Kelller Williams settles after home-sales fee verdict

One of the defendants in a landmark jury verdict against the real estate industry has agreed to settle out of the case for $70 million.

In a court filing on Feb. 1, attorneys for the plaintiffs said Keller Williams had agreed to a $70 million payment and to change its practices in charging commissions.

Keller Williams was one of several real estate companies who, along with the National Association of Realtors, were hit with a nearly $1.8 billion verdict in Kansas City federal court last year. The class action suit targeted the standard requirement that home sellers pay a 6 percent commission that is split between their own agent and that of the buyer.

The defendants were jointly and severally liable for the massive award, which was based on 265,000 home sales in the Kansas City region during a seven-year period. The plaintiffs’ attorneys with the Kansas City firms of Ketchmark and McCreight, Boulware Law and Williams Dirks Dameron have filed a similar suits making claims on behalf of home sellers nationwide.

Prior to trial, two other named defendants — Anywhere Real Estate and RE/MAX — reached settlements of $83.5 million and $55 million. Judge Stephen Bough, who oversaw the trial, has given preliminary approval to those settlements and set a May 9 hearing for final approval.

In the court filing, the plaintiffs asked Bough to preliminarily approve the Keller Williams settlement as well and to included it in the May 9 hearing, citing the “substantially similar relief” it offers and the “extraordinary cost savings” in informing class members of all three settlements together.

The Realtors association and the other remaining defendant, HomeServices of America, have urged the court to reduce or overturn the Oct. 31 verdict. Those motions remain pending.

The case is Burnett v. National Association of Realtors et al., 4:19-cv-332.

RELATED:

KC jury delivers massive blow to real estate industry

Ketchmark named Lawyer of the Year

RE/MAX settles in house-sale fees class suit

Partial settlement reached in class suit over house-sale fees