Batton judge grants final approval of KW, REMAX settlements 

A class-action commissions lawsuit that has dragged on for more than five years will finally come to a close for Keller Williams Realty and REMAX.

On August 4, U.S. District Judge LaShonda A. Hunt filed orders finalizing the Batton plaintiffs' settlements with the two real estate companies, releasing them from further related claims.

Nearly $30 million added to settlement fund: Keller Williams announced it had reached a $20 million deal with the homebuyer plaintiffs in February. It was the first brokerage defendant to settle in the case known as Batton 1, and at the time, President and CEO Chris Czarenecki said the settlement would "allow us all to turn our attention back to what we do best" — namely, providing value to the market.

A few weeks later, REMAX settled for $8.5 million, with a company spokesperson saying the move brought "certainty to what has been a long and uncertain situation."

Judge Hunt found both settlements to be fair, reasonable and adequate, and with the agreements, claims against the two firms have been dismissed with prejudice, meaning plaintiffs cannot bring similar claims against the companies in the future.

Attorney fees, plaintiff awards: Judge Hunt on Tuesday also filed an order awarding attorney fees, payment of litigation expenses and service awards to the class representatives in conjunction with the settlement approvals.

The Batton attorneys will receive $9.5 million — a third of the settlement fund — as payment, plus expenses and interest amounting to another $4.5 million. The "one-third" standard is often applied in class-action lawsuits and was approved in other commissions cases including Gibson and Sitzer/Burnett.

Plaintiffs Do Yeon Irene Kim, Michael Brace, Daniel Parsons, Anna James and Aaron Bolton each received service awards of $5,000; plaintiff James Mullis received $3,500; and plaintiffs Theodore Bisbicos and Mya Batton received $2,000 each.

The class counsel can also withdraw up to $500,000 from KW's portion of the settlement to create a fund to offset any ongoing and future litigation costs related to the lawsuit.

Tuccori opt-ins: Other defendants in Batton 1 include the National Association of Realtors and Anywhere Real Estate, both of which have received preliminary approval for opt-in settlements in a similar homebuyer case known as Tuccori.

If approved, the Tuccori deals would resolve all homebuyer claims against NAR and Anywhere. 

The Batton plaintiffs have moved to block the Tuccori opt-ins, claiming they are attempts at a "reverse auction" for the best settlement deal. The plaintiffs did not succeed in convincing the lower court, but an appeal filed in April is still pending. 

In the Batton 2 case — which makes the same claims and includes the same plaintiffs but different defendants — settlements reached by Compass, eXp and United via the Tuccori opt-in route were preliminarily approved in May. Meanwhile, Batton 2 proceedings against those companies are being stayed while the court waits to see if the Tuccori settlements receive final approval.