Quick Thoughts on MLS PIN Settlement Delay
Judge Saris loves the rule changes.
Good afternoon everybody. I have to hop on a presentation in a half hour or so, but wanted to get this out to everybody.
You might have heard or read about the refusal of the judge in the Nosalek v. MLS PIN case to approve the settlement agreement. Inman News had good coverage of it, as the hearing was done over Zoom. Read the whole thing.
I think the key thing to keep in mind here is that the pushback was only over the financials of the settlement. Judge Saris, who is on this case, “loved” the rule change part of the settlement. From Inman:
She admitted that she did “love” the proposed rule changes in the settlement, which would make the offering of compensation to buyer brokers optional, similar to changes broker-owned Northwest MLS has adopted. The changes are contingent on the settlement’s approval.
“I do love what you’ve accomplished,” Saris said. “I had problems with that [rule], so I denied the motion to dismiss and I think two other courts did as well.”
She said she “loves” the idea of stopping the practice of requiring listing brokers to offer compensation to buyer brokers “so that at least it stops the damages. The other defendants might like that, too. It sort of caps it, if you will.”
Saris said that was a reform that was “worthwhile.”
“I do think the rule change is important and congratulations,” she said. “I’m just worried here about the fairness … of how you’ve structured it, which is the individual plaintiffs get no dollars.”
If this holds, then whatever happens with the money from the settlement fund is irrelevant to the industry as a whole. An approved settlement making compensation “optional” as it is in Northwest MLS is a huge win for the industry as nothing would change.
Four things to consider then going forward.
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