On October 31, 2023, a Missouri jury awarded the plaintiff class in Sitzer/Burnett v. Nar, et al a $1.78 billion damages verdict against several real estate brokerage companies and the National Association of Realtors, based on a finding that the defendants conspired to fix commission being paid by sellers in violation of Federal Antitrust law. Under Antitrust statutes, this amount will be trebled.

What You Need to Know: 

• On October 31, 2023, a Missouri jury awarded the plaintiffs a $1.78 billion damages verdict against several real estate brokerage companies and the National Association of Realtors, alleging a breach of the Federal Antitrust law.
• This verdict is against specifically named parties but already it has encouraged plaintiff's lawyers to file class actions against brokerage companies for potential Antitrust lawsuits and for parties to real estate transactions to  question real estate brokers as to whether they should have to pay commissions.
• Real estate brokerage companies must analyze their Antitrust policies and meet with their salespeople to verify their companies are in compliance with the law.

The jury's verdict was based on a finding that brokerage companies allegedly acted collectively to fix their brokerage commissions, resulting in higher paid commissions by parties to real estate transactions. This verdict is against specifically named parties and will be appealed but is encouraging plaintiff's lawyers to sue brokerage companies for potential Antitrust lawsuits since the Antitrust law (Clayton Act; 15 U.S.C.S. Sec. 15) allows the prevailing party to collect attorney's fees and for parties in real estate companies to question real estate brokers as to whether they should have to pay commissions.

Since this is a federal issue, real estate brokerage companies across our footprint must analyze their Antitrust policies and meet with their salespeople to verify their companies are in compliance with the law.  Among other steps we recommend is that companies ensure that their real estate brokers are reducing their commission rate agreements with their seller and buyer customers to writing.