In the news release, BAREIS Secures Victory in Dismissal of
Class Action Complaint Alleging Antitrust Law Violations, According
to Bartko LLP, issued June 6, 2024 by
Bartko LLP over PR Newswire, the links in the first two paragraph
have been updated as it was previously incorrectly transmitted by
PR Newswire. The complete, corrected release follows:
BAREIS Secures Victory in Dismissal of Class Action Complaint
Alleging Antitrust Law Violations, According to Bartko LLP
SAN
FRANCISCO, June 6, 2024 /PRNewswire/ -- In a
May 29, 2024 order, United States District Court Judge for the
Northern District of California,
Haywood S. Gilliam, Jr., in Grace
v. Bay Area Real Estate Information Services, Inc., et al.,
23-cv-06352, dismissed the plaintiff's first amended complaint
against Bartko LLP client Bay Area Real Estate Information
Services, Inc. (BAREIS). A PDF version of the Order can be accessed
here.
As noted in a recent article in Law360, BAREIS is a real estate
"multiple listing service," which serves real estate professionals
in the Marin, Sonoma, Napa,
Solano, and Mendocino Counties of Northern California. It is an independent MLS,
not owned or governed by the National Association of Realtors
(NAR). The plaintiff alleged that BAREIS and other
Defendants conspired, in violation of federal and California antitrust law, to require real
estate listing brokers to share commissions with a buyer's broker.
Such an action would raise the amount that the seller pays to a
broker, in connection with the seller's home sale. According to the
Plaintiff, this conspiracy was effectuated through BAREIS' MLS
rules, specifically Rules 11.2 and 11.5.
In rejecting the Plaintiff's allegations, Judge Gilliam held
that BAREIS' rules plainly do not require the listing broker to
share compensation with the buyer broker. Therefore, BAREIS' rules
could not form the basis of the conspiracy that the Plaintiff
alleged. As Judge Gilliam held, BAREIS' rules "simply
do not on their face require the results Plaintiff
alleges they do." Judge Gilliam felt constrained under
Ninth Circuit law to give the Plaintiff leave to file an amended
complaint. However, BAREIS is confident that no viable theory can
be asserted against them, and the complaint will ultimately be
dismissed with prejudice.
"This decision is remarkable for several reasons," said
Patrick M. Ryan, lead defense
counsel for BAREIS. Ryan added, "Given that in October 2023, class-action plaintiffs in
Missouri who made similar
allegations to those that Plaintiff made here, achieved a
$1.7 billion verdict (which trebled
would be $5.1 billion), Judge Gilliam
could have easily decided to allow this complaint to go forward. We
are, however, gratified that he examined the complaint carefully,
and agreed with us, that it had no merit." Ryan also added,
"The decision is also remarkable because we believe that it is the
only dismissal of any class action complaint brought by sellers,
alleging that defendants conspired to raise real estate
commissions."
The Defendant is represented by Bartko LLP, a top litigation
boutique. The team, led by Patrick M.
Ryan, also includes Jack
McLean and Jason A.
Zweig.
The Plaintiff is represented by Jill
Manning, Daniel Warshaw,
Bobby Pouya, Naveed Abaie, and Eric
Mont of Pearson Warshaw LLP, as well as Douglas Millen, Robert
Wozniak, and Matthew Ruan of
Freed Kanner London & Millen, LLC.
About Bartko LLP
Established in 1978, Bartko LLP handles complex business trials,
IP and trade secret claims, labor negotiations, employment
litigation and counseling, as well as real estate transactions and
franchise disputes. They win by thinking differently, while their
clients cross many industries including healthcare, finance,
software, retail, biotech, and real estate.
Jason A. Zweig |
jzweig@bartkolaw.com | 415.291.4505
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SOURCE Bartko LLP