Anywhere have also settled with
the Missouri plaintiffs. The defendants did not admit to any
wrongdoing.
The case is Burnett v. The National Association of Realtors,
U.S. District Court for the Western District of Missouri, No.
4:19-cv-00332.
For plaintiffs: Michael Ketchmark of Ketchmark & McCreight;
Eric Dirks of Williams Dirks Dameron; and Brandon Boulware of
Boulware Law
For HomeServices: Robert MacGill of MacGill Law; Brian Fries
of Lathrop GPM; Jay Varnon of Foley & Lardner; Theodore Boutrous
Jr, Gregg Costa, Julian Kleinbrodt and Cynthia Richman of
Gibson, Dunn & Crutcher
Read more:
Home buying costs could fall in big US real estate group
settlement
Berkshire unit added to lawsuit over inflated real estate
commissions
Brokerages push to undo $1.8 bln verdict in real estate
commissions case