Real Brokerage dismissed from Taylor case 

A class-action lawsuit against Zillow and a small group of co-defendants took a quick turn on Wednesday as the plaintiffs filed a motion to dismiss two of those defendants — The Real Brokerage and its affiliate The Frano Team — just one day after Real notched a win in the case.

What happened yesterday: On June 23, Judge James L. Robart approved a motion to compel arbitration between Real, The Frano Team and the plaintiffs. As part of his ruling, Robart also stayed the case until arbitration was completed, effectively pausing litigation for all defendants, including Zillow — the original and primary target of the lawsuit.

The motion to dismiss: In a one-page filing submitted to the court on June 24, attorneys for the plaintiffs indicated that their clients were voluntarily dismissing all claims against Real Broker and The Frano Team without prejudice, meaning they could still refile a complaint at a later date.

"This dismissal pertains to the aforementioned defendants only, and all other claims against all other defendants remain active," the filing noted.

What's next? The judge may lift the stay now that the parties seeking arbitration have been dropped from the case, but that ruling is not guaranteed. The court has yet to respond to Zillow's motion to dismiss the case altogether, which was filed in February. 

How we got here: A Portland homebuyer sued Zillow last year over its "Flex" agent referral program, claiming the portal "tricks" buyers into contacting a partner agent and uses its monopoly power to maintain "high and inflexible commissions." 

The case was later consolidated with a related lawsuit, and amended complaints included RESPA and RICO claims alleging that Zillow illegally steers buyers to its mortgage business. 

As the case progressed, three Real-affiliated brokerages/teams, The Real Brokerage and eXp Realty were added as defendants, though the addition of eXp has not yet been approved by the court. 

Real declined to comment on the decision. When reached for comment, Zillow pointed to the latest update on its web page dedicated to the case, which simply acknowledges the new development: "The plaintiffs have dropped their claims against two of Zillow's co-defendants after the court ordered them to arbitrate."

The law firm representing the plaintiffs did not immediately respond to Real Estate News' request for comment.

Clarification: Plaintiffs added eXp as a defendant in a second amended complaint filed on April 15. Due to filing errors, the plaintiffs filed a new motion the following week, asking the court to approve the addition. The court has not yet ruled on that motion.