Zillow readies for battle with Compass 

Zillow has a bit of time to argue against a possible injunction over its ban of listings that are publicly marketed but not on the multiple listing service, according to new court documents filed this week in the home search site's legal battle with Compass.

In a status update filed in the U.S. District Court for the Southern District of New York one week after Compass sued Zillow, both parties agreed that Zillow will have until July 18 to file its opposition to a preliminary injunction that Compass filed on June 27. If a hearing is needed, Zillow and Compass proposed that it take place in September.

Compass' preliminary injunction motion asked the court to halt Zillow's listings ban over the course of the litigation. The ban on listings that are publicly marketed but not shared widely via the MLS, which Zillow announced in April, officially began on June 30.

The status report and a June 30 letter from Zillow's lead counsel gave the brokerage an opportunity to further clarify its opposition to the preliminary injunction and its request to begin an expedited discovery process. Zillow also intends to file a motion to dismiss the suit, court documents revealed.

Discovery arguments: In response to Compass' motion for expedited discovery, Zillow attorney Beau Buffier argued that the brokerage's decision to file its lawsuit three months after the new standards for listings were announced indicates there is no emergency.

Zillow's attorneys also called Compass' proposed discovery "overbroad" and "unduly burdensome," suggesting it would take several months to meet the requests.

Attorneys for Compass pushed back, arguing that "such a timeline is essential because Compass will continue to suffer irreparable harm from Defendants' actions as alleged in the Complaint until an injunction is in place."

Turning back progress? Buffier, an antitrust lawyer for Wilson Sonsini Goodrich & Rosati, also alleged that Compass' lawsuit aims to reverse the technological transformation that has allowed home listings to be available for free to anyone with internet access.

"Compass seeks to unravel this innovation and transparency for buyers and sellers in favor of Compass's own gain," Buffier wrote, later adding, "Critically, it is Compass that seeks to upend the status quo and turn back years of progress in promoting listings access and transparency."