West Penn MLS finally got its way in the Moratis commission lawsuit.
Despite having opted into the nationwide commission lawsuit settlement agreement reached by the National Association of Realtors (NAR), Judge William S. Stickman IV, who is overseeing the Moratis suit in the Western District of Pennsylvania, refused to stay the case for the MLS. On Monday, that all changed, as Stickman announced his decision to grant a joint motion from West Penn MLS, Howard Hanna Real Estate Services and Everest Consulting Group LP to dismiss the case.
The three defendants were dismissed with prejudice, according to court filings. The defendants filed their motion to dismiss in June. Howard Hanna had not reached a settlement agreement.
Prior to Stickman’s latest ruling, he had sided with the plaintiffs, who claimed that staying or dismissing the case for the defendants as they wait for final approval of their settlement agreements “would cause significant prejudice to Plaintiffs, would not serve judicial efficiency, and would not significantly alter the ultimate burden” on the defendants.
Due to Stickman’s decision to dismiss the three defendants, combined with the case being stayed for the remaining defendants due to pending settlement agreements, the court decided to close the case. Despite the closing of the case, the parties can request a status conference or seek to reopen the case by filing a motion.
“We are grateful that the Court has recognized that this case was meritless,”Howard “Hoby” Hanna IV, the CEO of Howard Hanna Real Estate Services, wrote in an email. “Howard Hanna has always operated independently to prioritize our clients, and we will continue to uphold this commitment moving forward.”
Originally filed in December 2023 in Pennsylvania, the Moratis lawsuit — which was formerly known as the Spring Way suit — accuses real estate industry players of colluding to artificially inflate agent commissions. It takes aim at NAR’s Participation Rule, which requires listing agents to make a blanket offer of compensation to buyer’s agents in order to list a property on a Realtor-affiliated MLS.
West Penn MLS did not immediately return a request for comment.
