Real estate

A slew of plaintiffs added to the amended Davis Commission for Home Buyers

After Hanna Holdingsthe parent company of Howard Hanna Real Estate Services, had filed a motion to dismiss, the Davis Committee prosecutor could have filed a response brief or an amended complaint. On Monday, the court received a response and plaintiff’s counsel filed its first amended complaint.

The suit still targets the National Association of Real Estate Agents Participation Rule, which required listing agents to make a blanket offer of compensation to buyer agents to list a property on a broker association-affiliated MLS. The plaintiffs allege that as a result of this rule, they paid higher commission rates, which increased the overall cost of their transaction.

“The conspiracy significantly reduced competition in the market for buyer agent services to the detriment of American homebuyers,” the lawsuit said. “Specifically, the conspiracy allows real estate agents to inflate, set, and maintain buyer agent fees at an artificially high level that would not exist in a competitive market, which in turn causes homebuyers to pay higher have to pay prices. The conspiracy also allows real estate agents to steer homebuyers away from homes with lower commissions.”

The first complaint, filed in late May, listed only Scott Davis as a plaintiff. Davis is a North Carolina resident who purchased a home in Greensboro in 2022 through a buyer’s agent from Allen Tate Real Estate LLCa subsidiary of Hanna Holdings. But the amended complaint contains a robust list of 25 plaintiffs.

In addition to Davis, the plaintiffs now consist of Niall Adams, Mya Batton, Theodore Bisbicos, Aaron Bolton, Jason Boomsma, Thomas Braun, Sabrina Clark, Steven Ewald, Ryan Eisner, John Garrett, Brennon Groves, Darin Hendry, Anna James, Do Yeon Irene Kim, James Lutz, Jordan Kullmann, James Mullis, Daniel Parsons, Joshua Putt, John Sannar, Robert Sayles, Ben Shadle, Brent Strine, Christine Van Woerkon and Sherrie Wohl.

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The additional plaintiffs purchased homes in several states, including North Carolina, Maine, Tennessee, Florida, Wisconsin, Iowa, Illinois, West Virginia, Maryland, Missouri, Colorado, Minnesota, Nevada, New Mexico, Arizona, Virginia, South Carolina, Washington, DC, Oregon, Connecticut and New York.

Batton, Bisbicos, Bolton, James, Kim, Mullis and Parsons are plaintiffs in the two Batton lawsuits, while Lutz is the lead plaintiff in another lawsuit against the Home Buyers Commission. HomeServices of America And Douglas Elliman.

According to information in the amended complaint, Davis is the only plaintiff to use a buyer’s agent affiliated with Hanna Holdings, the sole defendant in the lawsuit.

Davis, as well as all additional plaintiffs, are represented by Korein Tillerythe law firm representing Batton plaintiffs, and Lowey Dannenberg.

In addition to Hanna Holdings, the Davis cases are also listed Real estate everywhere, RE/MAX Companies, Keller Williams Real EstateHomeServices of America, Compass, eXp World Holdings, Redfin, Weichert Real Estate Agents, United Real Estate Group and Douglas Elliman as co-conspirators.

The lawsuit seeks class action status for a nationwide group defined as individuals who purchased residential real estate listed on a broker-affiliated MLS between December 1, 1996 and the present.

The plaintiff is seeking a jury trial, as well as damages and an injunction that “permanently enjoins and restrains Defendant from adopting in the future the same or similar rules, policies, or practices as those challenged in this action.”

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