Robert Friedman, a plaintiff in a commission lawsuit, has filed a petition for a rehearing after his appeal challenging the approval of settlements in the Sitzer/Burnett and Gibson cases was denied. The Eight Circuit Court of Appeals had previously reaffirmed the final approval of the National Association of Realtors’ (NAR) settlement in the Sitzer/Burnett suit and several settlements by brokerage defendants in the Gibson lawsuit.
Friedman, whose own commission lawsuit journey began in 2023 against the Real Estate Board of New York (REBNY), alleged a conspiracy resulting in inflated agent commissions. He argued in his appeal that this conspiracy with REBNY was distinct and unrelated to the alleged conspiracies in the Gibson and Sitzer/Burnett suits, particularly because REBNY is not affiliated with NAR and operates under its own rules.
The appeals court disagreed with Friedman's reasoning, upholding the settlements. In his request for a rehearing, Friedman asserts that the court applied the wrong legal standard in reviewing his objections and should not have deferred to the lower court's decision. He also reiterated that REBNY should not be included in a settlement tied to NAR's rules due to their lack of affiliation.
If Friedman's petition for a rehearing is granted and he is successful, his claims against REBNY could be litigated separately. He is currently the only objector to have filed such a petition. Other appellants in the Gibson suit have until later this month to file their own petitions for a rehearing.
