Judge denies Zillow’s request for MRED-Compass calls, emails
The court said the portal’s request for the allegedly “conspiratorial communications” was “unduly burdensome," but agreed to extend Zillow's TRO against MRED.
A judge in Northern Illinois has shot down Zillow's request to receive copies of certain communications between Midwest Real Estate Data (MRED) and Compass.
The home search giant, which sued the MLS and brokerage in May, had asked the court for documents related to correspondence about any MRED rule changes, Zillow and its listing access standards, or the portal's compliance with MRED's rules.
The portal did score one notable win, however, with the judge granting an extension of its temporary restraining order against MRED.
Continued access to MRED feeds: Zillow filed a motion for an extension of the temporary restraining order against the Chicago-area MLS, which prevents MRED from cutting Zillow's access to its listing feed. Judge Tharp granted that motion, which was unopposed.
The judge said the restraining order will remain in effect either until the court rules on Zillow's motion for a preliminary injunction or until the court grants MRED's motion to compel for arbitration (whichever occurs first).
Zillow said the extension of the restraining order was "great news," particularly for buyers and sellers who will continue to have full access to Chicagoland's market through the Zillow portal for the time being.
"Notably, MRED did not oppose our motion to extend the order, and we are pleased they've agreed not to cut the listing feed again in the meantime," a Zillow spokesperson said in an email. "Zillow believes buyers, sellers and agents are best served by an open, transparent marketplace where listings are broadly accessible, and we will continue advocating for that principle."
'Conspiratorial communications': Although it will be able to maintain its listing feed, Zillow will not get access to certain materials it requested. The portal alleged that MRED and Compass refused to accommodate its "initial interrogatories" — i.e., requests for information — by a June 5 deadline. In their response to Zillow's motion, Compass and MRED said "the burden of doing so far outweighs any benefit Zillow could possibly derive," even though the portal says it suggested multiple ways to make the request easier by narrowing the scope of the interrogatories.
Zillow argued in a June 3 legal filing that the information it was seeking regarding MRED and Compass' allegedly "conspiratorial communications" was critical and couldn't be acquired through standard document production in the case.
What Zillow wanted: The portal requested records of all discussions, messages and phone calls involving MRED, its board members and/or member brokerages during the period when MRED rule changes and Zillow's data feed agreements, listing access standards and compliance were under discussion.
Later, Zillow offered to limit the requested information to oral communications only, and only those most relevant to Zillow's conspiracy claims.
The portal also asked for a list of every MRED member brokerage, agency or agent the MLS had identified in the last five years for violating any MRED or MLS Grid rule "relating to exclusion of listings from IDX or VOW feeds," and the date, location and listing address of each violation.
Zillow had previously requested a list of Compass transactions that took place on MRED, including commissions, the use of both MRED and Compass' private listing platforms and any agents and brokerage firms involved in subsequent sales. Compass did agree to provide those details.
'Unduly burdensome': Judge John J. Tharp, Jr. agreed with MRED and Compass in a June 4 filing denying Zillow's motion to compel responses.
The judge said the requested responses were "unduly burdensome" given the case's expedited discovery schedule, especially since written responses would be time-consuming to produce and might not provide much information beyond what would be made available through the case's proceedings.
Judge Tharp added that Zillow would also have an opportunity during depositions to ask about the requested oral communications.
How we got here: Zillow sued MRED and Compass in mid-May alleging that the two companies were conspiring to conceal listings through their partnership and monopolistic power in the Chicagoland market.
MRED also threatened to cut off Zillow's data feed, and succeeded in doing so for a couple days, before Judge Tharp ordered MRED to reinstate the data feed.
Now, Zillow is facing a similar threat from Realtracs in Tennessee, which also recently said it would cut off the portal's data feed if it does not come into compliance with the MLS's updated rules, which specify that all listings "that match a consumer's search criteria must be returned by Vendor's consumer search results," including those previously marketed to a select group.
The portal's current license with Realtracs expires on June 8.
Compass declined to comment on the ruling. Real Estate News has also reached out to MRED for comment.