The Real Estate Board of New York tried getting an antitrust lawsuit filed by Compass thrown out twice. The residential brokerage is the one now trying to put an end to the suit.
Compass filed a letter to the Southern District of New York District Court last week expressing a hope to settle its dispute with the state board organization out of court, Real Trends reported. In the letter, Compass referred to “procompetitive changes within the market regarding approaches to agent mobility and referral of listings” as rationale for the dismissal, as well as a withdrawal of certain complaints by other brokerages.
Compass asked the federal court to dismiss the lawsuit without prejudice, meaning it can sue again if it believes there is anti-competitive behavior, though the company said it has no plans to do so at the moment.
“Compass believes the allegations in its complaint, which survived a motion to dismiss and a motion for reconsideration, are well-supported and are being further supported as discovery progresses,” Compass wrote in its dismissal request.
Compass sued REBNY in March 2021, alleging the organization conspired with the Corcoran Group and Douglas Elliman to collectively modify and enforce the trade group’s rules in a way that harmed Compass; the two brokerages are not defendants.
The case specifically centers on the ability for agents to keep clients when switching brokerages.
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REBNY’s universal co-brokerage agreements bars agents from communicating with clients if they leave the firm where the exclusive listing agreement was signed. Under the rule, agents can’t contact previous clients after departing without either their former brokerage’s consent or a signed statement declaring the client wants to continue with the same agent.
REBNY eliminated the latter option, allegedly under pressure from Elliman and Corcoran. In January 2021, REBNY fined Compass $250,000 for “repeated violations” of the agreement.
Compass also claimed REBNY violated the Donnelly Act, the federal Sherman Antitrust Act and a claim for tortious interference with prospective economic advantage, meaning a third party unlawfully interfered with a business relationship. The latter was ultimately dismissed, but the other claims had been upheld.
Neither party commented publicly on Compass’ latest request.
— Holden Walter-Warner