A number of real estate giants, including Berkshire Hathaway Energy and Hanna Holdings, are standing firm against the allegations in the Gibson commission lawsuit.
Real Estate Firms Respond to Allegations
While several brokerages like Side and JPAR have chosen to settle similar commission-related lawsuits recently, many others are opting to fight back.
On Monday, a coalition of notable real estate firms—including Berkshire Hathaway Energy (BHE), the parent of HomeServices of America, along with Windermere Real Estate, Hanna Holdings, EXIT Realty, William Raveis, Crye-Leike, and William L. Lyon & Associates—filed formal responses to the Gibson case, firmly denying the allegations brought by the plaintiffs.
Denials and Defenses
These responses came on the heels of a Missouri jury finding certain real estate professionals liable for conspiracy related to inflated agent commissions.
The Gibson lawsuit, which seeks class-action status, aims to cover “all individuals who listed properties on a Multiple Listing Service in the U.S. through an agent or broker affiliated with” the named firms and who paid a buyer broker commission from October 31, 2019, to the present.
In its defense, BHE, part of Warren Buffett’s Berkshire Hathaway, denied any violations of federal antitrust laws and asserted that it does not engage in anti-competitive practices.
Other defendants echoed these denials but offered varying defenses.
Many argued that the plaintiffs lacked the legal standing to sue and that class members must arbitrate their claims based on individual contracts.
They also contended that the plaintiffs haven’t demonstrated any damages caused by the defendants and cited the statute of limitations, suggesting the plaintiffs had consented to the behaviors in question, which they claimed were pro-competitive.
Additional Defense Strategies
Hanna Holdings and Crye-Leike added another layer to their defense, arguing that a settlement from a National Association of Realtors (NAR) commission lawsuit should block these claims.
Crye-Leike asserted it qualifies as a “released party” in that settlement, while Hanna Holdings maintained that the Gibson claims were already waived in the agreement.
It’s worth noting that Hanna Holdings has previously been dismissed from another commission lawsuit in Pennsylvania.
Source: Housingwire