Remax Settles Batton Homebuyer Commission Lawsuit For $8.5m

After over five years of litigation, REMAX has settled the Batton homebuyer commission lawsuit for $8.5 million. The firm announced its settlement in a document filed with the Securities and Exchange Commission (SEC) on Wednesday.

In the filing, REMAX noted that the settlement is “not an admission or concession of liability, or of the validity of any claim, defense, or point of fact or law on the part of any party.”

“REMAX continues to deny the material allegations of the complaints in the Lawsuit. REMAX entered into the Settlement Agreement after considering the risks and costs of continuing the litigation,” the SEC filing states.

Of the $8.5 million, $1.5 million will be paid into the settlement fund after the agreement receives preliminary approval with the remaining $7.0 million being paid after the settlement gains final approval. 

According to the SEC filing, a motion for settlement filed by the Batton plaintiffs on Wednesday, the settlement resolves all claims that were not covered by REMAX’s settlement in Sitzer/Burnett 

Due to this, the settlement class includes all individuals who have never sold a home or have not sold a home during the time periods covered by REMAX’s Sitzer/Burnett settlement. Additionally, the SEC filing notes that the settlement releases “REMAX and the Company, their subsidiaries and affiliates, and REMAX sub-franchisors, franchisees and their sales associates in the United States from the claims.”

REMAX did not immediately return HousingWire’s request for comment about its decision to settle this lawsuit. 

In settling the Batton litigation, REMAX joins Keller Williams as the only other defendant in both Batton lawsuits to reach a homebuyer commission lawsuit settlement with the Batton plaintiffs. Keller Williams announced its settlement in early February. The agreement, which will see Keller Williams pay $20 million into the settlement fund, received preliminary approval in mid-February. 

Although Keller Williams and REMAX are the only real estate firms to settle these homebuyer claims with the Batton plaintiffs, several other brokerage firms have reached settlements in other homebuyer commission lawsuits, including Anywhere Real Estate, Real Brokerage and Hanna Holdings, which all reached settlements in the Tuccori suit. The Batton plaintiffs have sought to block the settlements reached by Anywhere and Hanna Holdings from gaining preliminary approval, as the defendants obtained those settlements through an opt-in feature in a master settlement in the Tuccori suit.  

With the court denying a motion to dismiss the Batton II lawsuit filed by eXp World Holdings, Weichert Realtors and United Real Estate earlier this week, perhaps more settlements will be on the table soon.