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Commission lawsuit settlements continued to roll in this week, in this case with a new deal from franchisor NextHome — a company that is notable for its prominent CEO, James Dwiggins, and his commentary on antitrust litigation.
NextHome CEO James Dwiggins
The NextHome settlement was publicly disclosed Wednesday via a brief court filing in a case known as Gibson. The Gibson case was filed in the immediate aftermath of last October’s jury verdict in a different but similar lawsuit — meaning Gibson is often referred to as the first “copycat” commission suit. Wednesday’s filing merely says that the parties involved have reached a deal, but does not say how much money NextHome might pay or what, if any, business practices it has promised to change.
The filing also does not include a timeline for when the deal might receive preliminary or final approval.
In those ways, the settlement is similar to the one involving Florida indie The Keyes Company, filed last week, which also was part of the Gibson case but included few details about what the defendant had agreed to do.
According to its website, NextHome has more than 600 franchises across the U.S.
However, industry observers may know the company better for Dwiggins — co-founder as well as CEO — who has been one of the most vocal commentators when it comes to commission litigation. In July, for example, Dwiggins warned fellow industry members against turning to workarounds in order to share commissions. At Inman Connect Miami in May, he argued that real estate should not attempt to cling to old models. Dwiggins has frequently appeared at industry events and in media reports offering such insights — something that many other leaders were not enthusiastic about doing.
NextHome declined to comment on the settlement.
NextHome’s settlement comes just under a month after the National Association of Realtors’ new, lawsuit-prompted rules went into effect. Among other things, the new rules bar sellers’ agents from making offers of compensation to buyers’ agents in their NAR-affiliated multiple listing services, and were the result of a settlement the trade organization announced in March.
Update: This story was updated after publication to reflect NextHome declining to comment.
