Court backs Sitzer Burnett settlement deals

The Eighth Circuit Court of Appeals upheld $876 million in settlements reached by the National Association of Realtors and major brokerages in the Sitzer/Burnett commissions case, dismissing every argument from the seven appellants.

The decision, issued August 19, confirms settlements finalized in January 2025 after a U.S. district court approved the agreements. The combined deals include NAR’s $418 million settlement, covering hundreds of multiple listing services, Realtor associations, and thousands of smaller brokerages and agents.

Case background

The Sitzer/Burnett case went to trial in October 2023, where a jury sided with the homeseller plaintiffs and awarded nearly $1.8 billion in damages. NAR and the brokerage defendants ultimately settled with the plaintiffs and agreed to implement industrywide changes related to commissions and buyer agreements.

The settlements were approved by a U.S. district court, which issued a final judgment in January 2025, but seven parties sought to appeal the case on multiple grounds. The objectors to the settlement included plaintiffs in related commissions cases and law professor Tanya Monestier.

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Court rejects all challenges

The three-judge panel dismissed each objection. Monestier, a vocal critic, argued the settlements were too small and wouldn’t help consumers. She also claimed the named plaintiffs couldn’t seek court orders because they failed to show ongoing harm.

The court disagreed, stating the evidence showed continuing harm to homesellers and the class. Monestier did not respond to requests for comment.

Another objection targeted the inclusion of the Real Estate Board of New York, which isn’t part of NAR. Judges ruled the claims in the REBNY case matched those in the Missouri lawsuit, justifying a nationwide class.

The panel also addressed whether homebuyers should be covered. It found several plaintiffs both bought and sold homes during the class period, and the settlement language included those claims. Judges also upheld the release of brokerage franchisees from further lawsuits, even though they didn’t contribute to the fund, calling it appropriate.

A procedural dispute involved a November 2024 fairness hearing where District Court Judge Stephen Bough required objectors to appear in person. Some appellants protested, citing hardships, but the Eighth Circuit saw no error in the district court’s decision.

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Responses from involved parties

Hagens Berman, the law firm representing the plaintiffs, called the ruling a win for consumers. Steve Berman, the firm’s managing partner, said the case proved class actions can fix systemic problems and deliver tangible benefits.

The settlements have already changed how commissions are disclosed and negotiated. While appeals delayed some changes, the court’s decision clears the way for the new rules to take full effect. Smaller brokerages, many of which had already adjusted practices, are now expected to complete compliance.

Implementation is now the priority. Brokerages must fully adopt the new rules by year’s end, including written agreements between buyers and agents. The real test will be whether these changes reduce costs or if the industry adapts to preserve traditional fee structures.

This shift follows broader trends in how markets operate. Similar adjustments have occurred in other sectors, such as live market data systems, where transparency has become a key focus.