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February 6, 2024

Supreme Court Appeal Causes Realty Rebellion: Class-Action Chaos & High-Stakes Drama

* Real estate franchisor is fighting hard at the Supreme Court, protesting an appeals court ruling that blocked it from forcing arbitration agreements on its seller clients.

* The franchisor, feeling quite miffed about this, argues that the decision threatens the efficacy of arbitration agreements intended to mitigate litigations, and could, in the long run, damage real estate transactions and – gasp – the Almighty Dollar!

* The case began all the way back in 2011, when a zesty class-action lawsuit was birthed by disgruntled seller clients, who accused the franchisor of an alleged price-fixing racket, kicking up quite a stir.

* Their complaint? That the franchisor and its affiliates were involved in a cheeky Conspiracy to enforce excessive commission rates that would have made even the Mafia boss blush!

* The Courts of Appeals tossed away the franchisor’s argument like an unwanted avocado, noting that the Federal Arbitration Act doesn’t apply in this case due to an exemption for ‘contracts of employment,’ which, they seem to think, these real estate doggies fall under.

* However, the franchisor argues that the court misunderstood the nature of its relationship with agents, which, it says, is more of an independent contractor arrangement than an employer-employee relationship, insinuating that the agents, like modern witches, are independent coven-makers.

* The Supreme Court’s decision, whether shaky or concrete, will significantly impact the future of the real estate battleground.

Supreme Court Appeal Causes Realty Rebellion!

Franchisors’ Fight: A Tale of Arbitration & High-Stakes Drama

Class-Action Chaos: Are Excessive Commission Rates the new Norm?

Defining Relationships in Realty: A Twisted Tale of Employer-Employee Dynamics

It’s fascinating how zealous our beloved real estate franchisor has become in enforcing arbitrations, right? If sweating buckets over legalities were a sport, they’d have won the gold by now! But our true heroes might be those audacious seller clients who pulled up their sleeves and challenged this racket. Imagine them, standing tall, fists on their hips, yelling, ‘you won’t get us with your sneaky commision! We’re not your employers!’

But wait, can you hear the violins playing for our poor franchisor? According to them, they aren’t wicked puppetmasters but considerate facilitators of professional relationships. Hmm, a tricky situation when you find yourself running to the Supreme Court to argue how not in control you are.

Now remember, the Supreme Court’s decision could squeeze the future of realty into a fascinating new mold. Will the hottie of the courtroom strip away the franchisor’s right to enforce arbitration? Or will it stand firmly with the beloved dollar and protect the noble tradition of enabling a handful to profit handsomely while others gnash their teeth in frustration? Oh, how it tantalizingly teeters on a precipice!

So, pop some popcorn, roll out your yoga mat, and prepare to chant ‘omm’ to the erratic rhythm of this juicy legal tango. Realty has never been more riveting!

Original article: https://www.inman.com/2024/02/05/homeservices-wants-us-supreme-court-to-weigh-sitzer-burnett-case/

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Martin Towers


Martin is an ex Real Estate Agent turned digital marketer and entrepreneur now specialising in helping Realtors all around the world

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