The Position of Crye-Leike in the Ongoing NAR Commission Litigation
Recent developments in the legal landscape surrounding real estate commissions have placed Crye-Leike at the center of attention due to its significant sales volume and implications for the ongoing Gibson lawsuit.
Crye-Leike’s Financial Standing
Data from RealTrends Verified indicates that Crye-Leike recorded a sales volume of approximately $7 billion in 2022. This figure is pivotal, as it currently excludes the company from being part of a significant legal settlement pertaining to commission rates, unless it is deemed to operate as multiple independent entities.
Identification of Separate Companies
Harold Crye, the owner, asserts that his business comprises six distinct companies, including:
- Crye-Leike Inc.
- Crye-Leike of Arkansas
- Crye-Leike of Mississippi
- Crye-Leike of Nashville
- Crye-Leike South
- Adaro Realty
Each of these companies operates with its own management and accounting systems, a claim that will contribute to how they are classified in legal contexts.
Overview of the Gibson Lawsuit
The Gibson commission lawsuit, which was initiated shortly after the verdict in the Sitzer/Burnett case, shares many similarities with its predecessor. Both lawsuits contend that the National Association of Realtors (NAR) and involved brokerage firms conspired to inflate commission rates for buyer agents, with proceedings carried out in Missouri.
Notably, the Gibson suit involves a broader range of defendants compared to Sitzer/Burnett.
Settlements in Related Cases
Two defendants from the Gibson suit, Weichert and eXp, have reached settlements of $8.5 million and $34 million respectively in a similar Georgia case, pending preliminary approval. The outcomes of these settlements may influence the developments in the Gibson lawsuit as well.
Judicial Oversight and Controversy
Judge Stephen Bough, who oversees the Gibson suit after previously presiding over Sitzer/Burnett, has faced scrutiny regarding potential conflicts of interest. The conflict has been raised by Howard Hanna Real Estate Services, which claimed Bough should recuse himself due to a donation made by a plaintiffs’ attorney, Matthew Dameron, to a local political candidate, Andrea Bough, who is Judge Bough’s wife.
Previously, Judge Bough chose to recuse himself from a different case citing similar concerns, a fact that Howard Hanna has highlighted to reinforce their stance on the current lawsuit.
