As plaintiffs rush to file suit against seemingly anyone in real estate business, at least three local organizations have been caught up in the wave of litigation after the ruling in the landmark Sitzer/Burnett class action. Specifically, Ebby Halliday Companies, Allie Beth Allman & Associates, and MetroTex Association of Realtors have been named in QJ Team et al. v. Texas Association of Realtors et al.
The lawsuit, which outlines similar arguments as stated in Burnett v. National Association of Realtors et al., targets the cooperative commission rule enacted by the NAR that has listing agents disclose the commission percentage or amount for a home on MLS. The suit seeks class-action status and was filed by home builder QJ Team LLC and magazine publisher Mark Hulme of Five Points Holding LLC.
“In the realm of Texas real estate lies a concealed conspiracy that has adversely impacted countless home buyers and sellers,” the suit alleges. “Plaintiffs, who have listed their homes on Multiple Listing Services (MLSs) in Texas, stand as the voice of those who have borne the brunt of the Defendants’ unlawful collaboration and anticompetitive practices.”
We reached out to Carolyn Rosson, the CEO of Ebby Halliday Companies, and Keith Conlon, President of Allie Beth Allman & Associates, for a statement. While Rosson declined to comment on pending litigation, Conlon has not responded to our request.
However, MetroTex has published a statement regarding the lawsuit, reinforcing its support of the contentious cooperative compensation rule.
On Monday, MetroTex Association of REALTORS® was named as a co-defendant in a lawsuit, QJ Team et al v Texas Association of REALTORS® al. Several REALTOR® associations and real estate brokerages in Texas have been named as co-defendants.
This is one of several copycat commissions-related lawsuits across the country that have been filed in the wake of a verdict against NAR and other corporate defendants in the case of Burnett v. NAR et al. As you probably know, NAR has indicated that it will appeal that outcome.
NAR’s position — which MetroTex supports — is that the practice of cooperative compensation makes efficient, transparent, and accessible marketplaces possible. Sellers can sell their home for more and have their home seen by more buyers while buyers have more choices of homes and can afford representation.
MetroTex stands by the value of the professional expertise that our members provide to your clients. Please continue to communicate to clients and consumers the value you bring to them when they are involved in real estate transactions.
Please also continue to clearly communicate your role in the transaction and all details about how you are compensated. As always, rely on guidance from your broker and your firm’s legal counsel. Remember, too, that several forms are available for use by members — including listing agreements and buyer/tenant representation agreements to help all parties clearly understand compensation related to a transaction.
Though there are aspects of this pending litigation that MetroTex is unable to discuss, rest assured that the association highly values transparency and will provide information and updates as we work toward a positive resolution for the association and its members.
According to sources
The suit, which seeks class action status, was brought by a Texas home builder, QJ Team LLC, and Five Points Holding, LLC, a holding company headed by business magazine publisher Mark Hulme in the U.S. District Court for the Eastern District of Texas. The Texas case is one of several new lawsuits filed in the wake of the Sitzer/Burnett verdict.
“In the realm of Texas real estate lies a concealed conspiracy that has adversely impacted countless home buyers and sellers,” the suit alleges. “Plaintiffs, who have listed their homes on Multiple Listing Services (MLSs) in Texas, stand as the voice of those who have borne the brunt of the Defendants’ unlawful collaboration and anticompetitive practices.”
