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A trial with the potential to shake up the real estate industry got officially underway Tuesday with opening statements from each side and testimony from heavy hitters Keller Williams co-founder Gary Keller, HomeServices of America CEO Gino Belfari and National Association of Realtors CEO Bob Goldberg.
In their opening statements, each side had the job of educating a nine-person jury — some homeowners, some not — on the ins and outs of the real estate industry. At the same time, they had to try to convince them of the merits or the evils of a NAR policy known as the Participation Rule, which requires listing brokers to make an offer of compensation to buyer brokers in order to submit a listing to a Realtor-affiliated multiple listing service.
Plaintiffs’ attorney Michael Ketchmark, of Ketchmark and McCreight, kicked off opening statements.
“This is a refund case,” Ketchmark told a room of about 100 people.
The plaintiffs want the defendants to “return the money” they believe was unlawfully taken as a result of the alleged conspiracy between the defendants. The number of homes sold during the relevant time period was 265,297, and the homesellers paid an average of $6,700 to the buyer’s agent in the sales, adding up to $1.78 billion in damages, according to Ketchmark.
“It’s about letting the free market decide,” Ketchmark said. “Why is this a mandatory rule? If it’s so good, make it voluntary. Don’t put it in the MLS where everyone can see if it’s being followed.”
Ketchmark homed in on deposition testimony from Keller, whose remarks Ketchmark called “brazen.”
Ketchmark noted that Keller had…