Eighth Circuit upholds real estate commission settlements

The U.S. Court of Appeals for the Eighth Circuit has upheld several settlements in the Gibson commission lawsuit, mirroring a recent decision to affirm the National Association of Realtors’ (NAR) settlement in the Sitzer/Burnett case. The court rejected challenges from objectors who argued that the settlements improperly released claims from homebuyers and were inadequate.

The upheld settlements involve various brokerages, including Compass, Redfin, The Real Brokerage, Realty ONE Group, At World Properties, Douglas Elliman, Engel & Völkers, HomeSmart, and United Real Estate. These defendants have agreed to implement business practice changes similar to those outlined in the NAR settlement.

Among the companies affected is HomeServices of America, a subsidiary of Berkshire Hathaway. A St. Louis appeals court recently confirmed a 2024 settlement involving HomeServices, effectively concluding a long-standing legal chapter regarding real estate commission disputes. This judicial confirmation reduces legal uncertainty for the Berkshire subsidiary, which is a significant operational division for the conglomerate.