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Eighth Circuit upholds Gibson brokerage commission settlements
The ruling rejected claims that the settlements improperly released buyer claims and found no due process violation at the fairness hearing.
A three-judge panel of the U.S. Court of Appeals for the Eighth Circuit upheld a set of brokerage settlements in the Gibson copycat commission case, reaffirming the district court’s approval. HousingWire reports the court rejected renewed arguments that the settlements improperly released buyer claims and that the fairness hearing violated due process.
The upheld settlements cover Compass, Redfin, The Real Brokerage, Realty ONE Group, At World Properties, Douglas Elliman, Engel & Völkers, HomeSmart, and United Real Estate, according to HousingWire. The brokerages agreed to the same business practice changes outlined in the National Association of Realtors settlement terms.
Objectors, including James Mullis, Monty March, Robert Friedman, and Benny Cheatham, argued again that the Gibson settlement was inadequate and improperly released claims involving other non-NAR listing services and homebuyers. The appeals court said buyer and seller claims could be released together because they stem from the same alleged underlying conduct, rejecting the argument that the claims were separate because they relate to different transactions.
HousingWire also reports that the court found no due process violation despite the district court requiring objectors to attend the fairness hearing in person. It noted objectors received notice, had an opportunity to present objections, and the district court considered them on the merits, and the parties have two weeks from Sept. 1 to seek rehearing or rehearing en banc.