Though the National Association of Realtors is not out of the legal woods yet, the trade group does have reason to celebrate. A federal court judge on Wednesday dismissed all antitrust allegations made by REX Real Estate against NAR and Zillow.
The remaining claims in the case are all against Zillow, meaning that NAR is no longer a defendant in the case and will not have to participate if it heads to trial next month as scheduled.
In his order dismissing the claims, Judge Thomas Zilly of the U.S. District Court for the Western District of Washington wrote that the “Court concludes that REX has failed to present evidence of the conspiracy alleged in its Amended Complaint, namely, a purported agreement between NAR, Zillow, and non-party MLSs to segregate, conceal, and demote non-MLS listings on Zillow’s websites and mobile platforms.”
The antitrust claims against NAR and Zillow were dismissed with prejudice.
In the order, Zilly noted that NAR’s No-Commingling Rule was optional and that about 29% of Realtor-affiliated MLSs had not adopted the rule, without any repercussions from NAR. On its own, the rule “does not constitute direct or circumstantial evidence of an anticompetitive agreement between NAR and Zillow,” Zilly wrote.
“The undisputed evidence in this action shows that neither NAR nor its affiliated MLSs were involved in Zillow’s decision to implement the challenged two-tab display that allegedly drove REX out of business,” he added.
Zilly also pointed out the unlike other brokerage, Zillow continued to display REX’s listings.
“The evidence demonstrates that instead of precluding REX’s listings entirely, like websites such as Redfin did … Zillow expended significant time and resources to ensure that REX’s and other non-MLS listings would remain on its platforms, albeit under a separate tab,” the order reads.
Originally filed by REX in March 2021, the lawsuit alleges that changes made to Zillow’s website “unfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.”
Two months prior, in January 2021, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service (MLS) practices.
In January 2022, NAR filed a countersuit claiming that REX uses false advertising and misleading claims to deceive consumers in violation of the Lanham Act, but the countersuit was dismissed in late April 2022.
In mid-May 2022, REX ceased its brokerage operations.
A little over a year later, in mid-June 2023, the three parties involved in the suit, all filed motions for summary judgment on at least some issues, if not the entire lawsuit.
Earlier this month, Zilly ruled on other claims in the lawsuit, allowing three of REX’s claims against Zillow to head to trial: a false advertising claim under the Lanham Act, a claim for unfair or deceptive trade practices under Washington’s Consumer Protection Act (CPA) and a claim alleging defamation.
Although Zillow’s legal battle against REX is not over, the company was pleased with Wednesday’s ruling.
“Today’s ruling is a significant victory for Zillow in this case. The court agreed REX’s antitrust claim was without merit and lacked any evidence to back it up,” Will Lemke, Zillow’s manager of corporate communications, wrote in an email. “This ruling affirms Zillow’s business decisions were squarely focused on improving the data on our website for consumers. With REX’s central argument tossed from this case, we believe the public now sees this case for what it is: REX seized upon another company’s website design change to hide its own business failings.”
The lawsuit is scheduled to head to trial on September 18. NAR and attorney for REX did not return a request for comment by the time of publication.
The chasm runs the full length of the condominium complex, from the shuttered tennis court to the shuttered pool. Measuring more than 500 feet long and 20 feet wide, the gash divides the complex in two, its weed-choked perimeter cordoned off with chain-link fencing. A grimy trickle of water oozes along the chasm’s concrete floor a dozen feet below, like some ugly open wound that just won’t heal.
Welcome to Coyote Village, a 70-unit condo complex in suburban La Habra whose residents have been living out a homeowner’s nightmare. Over the last four years, portions of the tree-lined greenbelt that once shaded the complex have violently collapsed into a concrete maw below. That’s because, unbeknownst to most residents, the greenbelt wasn’t built on solid earth. Running beneath it is a cavernous flood channel that decades ago was sealed with a concrete lid then topped with mounds of soil and landscaped with pine trees.
The first collapse of the concealed lid came in January 2019, when a section of the greenbelt near the tennis court caved in, exposing the flood channel below. The second implosion came in March, when heavy winter rains saturated the greenbelt and the concrete lid couldn’t handle the weight of the soggy soil and towering pines. This time, the collapse took out a huge swath of the greenbelt near the community pool.
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Most residents were shocked to learn that their complex was built on top of a private canal that plugs into Orange County’s larger Imperial Channel, which routes storm water out of La Habra, Brea and Fullerton. It stood as the only covered private channel in the county’s 380-mile public storm drain system.
And that “private” designation is where the residents’ encountered another chasm, in the form of a years-long legal battle.
After the 2019 collapse, the county did some cleanup work at the site and provided security fencing around the exposed portion of the channel. Following the March 15 collapse, La Habra brought in construction crews to excavate the channel, which at that point was clogged with dirt, tree limbs and concrete that the city worried would create a damming effect in the broader drainage system during future storms.
But the city’s work stopped there.
La Habra officials have argued since the first collapse that the channel belongs to the complex. And worse, that the channel’s concrete lid had been improperly covered with a breadth of landscaping that violated what had been approved in the city permitting process. According to the city, the homeowners association that represents Coyote Village is responsible for repairing and rebuilding the channel.
The Coyote Village Homeowners Assn. has challenged that stance in a running legal battle, started in 2020, contending the channel is integral to a larger public system and was damaged by public use without just compensation. It has sued the city, the county and the county flood control district, among others, for relief.
“While the conduit runs through the HOA property, the water is public,” said John Peterson, an attorney representing the homeowners group. “The public needs to share in the responsibilities.”
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State Sen. Josh Newman, a Democrat whose district encompasses La Habra, tried to broker a solution last summer and was able to secure $8.5 million in state funding to repair the flood channel. “The residents were wholly unprepared and financially unequipped to deal with this,” Newman said. “I was happy to secure those funds.”
But a year later, that money remains unspent.
La Habra initially questioned the propriety of expenditure, asking the state Atty. General’s Office if the allocation could be considered an improper gift of public funds. The state’s Legislative Counsel determined it was not. In the months since, the city and homeowners association have haggled over who would run the major construction project, with the HOA concerned it does not have the expertise and city officials reluctant to take charge of repairs on a canal they consider private property.
Residents have watched in a mix of frustration and resignation as the saga has unfolded.
Jan Duncan, an HOA board member, said she put her Coyote Village loft on the market in June and received six offers the first week. Then came questions about the flood channel and why it hasn’t been fixed in four years. In short order, every offer was rescinded.
“I cannot give buyers anything in writing to guarantee that this is going to be resolved,” she said. “Without that, they’re uncomfortable. I can’t blame them.”
Justin Marinello is among the parents in the complex who worry about the safety risk the exposed channel poses for children. His condo looks out on the gritty channel and his 4-year-old son had a front-row view of the city’s excavation work after the March collapse.
“My son enjoyed watching the construction because he likes giant Tonka toys playing with dirt,” Marinello said. “But it would be nice to be able to open the door up and just have some grass for him to run on.”
On the other side of the chasm, Lizeth Ruiz knew about the exposed channel when she moved to her condo in 2019 but figured it would be quickly repaired. Instead, she finds herself fending off mosquitoes that breed in the canal’s dingy water. “Now, I keep everything closed and have to be more mindful about wearing pants instead of shorts,” Ruiz said, holding her newborn baby tight.
As the summer heat soars, the concrete channel is lined with dry weeds that rise taller than the 6-foot safety fencing. The channel itself is defaced with graffiti. Residents continue to pay $390 in monthly homeowners fees even though the channel’s collapse has sidelined amenities like the tennis court and pool.
It marks a wrenching chapter in the life of a property with an eccentric history.
In mid-century La Habra, a ranch owner flooded a portion of the area to create a lake and islet, deemed “Monkey Island,” where he let feral monkeys roam free. He also eyed the land for a track that would host ostrich races. At the time, ostrich farms were a popular tourist attraction in Orange County.
Later, the lake was drained and La Habra city leaders opted to go a development direction they considered more forward-thinking, erecting a shopping plaza and post office on the site.
In 1978, developer Loren Hendrix proposed an adjacent 70-unit condominium complex, when such communities were still novel in Orange County as an affordable alternative to single-family homes. Without yards to maintain, he envisioned residents being able to stroll along a landscaped creek — a dressed-up version of the flood control channel that crossed the property — as a key selling point.
But Hendrix faced stiff questions from city staff about how he planned to protect children from hazards posed by the channel-turned-creek. Archival records show the county flood control district rejected Hendrix’s creek design. The district recommended design changes Hendrix considered too costly. Instead, the complex would host an enclosed flood channel masked with landscaping.
La Habra City Council members approved the development in April 1979 on the condition that Hendrix’s design be approved by the city’s chief building inspector and the county flood control district. A year later, the building inspector wrote that the complex was “substantially in compliance” with applicable codes. It’s not clear in county records whether the flood control district ever approved the design.
In any case, the condo development and greenbelt were built. And for 40 years, storm runoff flowed through the underground channel unbeknownst to most residents until the 2019 collapse.
La Habra city officials say the cave-ins are more about what was built on top of the channel than what lies below.
Deputy City Atty. Gary Kranker contends that at the time of the 2019 collapse the soil piled above the channel ran 9 feet deep — 6 feet more than the greenbelt design approved by the city — and that the pine trees that by then stood 80 feet tall contributed to the channel lid’s failure.
“It’s the obligation of the individual constructing the channel, or in this case, the channel roof, to make sure it was done properly,” he said. “Based upon the calculations that we have, it would have been done properly had it only had 3 feet of soil.”
And he faults the homeowners association for failing to take aggressive action to alleviate the risks between the first cave-in and the implosion in March. “To be quite candid, [they] did not do anything to try and alleviate this condition,” he said. “They could have hired someone to remove the soil, one wheelbarrow at a time.”
Last year, the homeowners association sued Hendrix, the complex developer, for fraud. The complaint alleged that he concealed the channel and any maintenance responsibilities from the association so he could sell condos “more quickly and at higher prices.” Peterson, the association’s attorney, said a settlement agreement compels Hendrix to find the insurance policies that covered the development and assign the rights over to the association.
Hendrix did not respond to requests for comment through his attorney.
Last week, representatives for the city and homeowners association said they were closing in on an agreement for moving forward with repairs that would free up the $8.5 million in state funding. Once a resolution is reached, the canal’s reconstruction is expected to take at least a year.
Roma Damo, who has lived at Coyote Village for 35 years, doesn’t see much light at the end of the tunnel — or flood channel, in her case.
“I’m seriously thinking about renting this condo out and getting myself an apartment,” said Damo, 88, eyeing the degraded channel outside her condo windows. “I don’t want to spend the rest of my life here looking at this.”
Things are continuing to heat up in Zillow Group’s legal battle with discount brokerage REX Homes, as the September 18, 2023, trial date looms ever closer.
On Friday, Judge Thomas Zilly, the U.S. District Court judge in Seattle overseeing the lawsuit, issued a minute order denying in part and deferring in part Zillow’s motion for summary judgement in the case.
In mid-June, the three parties involved in the suit, Zillow, REX and the National Association of Realtors (NAR), all filed motions for summary judgment on at least some issues, if not the entire lawsuit.
Three of REX’s claims Zillow filed motions for summary judgement on were denied by Zilly, while Zillow’s motion for summary judgement on REX’s antitrust claim was deferred.
Originally filed by REX in March 2021, the lawsuit alleges that changes made to Zillow’s website “unfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.”
Two months prior, in January 2021, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service (MLS) practices.
In January 2022, NAR filed a countersuit claiming that REX uses false advertising and misleading claims to deceive consumers in violation of the Lanham Act, but the countersuit was dismissed in late April 2022.
In mid-May 2022, REX ceased its brokerage operations.
Since then, REX, Zillow and NAR have gone back and forth with filing various motions to compel during the discovery phase of the trial.
In his minute order filed on Friday, Zilly denied Zillow’s motion for summary judgement on REX’s Lanham Act claim, REX’s claim for unfair and deceptive trade practices and REX’s defamation claim.
In regards to REX’s Lanham Act claim, Zillow contended that REX cannot prove that the allegedly false statements in question were made in “commercial advertising or promotion,” and that REX cannot establish injury or damages. However, Zilly felt that Zillow had not demonstrated that REX is unable to satisfy the test for commercial advertising or promotion.
In its motion for summary judgement, Zillow also claimed that REX’s unfair or deceptive trade practices claim should fail if the Lanham Act claim fails. However, according to Zilly’s order, REX has pleaded “both the “unfair” and “deceptive” prongs” of a consumer protection act (CPA) violation.
“Zillow has not demonstrated that it is entitled to judgment as a matter of law with respect to REX’s CPA claim,” Zilly wrote.
Finally, Zillow’s motion for summary judgement on REX’s defamation claim also was also denied. In the motion, Zillow argued that REX’s defamation claim fails as a matter of law as REX cannot prove damages, however, during oral arguments REX noted that it only seeks nominal damages. Zilly denied the motion as he felt that given the record on this claim, “the Court cannot determine as a matter of law whether REX can prove the actual malice necessary to be entitled to nominal or presumed damages.”
NAR and REX also filed motions for summary judgement on the case in June, but rulings have not yet been issued.
“We continue to maintain the claims made in REX’s lawsuit are without merit. REX chose to use Zillow’s services to advertise their for-sale properties on Zillow – for free. Zillow has consistently advocated for outdated rules to be changed to allow the broader display of all listings on all platforms, including For Sale By Owner and listings from other companies like REX. Zillow’s business decisions were squarely focused on improving the data on our site and the experience for customers,” Will Lemke, Zillow’s corporate communications manager, wrote in an email. “We hope the court sees this suit for what it is: REX seized upon Zillow’s website design change to hide its own business failings.”
NAR also believes its side will succeed in the lawsuit.
“While NAR was not a party in Zillow’s filing, we still believe the law is on our side and we remain confident we will ultimately prevail,” Mantill Williams, NAR’s vice president of communications, wrote in an email. “NAR guidelines and local broker marketplaces create highly competitive markets, empower small businesses and ensure equitable home ownership opportunities, superior customer service and greater cost options for all buyers and sellers”
Lawyers for REX did not offer comment on the ruling at this time.
Last April, we shared our optimistic opinions regarding American housing markets. Now, nearly five months later, real estate expert Kelly Skeval joins us as we ask once again: bubble or boom? Listen in and learn where we stand now and whether or not we’re still investing in real estate. We also offer recommendations for real estate agents and investors as we close in on the fourth quarter of 2021. And as always, we cover recent real estate news, including updates on the ongoing legal battle between the NAR and the DOJ, the possibility of another nationwide eviction moratorium, and more.
Listen to today’s show and learn:
What’s new with New York real estate [1:40]
The problem with hardship-declaration forms [2:53]
Lessons learned as a landlord in 2021 [4:02]
Elizabeth Warren’s bill to enact another nationwide eviction moratorium [8:12]
Real estate boom or bubble? [11:37]
Buyer clients’ biggest reasons for purchasing homes right now [15:48]
The typical credit score of 2021’s borrowers [16:51]
Mortgage demand surges as inventory increases [26:47]
NAR vs. the DOJ [31:43]
The fight for public access to the MLS [35:18]
The mega mansion that no one wants [36:59]
Kelly’s meet ups for prospective real estate investors [38:18]
Boom or bubble? We want your feedback! [43:35]
Related Links and Resources:
Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Insurance is not the sexiest topic when it comes to, well, anything.
The truth is insurance is there to protect us from an event that our finances are not able to handle.
While planning for bad news is not something any of us enjoys, having proper policies in place is a necessary part of protecting our families and our finances.
Instead of being afraid to think about the future we need to empower ourselves by planning for worst case scenarios. To help you get the best information available I have put together guides for several types of insurance that are offered by top rated insurance companies.
Life
The sudden loss of a loved one can be devastating to a family. What can compound that loss is losing the income that person has been providing and having no plan in place to replace that income. With proper life insurance you can make sure that you and your loved ones are financially prepared for a worst case scenario.
A good life insurance policy is a key to any financial plan so learn more about your options and the importance of life insurance.
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Auto
Every state require you to purchase auto insurance. The problem people run into is that we don’t exactly know how much insurance is enough or what type of policy to get. With each state having different rules and a jumble terms like deductibles, premiums, uninsured drivers, collision, comprehensive, etc. it is difficult to know exactly what you need in a policy.
Get a better grasp on all the details of a car insurance policy and get detailed information about the coverage need for your specific state from our guide for auto insurance.
Homeowner’s
If you buy a house, you’ll likely want (need) homeowner’s insurance. Especially if you buy a home by using a mortgage, the lender will want you to have coverage to protect the investment.
As with several other types of insurance, you’ll need to understand exactly how much you’ll need, what type of policy you might require, and the different nuances with deductibles, maximums, and more.
Medicare
Seniors and those on disability have great difficulty in getting a health insurance policy. Because of this the government set up Medicare as a means of providing coverage to these individuals. What is frustrating is that Medicare is not complete coverage and the terminology is difficult to understand.
Between parts, plans, and advantage coverage most seniors get very frustrated with navigation the Medicare landscape. To help you with getting through the tough transition I put together a guide to Medicare.
Health
With the passage of the Affordable Care Act, health insurance has gotten even more difficult to understand. The good news is that the basic principles are still the same. The bad news is that how we pay for health insurance has gotten more complicated. Whether you have an employer plan or are purchasing your policy as an individual you can get a better grasp on your options for health insurance.
Disability
There was a time when I didn’t think disability was worth the cost, but the statistics for being out of work for an extended period of time are eye-opening and will quickly push you to get this type of coverage. As with all types of insurance you need to learn the terminology before you can make the best decision for your needs. See our detailed guide to disability insurance.
Burial
Burial or final expense insurance is designed specifically to take care of the expenses of your funeral and any expenses that may pop-up as a result of your untimely death. Because it can be purchased in various different ways it is slightly different than Life Insurance. Get a better grasp in our guide for burial insurance.
Business
If you own a business, you know you have a lot at stake, especially if you’re the owner and/or key operator. If something were to happen where your business would be dropped into a legal battle, would you be prepared financially?
This is why business insurance is so important; mistakes can happen, but a business insurance policy can help you alleviate the worries of having to close your business down because of an at-fault hazard, or otherwise. It’s a safe investment for your business, and your future income.
Other Types
Surprisingly, all of those kinds of insurance above aren’t all! There are even more.
Some of these policies might be new to you. You might be surprised to see you’re missing some coverage.
Travel
If you’ve got the travel bug, you might consider putting some cash into travel insurance. Travel insurance can cover A LOT of unexpected costs, like medical bills while you’re traveling, lost luggage, delayed luggage, travel delay costs, and much more.
If you want to see the world, you should see a travel insurance agent first.
Compare Travel Insurance Quotes
Pet
Pets are a part of our family, why shouldn’t they be insured like one of them? Think of pet insurance as a health insurance policy for your furry friend (don’t worry, they aren’t expensive as a health insurance plan).
LTC
Around 70 percent of people over the age of 65 are going to need some long-term care. That specialized assistance can be expensive. This is where long-term care insurance policies bring value. If you or someone you love needs in-home assistance or has to go to a nursing home, you won’t be responsible for paying all those bills yourself.
Renters
Renters insurance is an affordable way to protect all of your belongings from theft or natural disasters. Because renters insurance doesn’t have to cover the physical building itself, it’s much more affordable than homeowners insurance. That’s another benefit of renting instead of owning.
Umbrella
No, this policy doesn’t give you insurance ON your umbrella. Umbrella insurance is designed to fill in the gaps and give additional coverage beyond your standard policies. These plans protect you against major lawsuits and give you additional liability.
Boat
Just imagine hitting the water on your boat. Wind running through your hair and enjoying the sun. What happens if something happens to your boat and you’re stuck on shore? Don’t get sunk paying for those repair bills yourself.
RV
There are few things better than hitting the open road. More and more people are selling their homes and packing everything into an RV. If you’re one of them (or you just like to see the country in your RV), you need to get the same protection you give your home. Your RV is your home on wheels.
Motorcycle
Just because motorcycles have two fewer wheels doesn’t mean they need any less coverage. Motorcycles give you freedom and adrenaline you won’t get with a minivan. If you’re in an accident, don’t get stuck riding around on four wheels. Motorcycle insurance can get you back on that bike.
LGBTQ+ people still face discrimination and economic inequality. These policies could help.
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-Andrew Keshner
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
A Movement representative did not return a request for comments.
A spokesperson for loanDepot said, “Inducing individuals to breach contractual prohibitions against employee solicitation and misuse of confidential information in order to steal business and customer relationships crosses the line into unfair competition, and we will continue to vigorously protect our interests.”
The California-based lender claims employees in Virginia, Pennsylvania, and Florida left the company to join Movement after an “orchestrated” move and “all-expenses-paid recruiting trips,” including to Movement’s headquarters in South Carolina. Additional Maryland, Washington, D.C., and Delaware employees also transitioned to the retail competitor.
In some cases, Movement offered a $125,000 signing bonus to loanDepot loan originators to come to the company, the lawsuit claims.
“To date, several loanDepot branches have been effectively gutted and loanDepot has lost at least 25 employees at the hand of Movement’s predatory raiding,” the lawsuit states.
The lawsuit follows: “In the weeks leading to their departures, the former employees accessed and misappropriated confidential and trade secret documents about loanDepot’s business, its employees, and its clients; information that, in the hands of Movement, was used to convert customers to Movement and away from loanDepot.”
loanDepot has ongoing arbitrations with certain of the former employees.
The lender seeks damages and permanent injunctive relief against Movement for misappropriation of trade secrets, aiding and abetting breaches of fiduciary duty, unfair competition, unjust enrichment, unfair trade practices, and tortious interference with loanDepot’s contracts and prospective economic advantage.
That’s not the Orange County, California-based lender’s only poaching legal battle.
Since April 2022, the company filed three lawsuits against CrossCountry Mortgage in New York, California and Illinois.
In early June, a judge in the N.Y. case ruled in favor of loanDepot in a preliminary injunction by prohibiting CrossCountry and employees who switched companies from using data they obtained from their prior employer. It follows a decision from a judge in the Chicago lawsuit. However, according to the judge, as loanDepot has not shown an “actual and imminent” risk of irreparable harm, its request for a preliminary injunction against the solicitation of loanDepot’s employees was denied. The judge mentions “loanDepot is likely to succeed on the merits of its Defend Trade Secrets Act claim.”
A federal judge gave an early victory to loanDepot this month in a poaching case against CrossCountry Mortgage, in the latest legal battle between the industry giants.
LoanDepot sued its rival last July for raiding staff responsible for 81% of its annual New York-area production, and taking with it confidential company and client data. U.S. District Judge Lorna G. Schofield last week ordered a preliminary injunction barring CrossCountry and two dozen of its employees, who are named defendants, from using the loanDepot data they obtained.
“LoanDepot will suffer immediate, substantial, and irreparable harm should the following preliminary injunction order not be entered,” she wrote in an order last week. “… LoanDepot is likely to succeed on the merits of its Defend Trade Secrets Act claim against all Defendants.”
Schofield, however, didn’t approve loanDepot’s request to bar CrossCountry from soliciting its employees, writing that loanDepot didn’t show a “threat of irreparable harm” to support an injunction. The companies will participate in a mediation and must update the court by July 14, a separate order said.
Both companies declined to comment this week. The case in the U.S. District Court for the Southern District of New York remains pending. It mirrors loanDepot’s poaching suit against CrossCountry in Illinois, where a similar injunction was ordered last December.
The Cleveland, Ohio-based lender has fended off numerous poaching suits from other firms, including a dismissal of a raiding complaint from Guild Mortgage. A spate of poaching lawsuits between mortgage competitors has subsided this year following mass layoffs and a market slowdown.
LoanDepot initially accused CrossCountry of poaching 32 employees from branches in Brooklyn, Manhattan and Fishkill, New York. The Irvine, California-based lender and servicer claims departed employees had since closed at least 60 loans at CrossCountry using confidential information they took with them.
The amount of loanDepot data covered in the injunction is unknown, and a filing detailing the information is under seal. An amended complaint cites at least 10,000 documents copied by two employees alone, and describes files such as mortgage applications, pre-approvals and company compensation and sales data.
Schofield ordered CrossCountry to not contact any customer in the loanDepot information, although the ruling doesn’t apply to CrossCountry’s applicants and borrowers who closed a loan between December 2021 and September 15, 2022.
CrossCountry is also under fire from a former loan salesperson, who accuses the company of failing to pay employees when origination volume fell. That lawsuit remains pending in an Ohio federal court.
The publicly traded LoanDepot has undertaken a massive downsizing effort in the past year, including letting thousands of employees go. The industry’s third-largest originator recorded a $91.7 million net loss in the first quarter, and earlier this month announced an executive shakeup.
Delta Air Lines was perhaps too bullish on Texas. Just six weeks after Deltaâs big announcement about expanding its presence in Dallas, the airline quietly filed plans over the weekend to scrap one of its newest routes less than three months before it was supposed to start. Specifically, the carrier wonât launch the new twice-daily â¦