realestate

Judge Rejects Dismissal Requests from Gibson-Umpa Defendants

Several major brokerages, including Hanna Holdings, eXp and Weichert, still face unresolved litigation over buyer agent commissions.

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US District Court judge has denied multiple motions to dismiss the buyer agent commissions lawsuit filed against several brokerages, including Hanna Holdings, eXp, and Weichert. The case, Gibson/Umpa, will proceed with litigation after Judge Stephen Bough's ruling on December 16.

    The defendants who sought dismissal were largely those that have not settled or whose settlements are pending approval. Bough denied motions from Hanna Holdings, eXp, Weichert, Berkshire Hathaway Energy, William Raveis, Real Estate One, Crye-Leike, Illustrated Properties, and Windermere related to the claims, jurisdiction, or venue.

    In his decision, Bough stated that the plaintiffs had plausibly alleged a connection between the defendants and Western Missouri. For example, Berkshire Hathaway Energy has a subsidiary in the district, while Hanna Holdings receives referral income from affiliates in the area.

    Bough also ruled that the plaintiffs' factual allegations regarding antitrust injury and anticompetitive conduct were sufficient to survive dismissal motions. He denied motions from defendants seeking to enforce arbitration or class action waiver provisions on class members.

    The Gibson case was filed in October 2023, shortly after a verdict in Sitzer/Burnett, and consolidated with Umpa in April 2024. Several defendants have settled, but those settlements are being appealed. The judge's ruling allows litigation against eXp and Weichert to continue pending further discovery, following their separate settlement in Georgia that has raised questions from the Gibson plaintiffs.

Judge denies dismissal requests in Gibson-Umpa case, legal documents in courtroom.