What’s new and what’s next

Home sales may be slowing, but the real estate season is about to pick up again.

This Thursday – on the one-year anniversary of the industry-shocking Sitzer/Burnett verdict – Judge Stephen Bough of the U.S. District Court of Missouri will hear final arguments on the settlements reached by nine defendants in the Gibson/Umpa Commission case: Compass, The Real Brokerage, Realty ONE Group, Douglas Elliman, @properties, Redfin, Engel & Volkers, HomeSmart and United Real Estate.

In total, the nine brokerage firms have agreed to pay just over $110 million, although that amount could grow if contingent payments are added. Compass’s $57.5 million payout accounted for more than half of the settlement fund in the case.

A possible complication? Although settlement hearings are largely procedural, several interested parties hope to delay final approval. In other cases, at least three objections were filed by plaintiffs, and several more came from individual home sellers. At issue are monetary damages, which some objectors say are too low, and the potential impact of the settlements on lawsuits brought by buyers, such as the Batton cases.

Judge Bough ordered the objectors and their attorneys to attend the final hearing — a requirement that has met with some resistance. Some opponents have said it would be difficult to attend because of scheduling conflicts, and at least one questioned why they should have to spend money on airfare and lodging in Kansas City, which will cost far more than any portion of the settlement whatever they hope to receive.

Other settlements: The final hearings for the largest settlements to date – those reached by the National Association of Realtors and HomeServices of America – are scheduled for Tuesday, November 26. Combined, the two deals total $668 million.

The RE/MAX, Anywhere Real Estate and Keller Williams settlements were finally approved in May, with the three brokerage firms paying a total of $208.5 million, but they are being appealed.

Although settlements have been reached in several cases, they all stem from the Sitzer/Burnett verdict, in which jurors decided that NAR and the brokerage defendants participated in anticompetitive practices to keep commissions high through a system in which sellers compensate buyers agents pay.

Speaking of objections… eXp’s $34 million settlement, reached with plaintiffs in the Hooper case in Georgia, has also come under fire. An objection was filed on October 22 by plaintiffs in the Gibson case, who said eXp used a “reverse auction” to get the best deal, and that the Gibson plaintiffs should be the ones to negotiate the settlement.

Attorneys for the Gibson plaintiffs say they were involved in settlement negotiations with eXp but were rebuffed, leading eXp to reach a deal with the Hooper plaintiffs.

“Based on publicly available information about eXp’s financial condition, the Hooper case settlement does not provide adequate and fair value for the class given eXp’s financial resources, which are equal to or greater than those of Anywhere, RE /MAX, Keller Williams and Compass – defendants in Burnett and Gibson who all agreed to significantly larger settlements than eXp,” the filing said.

Prior to the Sitzer/Burnett verdict, Anywhere settled for $82.5 million and RE/MAX settled for $55 million. Keller Williams later settled for $70 million.

According to the filing, Hooper’s attorneys did not consider eXp’s financials when negotiating a settlement.

“That is a stunning admission and explains why, at least in part, eXp secured an improper sweetheart deal that was not fair or reasonable to the class,” the filing said.