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Real Estate

DOJ asks appeals court docket to talk in REX case towards Zillow

Editorial Board
Editorial Board Published January 10, 2025
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DOJ asks appeals court docket to talk in REX case towards Zillow
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DOJ asks appeals court docket to talk in REX case towards Zillow

Attorneys for the DOJ’s Antitrust Division on Wednesday submitted a request to supply an oral argument alongside REX, Zillow and NAR within the U.S. Courtroom of Appeals for the Ninth Circuit on Feb. 13.

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The U.S. Division of Justice’s multi-front struggle towards sure Nationwide Affiliation of Realtors guidelines is probably going heading to an appeals court docket in February.

The antitrust enforcer is asking to talk at oral arguments in an attraction filed by now-defunct low cost brokerage REX, also referred to as Actual Property Trade, in litigation towards NAR and actual property big Zillow.

Oral arguments within the case are scheduled for Feb. 13 and the court docket has allotted 20 minutes to every facet. On Jan. 8, attorneys for the DOJ’s Antitrust Division submitted a movement requesting 5 minutes on high of that allotment from the U.S. Courtroom of Appeals for the Ninth Circuit.

The DOJ famous that it beforehand submitted an amicus temporary within the case in June in help of neither celebration, with out taking a place on the case’s final final result.

“Instead, the United States explained that, although the district court appeared to have a limited view of when optional association rules can represent concerted action under Section 1 of the Sherman Act, there are additional ways that optional rules constitute concerted action that the court did not appear to consider,” the DOJ’s attorneys wrote in the movement.

“The United States thus urged this Court to vacate and remand the case for the district court to apply the proper legal framework to the evidence in this case.”

The federal company added that it believes its participation “would be helpful to the Court” and that the DOJ “has a significant interest in the proper application of [federal antitrust] laws,” together with how they apply to the true property business.

The movement famous that not one of the events oppose the DOJ’s request for 5 minutes, however they do disagree about the place the 5 minutes ought to be taken from.

In response to the submitting, Zillow and NAR say the 5 minutes ought to come out of REX’s time to talk, whereas REX says the DOJ’s time ought to be added on with out affecting both sides’s time. Nevertheless, the submitting notes that REX would agree to 2 potential options: granting REX 20 minutes, the DOJ 5 minutes, and Zillow and NAR collectively 25 minutes; or, that REX would cede 5 of its 20 minutes in an effort to have the DOJ take part, although the latter is “not REX’s preference.”

The DOJ’s June amicus temporary took purpose at NAR’s non-compulsory “no-commingling” rule, which, when adopted by an MLS, requires brokerage web sites to separate shows of MLS listings from non-MLS listings. As a result of REX didn’t use MLSs for many of its existence, REX’s go well with alleges that this led to restricted visibility of REX’s listings on Zillow and the rule is due to this fact anticompetitive.

REX’s antitrust claims towards NAR and Zillow have been thrown out earlier than trial, REX misplaced on its remaining claims at trial, after which the brokerage was subsequently denied a request for a retrial. REX is interesting that latter ruling.

In response to the DOJ’s amicus temporary, the “no-commingling” rule’s “optional nature” doesn’t forestall it from probably being anticompetitive and that the court docket choice denying a retrial didn’t totally consider that associations like NAR could have circumvented antitrust oversight by enacting such non-compulsory guidelines.

The DOJ additional argued that Supreme Courtroom precedent has proven non-compulsory guidelines could contain “concerted action” that may make these guidelines “mandatory in practice” and that the court docket ought to vacate the district court docket’s denial of a retrial in order that the decrease court docket totally considers REX’s argument that the non-compulsory rule nonetheless invited NAR, MLSs and Zillow “to participate in a common plan.”

Learn the movement (re-load web page if doc will not be seen):

E-mail Andrea V. Brambila.

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TAGGED:appealsasksCaseCourtDOJREXspeakZillow
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