Besides Remax, LLC, which other entities are named as defendants in the Moehrl case?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- Christopher Moehrl, Michael Cole, Steve Darnell, Jack Ramey, Daniel Umpa, and Jane Ruh v. The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, Inc., BHH Affiliates, LLC, HSF Affiliates, LLC, The Long & Foster Companies, Inc. RE/MAX, LLC., and Keller Williams Realty, Inc., Case No. 19-cv-01610, pending in the United States District Court for the Northern District of Illinois, filed on March 6, 2019.
Source: Item 3 — LITIGATION (FDD pages 21–29)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, several entities, in addition to RE/MAX, LLC, are named as defendants in the Moehrl case. These include The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, Inc., BHH Affiliates, LLC, HSF Affiliates, LLC, The Long & Foster Companies, Inc., and Keller Williams Realty, Inc. The lawsuit alleges that a rule by the National Association of Realtors requiring brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property results in increased costs to sellers and violates federal antitrust law. The plaintiffs further allege that certain defendants use their agreements with franchisees to require adherence to the NAR rule, also in violation of federal antitrust law.
The Moehrl action and related litigations also allege state antitrust violations and claims against a multiple listing service (MLS) defendant rather than NAR. The plaintiffs are seeking damages and injunctive relief from the defendants. Remax has filed motions to dismiss in the Moehrl Action, Burnett Action, and Nosalek Action, which were denied by the courts.
For a prospective Remax franchisee, this information highlights the importance of understanding the legal landscape and potential liabilities associated with industry practices and regulations. It also underscores the need to stay informed about ongoing litigation and its potential impact on business operations. Franchisees should seek clarification from Remax regarding the company's strategies for defending against these claims and any potential financial or operational implications for franchisees.