Forward of a last Nov. 26 approval listening to on NAR’s proposed class-action settlement, DOJ legal professionals narrowed in on a provision requiring written agreements between patrons and brokers earlier than excursions.
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The Division of Justice on Sunday filed a five-page assertion of curiosity within the Sitzer | Burnett case, two days forward of a last listening to on the Nationwide Affiliation of Realtors’ proposed fee settlement.
Attorneys for the DOJ took no place on whether or not Choose Stephen R. Bough ought to approve the settlement Tuesday, however balked at guidelines requiring patrons and brokers to enter into written agreements earlier than touring properties — one of many key follow modifications that took impact in August as a part of the antitrust settlement.
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Moreover, attorneys warned that follow modifications unveiled in March wouldn’t forestall additional authorized challenges and added that Bough ought to make clear that the settlements most gamers within the trade agreed to aren’t protections towards future enforcement.
“While the Court may ultimately find that the proposed settlement achieves important concessions in the interests of the private actors in this litigation and satisfies [settlement rules], such determination does not mean that the proposed settlement effectively prevents or restrains ongoing antitrust violations or remedies past violations, or itself contemplates practices that fully comply with the antitrust laws,” the attorneys wrote.
NAR and the brokerages, franchisors and MLSs that opted into the settlement or negotiated their very own might search to make use of these agreements as a “shield against future enforcement action” by the DOJ, the attorneys added.
“For this reason, the United States respectfully requests that if the Court approves the settlement, it should clarify that such approval does not address whether the proposed settlement prevents and restrains current antitrust violations, remedies past violations, or contains revised policies and practices that comply with the antitrust laws,” the attorneys wrote.
Particularly, the DOJ took purpose on the provision that requires patrons and brokers to enter into written agreements earlier than touring a house, which they mentioned “bears a close resemblance to prior restrictions among competitors that courts have found to violate the antitrust laws” in different instances.
“Buyer brokers under the proposed rule may not show a house, even a no-obligation showing, without first obtaining a written agreement,” the attorneys wrote. “Thus, the concerns remain that the broker agreement rule may limit how brokers compete, and there is no record available in the current posture addressing this concern.”
The attorneys wrote that the priority could possibly be addressed in a number of methods. The primary is to eradicate the supply.
Or they might “disclaim that the settlement creates any immunity or defense under the antitrust laws.”
“Alternatively, the Court could clarify that approval of the settlement affords no immunity or defense for the buyer-agreement provision,” they wrote.
“Because the United States did not participate in either this litigation or the proposed settlement, the proposed settlement does not limit the United States’ ability to enforce the antitrust laws, including to seek greater relief for the conduct at issue here,” the attorneys wrote.
Even when Bough approves the settlement, the DOJ attorneys made clear that wasn’t the top of its deal with the trade.
“The United States continues to scrutinize policies and practices in the residential real-estate industry that may stifle competition,” they wrote. “It is a matter of public record that the United States has an open investigation into these practices.”
Electronic mail Taylor Anderson
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