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Michigan Post > Blog > Real Estate > Appeals courtroom will let DOJ communicate in REX case
Real Estate

Appeals courtroom will let DOJ communicate in REX case

By Editorial Board Published February 4, 2025 5 Min Read
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Appeals courtroom will let DOJ communicate in REX case

Lawyer Alice A. Wang of the DOJ’s Antitrust Division will seem at oral arguments within the U.S. Courtroom of Appeals for the Ninth Circuit on Feb. 13.

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The U.S. Division of Justice’s multi-front struggle in opposition to sure Nationwide Affiliation of Realtors guidelines is formally heading to an appeals courtroom this month.

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On Jan. 31, the U.S. Courtroom of Appeals for the Ninth Circuit granted the antitrust enforcer’s Jan. 8 request to talk at oral arguments in an attraction filed by now-defunct low cost brokerage REX, also referred to as Actual Property Alternate, in litigation in opposition to NAR and actual property big Zillow.

Oral arguments within the case are scheduled for Feb. 13. The courtroom has allotted 20 minutes to every aspect and the DOJ could have an extra 5 minutes to talk on high of that point, in accordance with the courtroom’s Friday order.

On Feb. 3, Alice A. Wang, counsel to the assistant legal professional common on the DOJ’s Antitrust Division, acknowledged the order and stated she would seem on the listening to, which can happen at a courthouse in Honolulu.

Wang wrote the Jan. 8 movement requesting the time to talk. She additionally wrote an amicus temporary the DOJ beforehand submitted within the case in June in assist of neither occasion, with out taking a place on the case’s final end result.

“Instead, the United States explained that, although the district court appeared to have a limited view of when optional association rules can represent concerted action under Section 1 of the Sherman Act, there are additional ways that optional rules constitute concerted action that the court did not appear to consider,” Wang wrote within the movement.

“The United States thus urged this Court to vacate and remand the case for the district court to apply the proper legal framework to the evidence in this case.”

The movement famous that not one of the events oppose the DOJ’s request for 5 minutes, however Zillow and NAR thought the 5 minutes ought to come out of REX’s time to talk whereas REX requested the courtroom so as to add on the DOJ’s time with out affecting the already-allotted 20 minutes per aspect. The courtroom agreed with REX.

The DOJ’s June amicus temporary took intention at NAR’s optionally available “no-commingling” rule, which, when adopted by an MLS, requires brokerage web sites to separate shows of MLS listings from non-MLS listings. As a result of REX didn’t use MLSs for many of its existence, REX’s swimsuit alleges that this led to restricted visibility of REX’s listings on Zillow and the rule is subsequently anti-competitive.

REX’s antitrust claims in opposition to NAR and Zillow had been thrown out earlier than trial, REX misplaced on its remaining claims at trial, after which the brokerage was subsequently denied a request for a retrial. REX is interesting that latter ruling.

Based on the DOJ’s amicus temporary, the “no-commingling” rule’s “optional nature” doesn’t forestall it from probably being anti-competitive, and the courtroom choice denying a retrial didn’t absolutely consider that associations like NAR could have circumvented antitrust oversight by enacting such optionally available guidelines.

The DOJ additional argued that Supreme Courtroom precedent has proven optionally available guidelines could contain “concerted action” that may make these guidelines “mandatory in practice” and that the courtroom ought to vacate the district courtroom’s denial of a retrial in order that the decrease courtroom absolutely considers REX’s argument that the optionally available rule nonetheless invited NAR, MLSs and Zillow “to participate in a common plan.”

Whether or not the appeals courtroom will agree stays to be seen.

E mail Andrea V. Brambila.

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