Compass controversies

Company response

• Denial — Realogy

  In a statement, Realogy denied Compass’ accusation

Source excerpt

• Filed on Friday in U.S. District Court for the Central District of California, the complaint claims CRMLS imposes fines of up to $2,500 on real estate agents who follow a client’s lawful instructions to publicly market a property without placing it in CRMLS.

• Compass International Holdings has filed an antitrust lawsuit against California Regional Multiple Listing Service (CRMLS), alleging that rules at the nation’s second-largest MLS unlawfully restrict how homeowners and their agents can publicly market properties outside the MLS.

• Compass argues that these requirements violate federal antitrust laws by interfering with its exclusive "See It First" marketing program.

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• Last week, the real estate conglomerate filed a lawsuit against current REMAX President Alex Vidal in the Delaware Court of Chancery, claiming that his move to violated his noncompete agreement as president of Compass brand Real REMAX GroupERA Real Estate.

• Compass and ERA are asking the court to enforce the terms of Vidal’s noncompete agreements. Additionally, the plaintiffs are asking for preliminary and permanent injunctions blocking Vidal “from serving as President of, or otherwise providing services to, REMAX or any other Competing Business in violation of the Non-Competition Covenant for a one year period.”

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• OneKey MLS, Long Island's multiple listing service, joined a lawsuit against real estate brokerage Compass this week, seeking a judgment to uphold its policy barring public marketing of private listings.

• OneKey MLS joined a lawsuit Tuesday filed by the California Regional MLS earlier this month after both listing services received letters from Compass that threatened litigation over their policies.

• The brokerage has alleged the listing services have engaged in anticompetitive behavior by limiting how sellers can market their homes.

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• The complaint, which seeks class-action status, demands $10 million in damages and reimbursement for unpaid commission and expenses.

• In a lawsuit filed in California last week, J. Gregory Maffei alleged Compass utilizes “unfair, unlawful and fraudulent business practices” designed to gain market share by recruiting agents with an “empty promise.”

Company response

• Denial — Compass

  A Compass spokesperson called the allegations “clearly opportunistic and entirely without merit.”

Source excerpt

• A Compass spokesperson called the allegations “clearly opportunistic and entirely without merit.”

• Christie’s also alleged that its former agents took confidential information with them in the form of both listings and “pricing and pricing strategy,” which will give them the ability to “unfairly” win business from the firm’s existing and future clients.

• The complaint, filed by a Christie’s International Real Estate affiliate based in Ridgewood, New Jersey, accuses Compass of soliciting a team of four agents and unlawfully encouraging them to breach their existing contracts.

Company response

• Denial — Compass

  In the consent order both Compass and Hornung denied any wrongdoing.

Source excerpt

• In the consent order both Compass and Hornung denied any wrongdoing.

• In a March 23 amended complaint, Pittsburgh-based Howard Hanna alleged New York City-based Compass aided and abetted three former Howard Hanna agents — Michael Hornung, Jennifer Crouse and Leah George — to breach non-compete, non-solicitation and confidentiality provisions in the agents’ contracts with Howard Hanna and steal the brokerage’s trade secrets in order to compete unfairly and make itself look more impressive.

• The complaint alleges civil conspiracy, unfair competition and tortious interference with actual and prospective business advantages and economic relations against all defendants; unjust enrichment and tortious interference with contractual relations against Compass for allegedly inducing the agents to breach their contracts with Howard Hanna; actual or threatened misappropriation of trade secrets against Hornung and Compass;

Source excerpt

• The brokerage alleges in a new lawsuit that REBNY has conspired with Douglas Elliman and the Corcoran Group to “thwart” its business in New York City.

• The complaint was filed in federal court for the Southern District of New York Friday afternoon.

• Compass filed an antitrust lawsuit Friday against the Real Estate Board of New York (REBNY), accusing the organization of conspiring with two brokerages to carry out an “anticompetitive scheme” meant to “smother” the newer company.

Company response

• Apology — Compass

  "The quality and quantity of some food parcels fell short of our usual high standards," said Compass

• Investigation — Compass

  Compass investigated the meals

• Remediation — Compass

  Compass investigated the meals and said it had now "taken several corrective measures".

Source excerpt

• "The quality and quantity of some food parcels fell short of our usual high standards," said Compass, which owns Chartwells, the school meal supplier.

• They include improved supply chain processes, additional guidance and resources for workers, and stronger quality assurance checks.

• The company behind the controversial free school meals that sparked an outcry in January has apologised again.

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• In a lawsuit filed Tuesday, landlord Stuart Venner said the residential brokerage used the pandemic to ask for rent relief — and ultimately walk away from its office — at 384 Atlantic Avenue in Boerum Hill.