Jury Awards $1.78B Verdict in Real Estate Brokerage Fee Antitrust Class Action

In a class action suit in the U.S. District Court for the Western District of Missouri, a jury recently found a real estate trade group and several real estate brokerages guilty of colluding to inflate broker commission rates in violation of federal antitrust law.  The jury awarded the class plaintiffs $1.78 billion in compensatory damages, which, with the court’s approval, could increase to up to $5.36 billion under the Sherman Act’s treble damages provision.

The class plaintiffs, Missouri home sellers, allege that the real estate trade group maintained a rule requiring home sellers to pay a nonnegotiable fee to the broker representing the home buyer or risk not having their home listed in the MLS database.  The brokerages allegedly participated in the conspiracy by implementing and enforcing the trade group’s rule.  As a result, the class plaintiffs allege, home sellers were forced to pay inflated fees that would otherwise be paid by the home buyer.

The trade group is expected to appeal the jury’s verdict. 

The case is Sitzer et al v. National Association of Realtors et al, 4:19-cv-00332 (W.D. Mo. 2019).