• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

Court Rejects REBNY Bid To Toss Compass Antitrust Suit

April 2, 2022
in Real Estate
0
RE/MAX Urges NAR To Reject Listing Attribution Proposal Entirely
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter


The allegations that the Real Estate Board of New York conspired with Corcoran and Douglas Elliman to “smother” competition move forward.

A federal court on Thursday declined to toss antitrust claims filed by real estate brokerage Compass against the Real Estate Board of New York (REBNY).

In a March 31 order, Judge Alison J. Nathan of the U.S. District Court of the Southern District of New York denied, in part, REBNY’s motion to dismiss a lawsuit filed by Compass in March 2021.

The suit alleges that REBNY conspired with two of its member brokerages, Douglas Elliman and the Corcoran Group, to collectively modify and enforce the trade group’s rules “in an anticompetitive manner” in order to “smother” the newer company.

REBNY, allegedly at the urging of Douglas Elliman and Corcoran, adopted a rule (Article II, Section 7) in 2018 stating that if an agent representing a seller switches to another brokerage, that agent may not contact the seller without the former brokerage’s prior written consent unless the seller signed a certification stating they wished to keep their relationship with the agent.

Compass argued this rule reduced agent mobility and prevented Compass from attracting new agents.

REBNY later modified the rule to eliminate the seller option of signing a certification to move with their agent to a new brokerage, again allegedly at the urging of Corcoran and Douglas Elliman. The complaint contends that the two brokerages collectively have more than 50 percent market share in the Manhattan residential real estate market.

Compass’s lawsuit includes claims that REBNY violated New York’s primary antitrust statute, the Donnelly Act, and the federal Sherman Antitrust Act as well as a claim for tortious interference with prospective economic advantage, which is when a third party intentionally and unlawfully interferes with a business relationship.

Judge Alison J. Nathan

The court rejected REBNY’s motion to dismiss the antitrust claims, but granted the trade group’s bid to toss the third claim for tortious interference.

“Compass has plausibly shown, by indirect proof, that the coordinated adoption, revision, and selective enforcement of Article II, Section 7 by REBNY adversely affects competition market-wide,” in part by allegedly preventing consumers from choosing to switch to different brokerages along with their agents, Nathan wrote.

“As Compass alleges, this provision has allowed at least two brokerage firms with over 50 percent market share combined to shrink consumer choice,” Nathan added.

Nathan did not buy a claim from REBNY that exclusive listings are the property of the brokerage, per New York law.

“But by its plain language, only ‘listing information,’ not the listing itself, is property of the brokerage once an agent’s relationship with the brokerage is terminated,” Nathan wrote.

While REBNY had argued that it didn’t make sense to conspire with just two member firms, Nathan said Compass had pled a plausible motive because of the “outsized power and sway” of Corcoran and Douglas Elliman.

“Together they make up over 50 percent of the proposed market and have a disproportionate number of representatives on REBNY’s governance boards,” Nathan wrote. “Taking the allegations in the complaint as true, it is plausible that REBNY is beholden to, and acted in furtherance of, these co-conspirators’ interests.”

Nathan dismissed the tortious interference claim because Compass did not claim interference with a specific business relationship and therefore its allegations were “too vague.”

In an emailed statement, a Compass spokesperson told Inman, “We are pleased that the Court has denied REBNY’s motion to dismiss our antitrust claims and look forward to continuing to demonstrate that REBNY’s anti-competitive actions have a negative impact on buyers and sellers of New York City real estate.”

“We appreciate the Court’s dismissal of the case regarding claims of tortious interference and remain confident in the merits of our defense,” REBNY President James Whelan said in an emailed statement to Inman. “REBNY’s co-brokering rules, which Compass has helped to shape and enforce as a REBNY member, are based upon State law and legal precedent. We look forward to the discovery process and demonstrating the lawfulness of the rules.”

Read the judge’s order:

Email Andrea V. Brambila.

Like me on Facebook | Follow me on Twitter



Tags: antitrustbidCompasscourtREBNYrejectssuittoss
Previous Post

The Little Things Newsletter #306 – Life, laughter, and lots of great food!

Next Post

Here’s Why There’s ‘Crop’ & ‘Story Time’ Comments Under TikTok Videos

Related Posts

The 5 Factors to Leaving a Soul-Sucking Job
Real Estate

The 5 Factors to Leaving a Soul-Sucking Job

Quitting your job is a...

Read more
The Biggest Stories Of The Week: Inman Top 5 (Aug. 5-11, 2022)
Real Estate

The Biggest Stories Of The Week: Inman Top 5 (Aug. 5-11, 2022)

Looking for a quick catch-up...

Read more
Time-Saving Real Estate Accounting Tips for New Investors
Real Estate

Time-Saving Real Estate Accounting Tips for New Investors

Sponsored

Read more
Is this company a scam? They kept a friend name on a loan in 2018 but they have the deed and are renting the house out. : RealEstate
Real Estate

Is this company a scam? They kept a friend name on a loan in 2018 but they have the deed and are renting the house out. : RealEstate

TL;DR: Every time you search,...

Read more
Redfin Ramping up Mortgage Business With $135M Acquisition
Real Estate

Redfin’s iBuyer Expands Into Florida Among The Hottest US Markets

RedfinNow is operational in the...

Read more
Load More
Next Post
Here’s Why There’s ‘Crop’ & ‘Story Time’ Comments Under TikTok Videos

Here's Why There's 'Crop' & 'Story Time' Comments Under TikTok Videos

  • Trending
  • Comments
  • Latest
Six times actors really romped in sex scenes that make 365 DNI look tame

Six times actors really romped in sex scenes that make 365 DNI look tame

Do Sex Dolls Feel Real? – Answering Important Questions 

Strictly: Ofcom assessing Steve Allen’s Tilly Ramsay comments

Strictly: Ofcom assessing Steve Allen’s Tilly Ramsay comments

How old is Simon Cowell’s son Eric and who is his mother?

How old is Simon Cowell’s son Eric and who is his mother?

Accounting vs. Law: What’s the Difference?

Accounting vs. Law: What’s the Difference?

Lexus second BEV | Automotive News

Value-for-money holidays: Inside a new all-inclusive resort in Turkey that will suit all tastes

Value-for-money holidays: Inside a new all-inclusive resort in Turkey that will suit all tastes

Now You Can Learn Linux Online in Your Own Time

Now You Can Learn Linux Online in Your Own Time

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

Accounting vs. Law: What’s the Difference?

Accounting vs. Law: What’s the Difference?

Lexus second BEV | Automotive News

Accounting vs. Law: What’s the Difference?

Accounting vs. Law: What’s the Difference?

Lexus second BEV | Automotive News

Value-for-money holidays: Inside a new all-inclusive resort in Turkey that will suit all tastes

Value-for-money holidays: Inside a new all-inclusive resort in Turkey that will suit all tastes

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist