Motions to Dismiss Filed in Two Home Seller Cases (Gibson and Umpa)
An Update from Katie Johnson, NAR Chief Legal Officer and Chief Member Experience Officer
I'm writing to share a brief litigation update but first let me acknowledge that we understand that these are challenging times for our members and the industry, and we appreciate all the feedback and support as we navigate these challenges toward a positive outcome for property owners and the real estate profession.
Yesterday, we filed motions to dismiss in two of the copycat home seller class action cases, the Gibson case and the Umpa case, both of which are pending before Judge Stephen Bough in federal court in the Western District of Missouri.
As you may recall, these two copycat lawsuits were filed late last year, shortly following the Burnett verdict. As in the Burnett case, the plaintiffs in Gibson and Umpa claim that NAR and corporate defendants conspired to force home sellers to pay buyer broker commissions. Both cases are among those the Judicial Panel on Multidistrict Litigation (JPML) will consider centralizing at a hearing scheduled for next month.
NAR's motions raise issues relating to the specific allegations in these national cases that are in addition to those decided by the court in the Burnett case, which is a Missouri-only case. We believe that the cases should be dismissed because listing brokers or buyers, not sellers, compensate buyer brokers and because offers of compensation are authorized by state real estate laws. MLS rules do not require any particular amount of compensation (zero is allowed in some MLSs), and the MLS can be easily avoided by sellers who prefer to avoid any MLS rules.
Other defendants filed motions arguing for additional grounds for dismissal. The plaintiffs will have an opportunity to respond to these motions before the court rules on them.
We will continue to keep you informed about legal milestones. As always, please feel free to reach out to me or my team with any questions.
