Five More Brokerages Join California’s Commission Lawsuit

Northern California’s Grace lawsuit, named after its lead plaintiffs, has expanded with five additional defendants, including Vanguard Properties, Twin Oaks Real Estate, Windermere Real Estate Services Company, Rapisdara & Fox, and Realty One Group. The antitrust suit, originally filed in early December, targets the Participation Rule of the National Association of Realtors (NAR) and implicates brokerage firms operating in the Northern District of California.

Vanguard, with around 500 agents, covers Marin, Sonoma, Napa, San Francisco, East Bay, and Palm Springs counties. Twin Oaks, headquartered in Solano County, boasts approximately 100 agents, while Windermere, based in Seattle, operates substantially in the Northern District of California with over 6,500 agents. Rapisdara & Fox, an affiliate of Realty One Group, serves the Northern San Francisco Bay Area, Solano County, Napa County, Sonoma County, and Yolo County, employing roughly 100 agents.

The lawsuit challenges NAR’s Participation Rule, requiring listing agents to extend a blanket offer of compensation to the buyer’s broker for MLS listings. The amended complaint asserts that the Participation Rule applies to BAREIS MLS, although it is partially broker-owned, citing NAR members’ involvement. The lawsuit demands class action status, targeting homeowners who listed and sold a property on BAREIS MLS between December 8, 2019, and the present, seeking a jury trial, damages, a permanent injunction against requiring sellers to pay the buyer broker, and restitutionary disgorgement.

In late December, plaintiffs in other commission suits sought consolidation under Judge Stephen Bough in Missouri, who oversaw the Sitzer/Burnett trial. The court has yet to rule on this motion.