Weekly Real Estate News
Summary
The Eighth Circuit affirmed the Sitzer/Burnett settlement on Aug. 19 and denied remaining rehearing efforts Sept. 24; the appellate proceedings are now moving into the mandate and potential Supreme Court review stage.
The Eighth U.S. Circuit Court of Appeals issued its mandate Friday in the appeals challenging the National Association of Realtors’ Sitzer/Burnett settlement, formally concluding proceedings in the appellate court after objectors failed to win rehearing.
The Oct. 2 mandate follows the court’s Aug. 19 opinion affirming final approval of the nationwide settlement. The three-judge panel rejected seven challenges to the deal, which includes NAR’s $418 million payment and major practice changes governing broker compensation.
Rehearing efforts failed
After the August ruling, objectors including Monty March and Robert Friedman sought panel rehearing and rehearing by the full Eighth Circuit. The court denied those requests Sept. 24. Issuance of the mandate is the procedural step that returns jurisdiction to the district court and puts the appellate judgment into effect.
The mandate does not prevent an objector from asking the U.S. Supreme Court to review the case. But absent Supreme Court intervention, the Eighth Circuit’s decision upholding the settlement now stands as the controlling appellate judgment.
Settlement changed residential brokerage practices
The settlement resolved claims arising from litigation over broker commissions and created nationwide practice changes that took effect in 2024. Among them, offers of buyer-broker compensation were removed from NAR-affiliated MLSs, buyer agents were required to enter written agreements with buyers before touring homes, and brokers were required to make clear that commissions are negotiable.
The appellate court’s August opinion said the district court did not abuse its discretion in approving the settlement as fair, reasonable and adequate. The court also rejected arguments involving standing, the scope of released claims, the settlement class and objections tied to separate New York claims involving the Real Estate Board of New York.
The broader commission litigation has produced more than $1 billion in settlements involving NAR, HomeServices and numerous brokerage defendants.
Another appellate chapter closes
The Oct. 2 mandate is significant because it ends the Eighth Circuit phase of seven appeals from the final approval order. It follows other recent appellate decisions rejecting challenges to related commission settlements.
WRE News has covered the commission litigation since the original Sitzer/Burnett verdict and the subsequent changes across the brokerage industry. The latest mandate does not create new practice rules, but it substantially narrows the remaining legal path for opponents seeking to undo the NAR settlement.
