Chicago, IL: The GCVCC Advocacy Team is monitoring a class action lawsuit that was filed with the United States District Court in the Northern District of Illinois on Wednesday, March 6th. The suit is seeking an injunction against forcing a home-seller to pay the commissions of the buyer’s agent. The class action suit has been filed on behalf of “all persons who paid a broker commission since March 6, 2015 in connection with the sale of residential real estate listed on one of the Covered MLSs.” While the Coachella Valley is not directly related to the areas currently in play, the nature of the suit would have far reaching implications for the entire industry. In addition to damages, the suit specifically seeks to “award Plaintiff and the Class a permanent injunction, under Section 16 of the Clayton Act, enjoining Defendants from continuing to require sellers to pay the buyer broker and from continuing to restrict competition among buyer brokers”.
Many inside the industry consider this suit to be a serious threat, Robert Hahn of inman has stated “this case could be a nuclear bomb on the industry”.
“There are lot’s of suits filed annually in courts across the country that impact business in various ways, it is almost impossible to keep up with all of them,” says GCVCC CEO Joshua Bonner. “This one however has caught the chamber’s attention. For one thing, real estate is a significant driver for our local economy, pumping millions of dollars annually into our community. But most importantly, the industry supports thousands of jobs in our valley. If this case were to be ruled favorably for the plaintiffs, it would pose a significant threat to those jobs.”
For more information on this lawsuit, here are some news outlets reporting:
The GCVCC regularly monitors proposed legislation, court cases, and other local, state and federal actions that could impact Coachella Valley businesses. The chamber may take positions on bills, refer action to the Greater Coachella Valley Chamber of Commerce Political Action Committee, write letters of support or opposition, support amicus breifs, or other actions in defense of our business members and valley economy. For more information about GCVCC Legislative Advocacy, contact the chamber at 760.347.0676.