Compass’ quest to pull Redfin into its case against Zillow — in which it’s seeking to block Zillow from enforcing its private listings ban — amounts to a “fishing expedition,” Redfin’s attorneys wrote in a new filing this week.
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The letter was a response to Compass’ request for a judge to force Redfin to turn over documents related to its stalled policy around private listings. Compass also sought a full and unredacted version of a $100 million rental syndication agreement between Zillow and Redfin.
Redfin asked the judge to deny the Compass request because it was filed in the wrong court, but also because it said the documents the brokerage sought were irrelevant to its case.
“Compass’s request is a fishing expedition: far from evidencing any collusion, it instead confirms [Redfin CEO Glenn] Kelman’s long-held, public position on clear cooperation,” Redfin’s attorneys wrote. “Nor, more importantly, has Compass alleged (because it cannot) that Redfin has changed its policy concerning its listings of the properties that have appeared on Compass’s website before or after the blog was published.”
A judge agreed, saying Compass should have filed its request in a court in Washington, rather than New York. The judge denied Compass’ request to compel Redfin to turn over the documents.
“Consequently, this Court lacks jurisdiction to adjudicate Plaintiff’s motion to compel, unless Plaintiff had first filed its motion in the Western District of Washington and then transferred that motion to the Southern District of New York,” Judge Jeannette Vargas wrote on Wednesday.
Compass had specifically sought complete drafts of Kelman’s April blog post announcing that the portal wouldn’t display listings unless they were shared in the multiple listing service within a day of being publicly marketed.
That policy was in line with one announced days earlier by Zillow. Inman reported exclusively that Redfin has put that policy on an indefinite hold. The company said that its acquisition by Rocket Companies was a primary reason that it had changed course on its private listings ban.
Both policies took direct aim at Compass’ quest to build a broad network of listings that are only available through Compass. Compass filed a lawsuit against Zillow in June, shortly before the portal began enforcing its policy. Compass didn’t name Redfin as a defendant in that lawsuit.
“This lawsuit is about protecting consumer choice. No one company should have the power to ban agents or listings simply because they don’t follow that company’s business model,” Compass CEO Robert Reffkin said in a statement in June. “That’s not competition. It’s coercion. Imagine if Amazon banned a seller for offering a product on their own website first. That’s what Zillow is doing in real estate. Consumers should have the right to choose how they sell their homes.”
