NextHome has become the latest brokerage to strike a settlement agreement with seller plaintiffs in ongoing commission lawsuits, joining more than a dozen other defendants who have negotiated deals in the largest Burnett copycat case (known as Gibson) led by star trial attorney Michael Ketchmark.
A judge paused all upcoming deadlines after NextHome and plaintiffs’ lawyers filed a joint notice today that they had reached “a settlement in principle” to end the litigation. Details were not immediately available as far as any payment made or practice changes agreed to, and a NextHome spokesperson did not immediately provide that information, noting that the company is currently holding its annual broker/owner summit.
Last week, the Keyes Company/Illustrated Properties, the largest independent brokerage in Florida, also settled. There are still nine companies litigating the Gibson case, with dozens more still facing around 20 other copycats around the country.
NextHome Founder and CEO James Dwiggins has notably been one of the most outspoken executives on the subject of the commission lawsuits. His company, founded in 2011 and boasting 600 offices around the country, was not named in the Gibson lawsuit until April of this year.
The agreement, like all other settlements, must receive final approval by a judge. Only Anywhere, RE/MAX and Keller Williams have received that approval, with several other companies set to have a hearing before a judge on Oct. 31. It also doesn’t cover (for the most part) lawsuits filed by homebuyers, which may be delayed after the judge in those cases recused herself last week.
The National Association of REALTORS®’ agreement is set for a separate hearing on Nov. 26, which will affect any brokerage that was covered by that deal (companies with lower than $2 billion in sales volume in 2022) and those who opted into that agreement (by paying additional money and making practice changes).
This is a developing story. Stay tuned to RISMedia for updates.
Jesse,
Just a question for you to ponder. Doesn’t this seem to be a massive money grab by the attorney? They won the lawsuit, and in principle, changes have been made. It seems like now, the only thing the attorney cares about, is how much money they can pad their pocket with. It appears that greed has settled in with the attorney. I would love to see you interview Ketchmark to get his take on why he immediately filed a second “copycat” lawsuit after he won his first case. Were the practice changes not good enough for them? Was justice not served? Is it all about the money? What are they accomplishing by continuing to file case after case?
It would also be interesting to get their opinion of NAR and all the good they have done over the years for consumers. We have fought tirelessly over the years to ensure access to homeownership for years. We have been the leading industry to protect the public and their individual property rights. We have given substantial money to the Realtors Relief Foundation, which has helped millions of people after natural disasters. Does he really want to tear that down to pad his pocket with more money?
If you could get an interview with Ketchmark and ask these questions, I would love to read that article!
Thanks for all your great reporting Jesse, I truly love reading your articles!