It was a busy start to the week for HomeServices—at least in legal proceedings. On Monday, the U.S. Supreme Court denied a petition by the company without comment, essentially clearing the way for for HomeServices and two of its subsidiaries, BHH Affiliates and HSF Affiliates, to be tried as defendants in a class-action commission suit.
HomeServices argued that the trail should never happen because the plaintiffs signed arbitration agreements waiving their right to pursue class action litigation. Last Fall, a district court ruled that the real estate franchisor can’t enforce arbitration agreements signed by seller clients of its franchisees because the contracts the sellers signed were not directly with HomeServices.
But it wasn’t all bad news for HomeServices. Also on Monday, Judge Stephen R. Bough of the U.S. District Court for the Western District of Missouri declined to order HomeServices to pay damages awarded during the Sitzer-Burnett trial. For now.
HomeServices agued that it was too early for such a payout order because the court had not yet approved plaintiffs’ settlements with the other defendants. The Judge ruled that the plaintiffs “do not assert a danger or hardship other than the settlement monies will not be available to Plaintiffs for a few months more.”
Bough denied the plaintiffs’ motion without prejudice, meaning that the plaintiffs can resubmit their motion at a later date to have it reconsidered.
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