The attorneys who scored a $1.8 billion court victory in the Sitzer/Burnett case against the National Association of Realtors (NAR) and several major brokerage firms appear to be taking a cue from the legendary Willie Sutton and are going where the money is – in this case, into Warren Buffett’s bank accounts.
According to the Wall Street Journal, the attorneys have named Berkshire Hathaway Energy in a new filing for their ongoing litigation. Berkshire Hathaway Energy owns HomeServices of America, one of the brokerages cited as defendants in the Sitzer/Burnett case, and that company is owned by Buffett’s Berkshire Hathaway (NYSE:BRK.B).
HomeServices and NAR were the only defendants in the case who did not seek settlements with the plaintiffs. Berkshire Hathway reported more than $160 billion in cash and equivalents at the end of 2023.
“What we’re trying to show is that this isn’t an isolated event in some corporate office – this goes to the top of Berkshire Hathaway,” said Michael Ketchmark, a lawyer for the plaintiffs.
Berkshire Hathaway stated in its 2023 annual report that HomeServices could eventually become burdened with up to $5.4 billion in losses from the Sitzer/Burnett case.
“HomeServices intends to vigorously appeal on multiple grounds the jury’s findings and damage award,” the company said. “The appeals process and further actions could take several years.”
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Every time a dollar flows from one hand to another someone or some entity tries to take a portion (i.e. like sales tax) without really earning it. Lawyers not only take 30-40% but they also try to force the cash to flow so they can harvest more.
I was wading in a lake last summer and when I got out there were a couple of leeches on my leg. They hadn’t earned anything either, but one had a law degree.
We need tort reform. These law firms look for cash then dream up a suit then hope to settle. These rulings are paid for by consumers in higher prices. It is nothing but extortion not justice
I personally feel that there should be a law that when an attorney brings a case to trial for damages, if they fail to prove their case then they should have to pay the same amount to the defendant that they were seeking in damages. That would certainly terminate a lot of these rediculous suits that attorney’s instigate to either settle out of court or be awarded unbelievable fees if they are successful in court. Lets face it, currently there is really no penalty at all to the attorney’s if they file a suit and then lose the verdict, only the defendant and the plaintiff really sufer damages.
Amen to attorneys paying if they loose!! They do that in some other countries.
He’s lawsuits are so ridiculous. It’s gonna end up destroying the business and they’ll get everything they wanted. We are dumb for allowing them to have our data for free. They wouldn’t be doing this if they didn’t think they could sell it themselves using our tools for free on the Internet.
Hopefully this litigation will cast a light on the lawyers fee structure and how it seems to be 30% range in successful settlements or 40%
upon appeal. How came up with that formula ? Let’s get some transparency when lawyers divide up the “spoils “ after settlement.
Was a referral paid to a law firm that sent the client to a litigating firm?
Who decides the basis for fees ?
Lawyers seem to charge about the same …is that coincidental ?
Let’s get some forensics done on the
fee structure for attorney charges !
I believe these lawyers have created something that will effort even their own
profession as they target compensation not just for the real estate industry
but also every industry based on a percentage-based rate of pay including
their own.