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Home sellers say HomeServices owes $4.7 bln in real estate commissions case
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Home sellers say HomeServices owes $4.7 bln in real estate commissions case
Mar 18, 2024 3:50 PM

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

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