A major commission suit was just filed in in the U.S. District Court for the Central District of California, naming more than 35 defendants ranging from the National Association of Realtors to the California Regional MLS. Two California sellers filed the lawsuit alleging the defendants violated federal and state antitrust laws by conspiring to inflate broker commissions.
The plaintiffs are seeking class-action status on behalf of anyone in the counties of L.A., Fresno, Merced, Madera and Mariposa who used any defendant or their affiliates as the listing broker in the sale of a property and who subsequently paid a commission to the buyer broker through the sale, from January 17, 2020 through the present.
Defendants include the California Association of Realtors, Greater Los Angeles Realtors, eXp World Holdings, Compass and First Team Real Estate.
The complaint alleges the defendants violated the federal Sherman Antitrust Act, the California Cartwright Act and the California Unfair Competition Law—a similar set up to a number of commission lawsuits currently filed in a number of other states. The complaint requests a jury trial and seeks awards for damages and/or restitution, costs of the suit. Additionally, the suit seeks a permanent injunction banning the defendants “from (1) requiring that sellers pay the buyer broker, (2) continuing to restrict competition among buyer brokers and seller brokers, and (3) engaging in any conduct determined to be unlawful.”
At the same time that this California complaint was filed, a Missouri judge denied a joint motion to stay the Gibson commission case, making way for the $200 billion federal lawsuit to move forward. NAR and a number of major brokerages had sought to have the case suspended.