South Carolina Lawsuit Update
As you may know, since the jury verdict in the Sitzer-Burnett case in Missouri, dozens of new lawsuits were filed all across the country, including one commission lawsuit in South Carolina in November last year. The NAR legal team often refers to these lawsuits occurring across the country as "copycat lawsuits" which are "copying" the same claims made in the Missouri case.
The plaintiff attorneys that filed the South Carolina case in November filed a new lawsuit on April 11, 2024 in the same Spartanburg court, naming dozens of South Carolina real estate firms as defendants. These defendants received official notice of this new lawsuit (service) last week.
If you are a SCR member and served in this lawsuit, please contact your E&O insurance carrier and your attorney immediately. Also, please contact the legal hotline by emailing: Byron
You and your attorney can analyze your insurance policies for coverage and exclusions as well as notice requirements.
These copycat lawsuits underline the importance of the settlement NAR reached in the Sitzer-Burnett case. The plaintiffs in that case have filed a motion for preliminary approval (April 19, 2024) which sets in motion the process which will lead to final approval later this year. The settlement provides protection for all the covered members of the agreement and importantly will provide a defense to most of the defendants in these copycat lawsuits and any future copycat lawsuits that could be filed.
The National Association of REALTORS® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
Posted by: Byron King on 04/22/24 (This information is only accurate as of 04/22/24. You must contact SCR for updates and changes to this information after 04/22/24 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.