As the defense was expected to wrap up its testimony Friday, and with closing arguments set to come as early as Monday, real estate’s “trial of the century” has had industry professionals glued to their seats to find out how the jury will come down on the fate of buyer agency compensation in the United States.
Three more live witnesses, included Keller Williams Founder Gary Keller, and two more video testimonies were expected Friday followed by a conference on jury instructions, which was shaping up to be yet another dispute between the plaintiffs and the defendants on what rules jurors have to follow when deliberating.
The plaintiffs’ case hinges on convincing a jury that the major corporate brokerages conspired with NAR on rules that limited competition and harmed consumers, focused specifically on buyer agent compensation. At stake? A nearly $1.8 billion settlement paid to those sellers who comprise the class, and of broader concern to the real estate industry: sweeping changes to the way real estate professionals are compensated, and a possible elimination of the need for buyer’s agents altogether.
RISMedia has been on location in Kansas City since the trial began on Monday, Oct. 16 in order to provide up-to-the-minute daily coverage. Below is a recap of the highlights you need to know from the last two weeks. Click here to join RISMedia’s Premier and gain access ongoing coverage.
Continued Jury Selection Delays Opening Statements in Burnett v. NAR Trial
Monday, Oct. 16 – Opening statements were delayed as attorneys continued to vet potential jurors during an extended voir dire process. Read why several jurors were immediately dismissed as potential members of the class.
NAR Lawyers Tell Jurors Not to Fall for ‘Shell Game’ as Burnett Trial Kicks Off
Tuesday, Oct. 17 – The fireworks got started right away with both sides making their opening statements, with lead attorneys for both the plaintiffs and the defendants forcefully laying the groundwork for their respective cases.
Plaintiffs Grill 3 of Real Estate’s Most Powerful Players
Wednesday, Oct. 18 – Via video testimony, the plaintiffs attorneys grill three of real estate’s heavy hitters: Bob Goldberg, Gino Blefari and Gary Keller. Here’s what they said on topics of price fixing, steering, collusion among competitors and antitrust conspiracies.
RISMedia CEO: NAR Showed Plaintiff Evidence Taken Out of Context
Also on Wednesday, RISMedia Founder and CEO John Featherston offered his thoughts on how the trial was going.
Plaintiffs Take Stand as Burnett Trial Heats Up
Thursday, Oct. 19 – The class representatives for the plaintiffs—recent homesellers in the Missouri area—took the stand live to tell their stories, guided by lead attorney Mike Ketchmark, who has so far demonstrated a flair for the dramatic. Said Burnett, “We were willing to pay the seller’s agent. Our problem was paying a buyer’s agent to work against us.”
‘Distortions of the Law:’ HomeServices Slams Burnett Plaintiffs’ Courtroom Strategy
Also on Thursday, we reported that lawyers for the defendants (specifically representing HomeServices of America) continued to contest some of the more dramatic portions of plaintiffs’ testimony and arguments about how real estate commissions are decided in this update:
‘Expert Witness’ and NAR Clash on Alleged Collusion
Friday, Oct. 20 – Tempers flared among legal teams as plaintiffs’ lead attorney sought to drive home claims of economic conspiracy when he called expert witness Texas A&M professor and economist Dr. Craig Schulman to the stand. However, NAR lead attorney Ethan Glass forcefully cross examined Schulman to debunk the claims he put forth during his testimony.
HomeServices Petitions for Immediate Judgment Against Plaintiffs
Monday, Oct. 23 – Coverage of HomeServices of America filing a motion for summary judgment—a ruling in its favor without any further proceedings—just as the plaintiffs are about to rest their case, claiming that no evidence has been presented to show they conspired together on rules or commissions.
Judge Again Denies Defendants in Burnett Trial
Also on Monday, we reported on lawyers for HomeServices taking another stab at the legal foundation of some of the plaintiff’s arguments—again, unsuccessfully, as Judge Stephen R. Bough denied their request to introduce new evidence.
Goldberg Takes Stand as NAR Defends Value of Buyer Agents
Tuesday, Oct. 24 – Coverage of the live testimony of NAR CEO Bob Goldberg being questioned on the stand by defense lead attorney Ethan Glass. Goldberg spoke at length about REALTOR® values—professionalism, increased trust from abiding by the Code of Ethics, and knowledge that goes “above and beyond” other licensed agents.
HomeServices Demands Mistrial After ‘Vulgar’ Video Shown to Jury
Wednesday, Oct. 25 – Coverage of trial heating up as HomeServices of America demands a mistrial after the plaintiffs showed a surprise video clip of BHHS SVP of Research and Development Allan Dalton talking about commission negotiations, which attorneys for the defendant described as “vulgar.”
Judge Denies Petition for Mistrial; NAR Loses Bid for Immediate Judgment
Thursday, Oct. 26 – The judge denies the petition for a mistrial, saying that alleged misconduct and prejudicial actions by the plaintiffs did not warrant starting over in front of a new jury. HomeServices of America Founder and Chairman Ron Peltier testifies the company has never done anything without the “highest of integrity, honesty and sincerity.” Lead plaintiffs’ attorney lashes back.
Gino Blefari Takes the Stand in Defense of HomeServices, Industry at Large
We also covered Gino Blefari and lead plaintiffs’ attorney sparring as Blefari takes the stand live following his video testimony.
Economist Disputes Evidence of Conspiracy, Price Fixing in Data
Friday, Oct. 27 – Coverage of NAR bringing in its own expert witness, Dr. Lawrence Wu, a Stanford-educated economist who has also worked for big government agencies, to counter claims made by the plaintiffs’ expert witness Schulman last week.
Stay tuned for ongoing updates on the trial.
