Compass v. NWMLS update: Request to pause discovery denied
A Washington state judge issues a new ruling in Compass’ case against Northwest MLS; in Missouri, Howard Hanna’s settlement in the Gibson case moves forward.
A Washington state judge has ruled that the antitrust case Compass filed against Northwest Multiple Listing Service back in April will proceed with its discovery phase. Meanwhile, a settlement agreement reached earlier this year in the Gibson case between home sellers and Howard Hanna in Missouri has taken another step forward.
Discovery a go in Compass v. NWMLS: U.S. District Court Judge Jamal Whitehead denied a motion from NWMLS to pause discovery pending a decision on its separate motion to dismiss the case.
In his ruling, Whitehead said he is open to "a more tailored motion" to address concerns about "overly broad and unduly burdensome discovery requests," but a blanket stay of discovery would cause "unnecessarily" litigation delays.
"While NWMLS's motion to dismiss would be dispositive if successful, NWMLS has not argued that it is likely to succeed on the motion," Whitehead wrote.
Compass alleged in its lawsuit that NWMLS has monopolistic and anticompetitive business practices. The brokerage further alleged that the association's rules against pre-marketing and office exclusives obstruct seller choice and prevent Compass from implementing its 3-phased marketing strategy.
NWMLS contends that its policies are designed to "provide market transparency for home sellers, buyers as well as listing brokers and brokers representing buyers."
Howard Hanna settlement moves forward: Howard Hanna and the home sellers in the Gibson commissions case said in a joint status report that they have formally executed a settlement agreement. The agreement is to be presented to the court for preliminary approval in the next 60 days.
The two parties reached an agreement in May but appeared to encounter delays in the three months since.
Details regarding the settlement agreement have not yet been revealed. Monetary damages and any policy changes on commissions are expected to be specified in the preliminary approval motion.