Hanna Holdings lawyers dispute judge’s recollection in recusal spat

Judge Stephen Bough refused to recuse himself from a case involving Hanna Holdings, saying their attorneys already had a chance to flag an apparent conflict. Hanna attorneys say it’s not true.

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Attorneys for Hanna Holdings, the parent company of Howard Hanna Real Estate Services, are doubling down on efforts to remove Judge Stephen R. Bough from the Gibson commission lawsuit, according to legal papers filed Friday.

The latest missive — filed in the Western District of Missouri, where Bough is overseeing settlment talks with defendants Hanna Holdings, Berkshire Hathaway Energy and Crye-Leike — calls into question a claim made earlier this month in which Bough reminded the attorneys that he had already offered an opportunity to call for his recusal in May 2024.

Hanna attorneys, however, insist they weren’t in the room.

“Hanna Holdings writes to clarify that its local counsel was not in the courtroom for the final settlement hearing on May 9, 2024,” David Z. Gringer, a Hanna Holdings attorney, wrote in the filing, adding that he also checked with staff to determine if any attorney attended the meeting and found none who had. 

The letter is the latest in a legal back-and-forth between the largest remaining real estate defendants still battling plaintiffs in court over the Gibson antitrust allegations.

At a hearing in May 2024 that included attorneys for real estate defendants and homeseller plaintiffs who filed the antitrust lawsuit, Bough went around the room and asked lawyers in the case if they wanted him to recuse himself over donations that attorneys in the case made to his wife’s city council campaigns.

Earlier this month, Bough cited his recollection of that hearing in an order denying the request by defendants that he step aside as a result of the campaign contributions.

In response, Hanna Holdings attorneys wrote in a letter on Friday that they have no evidence that anyone representing the Pennsylvania-based brokerage was at the hearing. Additionally, the law firm didn’t submit any time entries to Hanna Holdings for work done in May 2024, and Hanna Holdings wasn’t a named defendant in the case.

“In sum, Hanna Holdings is confident that no attorney of any law firm representing Hanna Holdings in this litigation attended the final settlement hearing in [Sitzer | Burnett]. And it is likewise confident that the representations in the sworn declarations submitted alongside its motion for recusal were accurate.” 

Hanna Holdings attorneys have maintained that they only recently discovered the potential conflict of interest and demanded that Bough recuse himself shortly after the discovery.

They have pointed out that Bough recused himself in a separate, unrelated case in Missouri after defendants in that case also raised the apparent conflict of interest.

In his order denying the recusal demand, Bough speculated Hanna Holdings wasn’t as concerned about ethics as it was about a string of recent court denials in the Gibson case.

“The timing of Hanna Holding’s motion is noteworthy as it occurred after the court denied its motion to dismiss in December 2024 and motion to certify an interlocutory appeal in February 2025. Based on this timing, it appears Hanna Holdings’ motivations may have been driven more by ‘litigation strateg[y] than by ethical concerns.’”

The three real estate companies are also seeking to have the case transferred to courts in their home states. Bough has yet to rule on those requests.

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Coldwell Banker agrees to pay $20M to settle spam case

The case involved homeowners whose numbers were on the national do-not-call list but who reported getting telemarketing calls from Coldwell Banker agents. Class members are expected to get about $281 each.

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Consumers who received spam cold calls from Coldwell Banker agents are beginning to receive notices in the mail that they’re entitled to a piece of a $20 million settlement of a lawsuit filed in 2019.

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A slate of homeowners who sued the franchiser over alleged violations of the Telephone Consumer Protection Act (TCPA) agreed to a settlement agreement in the case, a move that would help Coldwell Banker avoid trial while also denying wrongdoing.

As part of the proposed settlement agreement, individuals whose numbers were on the National Do Not Call Registry but who still received two or more marketing calls from Coldwell Banker agents between June 11, 2015, and Dec. 3, 2020, are entitled to a piece of the settlement.

Coldwell Banker and the plaintiffs in the case reached a settlement agreement in December and received preliminary approval last month. Notices began being sent this month. Claimants have until July 3, 2025, to file claims and receive compensation.

The settlement also covers anyone who got a call from a Coldwell Banker agent that included an artificial or prerecorded message between June 11, 2015, and Dec. 3, 2020, according to the website outlining the terms of the settlement agreement.

In the suit, which was first filed in June 2019, the plaintiffs — homeowners Sarah Bumpus of California, Cheryl Rowan of Minnesota and Micheline Peker of Florida — alleged they received, without their consent, unwanted calls from agents affiliated with then-Realogy’s Coldwell Banker brand asking them to list their homes for sale. Rowan and Peker also alleged they received prerecorded messages from Realogy agents. 

The plaintiffs alleged the calls and messages violated the Telephone Consumer Protection Act (TCPA), which prohibits making unsolicited autodialed calls to consumers without their consent, including calls to consumers registered on the National Do Not Call Registry.

The plaintiffs alleged that Realogy’s motivation in allowing its affiliated agents to violate the TCPA was to grow its market share of listings, at least in part to use its market power to raise the prices on the homes it has for sale, “since fewer competing listings can undercut the real estate brokerage with lower home prices.”

Anywhere Real Estate, which owns Coldwell Banker, didn’t immediately respond to a request for comment about the settlement agreement.

A final settlement hearing is scheduled for Aug. 28 in San Francisco. The judge will then decide whether to grant final approval. Members of the class are expected to get approximately $281 each, depending on the number of claimants.

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Measure to disband Florida Real Estate Commission met with alarm

If passed into law, the bill would end the seven-member body that oversees licensing and disciplinary matters for 320,000 real estate professionals. Florida Realtors and other groups slammed the plan.

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A bill moving through the Florida Legislature seeks to eliminate the commission responsible for handling licensing and disciplinary matters for the state’s 320,000 real estate professionals.

The bill — which takes aim at the Florida Real Estate Commission, the body that is responsible for licensing and regulating real estate agents and brokers in the Sunshine State — has drawn fierce opposition from the real estate community.

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The seven-member commission, which is made up of brokers, agents and everyday Floridians and is appointed by the governor, also handles rulemaking.

“Right now we’re 320,000 active licensees across the state,” Millie Kanyar, a broker who is chair of the commission, told Inman. “Basically, our role is crucial in maintaining the public trust and potential integrity in real estate transactions.”

It’s not immediately clear how disputes and disciplinary action would be handled if the bill, HB1461, passes the House and Senate with the provision in place.

The bill is part of a broader deregulation push by the sponsor, Rep. Taylor Yarkosky, a central Florida Republican, that also takes aim at dozens of other commissions under the state’s Department of Business and Professional Regulation.

Among the other commissions targeted for elimination are the Board of Architecture and Interior Design, the Board of Landscape Architecture and the Construction Industry Licensing Board.

When Yarkosky introduced the bill in February, it didn’t include any mention of the real estate industry. It proposed updates to the construction licensing board and architecture board. It was revised last week to propose the outright elimination of a slew of boards and commissions, including the Florida Real Estate Commission. 

The Florida Real Estate Commission routinely handles dozens of disciplinary cases during its monthly meetings. It is scheduled to decide on dozens of applicants looking to obtain real estate licenses to operate in Florida at its meeting next week.

Hundreds of complaints are filed with the Real Estate Division each month. Many are investigated by the division’s 31 investigators. Depending on the outcome of a probable cause hearing, cases will go before the commission.

The Florida Homebuilders Association has come out in support of the bill. 

The International Association of Certified Home Inspectors and Florida Realtors were opposed, among others. 

“We do welcome continued conversation, including the conversation around the privatization of what would happen with the administration and oversight of Florida licensure within the state of Florida,” said Tim Weisheyer, broker of Dream Builders Realty and president of the Florida Realtors, during a hearing on the bill in a House subcommittee on Tuesday.

“We understand the intent of the bill and what the state is trying to do with deregulation in our state,” he said. “But we do truly believe that real estate is one of those that should be preserved.”

The Florida Realtors have five lobbyists working on the bill, according to state records.

The National Association of Realtors referred questions about the bill to the Florida Realtors, which didn’t immediately respond to questions about the bill.

Other opponents to the bill said it would threaten the integrity of the state’s real estate industry.

“FREC is a regulatory body composed of experienced brokers, agents, and public members who understand the nuances of real estate transactions, ethics, and consumer protection,” the American Real Estate Association said in a statement. “Replacing that expertise with a generic bureaucracy not only weakens professional oversight — it jeopardizes the public trust.

“Let’s be clear: this is not deregulation,” the group continued, “this is de-professionalization.” 

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Maryland broker is latest to target NAR’s ‘3-way agreement’

Jerome E. Milko filed an antitrust lawsuit against the National Association of Realtors, saying the requirement to join local, state and national Realtor organizations is an illegal conspiracy.

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Yet another broker is targeting the National Association of Realtors over the so-called three-way agreement, saying that fees that are required to do business in the real estate industry are being used for luxurious perks and salaries by the trade organization.

That’s according to a new antitrust lawsuit filed this week by a Maryland agent and broker who alleges the requirement that real estate professionals must become members of local, state and national Realtor organizations to access the multiple listing service is anticompetitive.

Jerome E. Milko joined a growing list of real estate brokers and agents who have filed similar lawsuits in recent months.

“Defendant NAR’s requirement of triple membership to meaningfully participate in the real estate market encourages discrimination between sellers, buyers, consumers, agents, and brokers, and the Defendant will continue protecting their cash flow from their fees obtained through compulsory membership,” Milko’s complaint reads.

Milko is an agent in Ocean City, Maryland, and holds licenses in that state as well as in Delaware and in Georgia, where the case was filed. He is a resident of Georgia, according to his complaint, which was filed in U.S. District Court for the Northern District of Georgia in Atlanta.

He said that in his 37 years as a licensed agent, he’s paid just over $26,000 to NAR, in addition to fees he’s paid to state and local Realtor organizations over that timeframe.

Milko cited a report from The New York Times in November that outlined the various perks and payments received by NAR leadership and members of their families.

“‘Volunteers’ with Defendant NAR have used membership ‘fees’ collected from the Plaintiff and other real estate market participants to pay for excessive salaries for volunteer positions, for ‘perks’ such as hotel resort stays for volunteers and spouses, golfing outings, wine, dinners, Broadway tickets, pet-care, and flights which constitute free luxury vacations for said ‘volunteers’ and their relatives,” Milko wrote in the complaint.

The Times article found NAR’s volunteer leaders are paid lavish stipends and other benefits that may skirt U.S. tax laws for nonprofits. In addition to former CEO Bob Goldberg’s $2.6 million annual salary, NAR agreed to cover the cost of private clubs in Chicago and Washington along with up to $75,000 of the initiation fee plus dues at a country club near his home in Maryland and may still be remunerating him as a paid consultant, according to the report.

NAR, the sole defendant targeted by the Milko’s lawsuit, has defended the three-way agreement, which requires agents and brokers to join a local, state and national Realtor association in order to qualify for membership in any of those NAR affiliates.

In response to the complaint, an NAR spokesperson said that becoming a member with NAR was “optional.”

“Similar to other national membership organizations, NAR’s federated ‘three-way’ structure connects members at every level, giving them a unified voice on policy issues, access to business tools, professional development opportunities and a uniform Code of Ethics,” the spokesperson said. “State and local associations set their own dues for members, but when agents opt to become a Realtor®, they’re not just joining a local association—they’re becoming part of a nationwide partnership that includes their state and the National Association of Realtors®, which helps to fund advocacy at all levels of government, as well as legal and economic research, consumer advertising, and the technology platforms that support the entire Realtor® community. We believe this structure delivers real value to help our members thrive in their careers—and we will respond to the Plaintiff’s claims in court.”

Milko’s suit alleges the agreement constitutes an illegal restraint of trade and unjust enrichment. He has requested a jury trial, damages and an injunction barring the agreement.

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Editor’s Note: This story was updated to include comment that came in after the story was initially published.

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Redfin to follow Zillow as it rolls out portal ban on some private listings

CEO Glenn Kelman on Monday also called on MLSs to create a “coming-soon” designation for listings that would conceal Days on Market and historical pricing data from consumers.

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Days after Zillow rocked the real estate industry with changes to its rules on private listings, Redfin followed suit with a ban on listings that don’t begin on a multiple listing service, CEO Glenn Kelman said in a statement Monday.

The two-paragraph announcement, which also calls on multiple listing services to create a “coming-soon” designation for listings that would conceal Days on Market and historical pricing data from consumers, is the latest twist to come as a result of an adjustment to NAR’s Clear Cooperation Policy last month.

“Because we believe that all buyers should be able to see all listings, Redfin.com will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS,” Kelman said in the statement. “To encourage home-sellers to market their listings via the MLS, Redfin is also asking MLSs to create a coming-soon designation for listings that precludes search sites from showing how long a home has been for sale and at what prices.”

Last month, NAR announced it would keep in place its Clear Cooperation Policy, which requires agents to put a listing onto an MLS within one business day of publicly marketing the property.

But it also created an exemption and new category of listings called “delayed marketing exempt listings,” which would allow sellers to have their listing agent delay putting a listing on the Internet Data Exchange (IDX) for a set period of time that would be determined by each multiple listing service.

In response, Zillow announced last week it would prohibit listings that are marketed privately for longer than a day. Listings that aren’t shared with an MLS within 24 hours of being marketed would be banned “for the life of the listing,” according to Zillow’s policy.

The change came in response to an ongoing push by major brokerages to create their own private listing networks.

Redfin said that it was fair to say its policy update, which it would implement after working through technical details over the coming months, was similar to Zillow’s and would apply to the life of the listing.

Other brokerages moved to align themselves in favor or against Zillow’s new policy. EXp and NextHome announced they supported the decision. Compass, @properties and others said they were opposed. Some opponents suggested Zillow was attempting to preserve its pipeline of leads that it generates through its platforms and sells to agents.

Kelman said Redfin, which is set to be acquired by Rocket Holdings, would advocate MLSs to create a new designation indicating a home is coming soon to the market.

“Other brokers have supported the idea of coming-soon listings, but with access limited to agents, and potentially only to their own agents,” Kelman said in a continuation of his statement. “This violates the principle established in the last great real-estate anti-trust battle, settled in 2008, that all brokerage customers should be able to see all MLS listings, online or via an agent. And that principle exists for a reason: once brokers give our clients control over how their listing appears online, every client will want that listing to appear everywhere.”

Homes.com so far has sought to distinguish itself from Zillow and Redfin’s policies, with CoStar CEO Andy Florance saying in a post over the weekend that Zillow’s policy update was “incredible move of audacity and a pure power play of epic proportion.”

“Rest assured, if Zillow does block your listing, it will still be seen on Homes.com and the other sites,” Florance wrote.

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