Overview of Crye-Leike’s Sales Volume

Crye-Leike, a prominent player in the real estate sector, reported approximately $7 billion in sales volume for the year 2022, a figure that could keep it from participating in ongoing legal settlements. This substantial volume has prompted discussions about the firm’s classification among various entities involved in a current lawsuit.

Company Structure and Legal Implications

The organization is essentially grouped under six distinct divisions: Crye-Leike Inc., Crye-Leike of Arkansas, Crye-Leike of Mississippi, Crye-Leike of Nashville, Crye-Leike South, and Adaro Realty, all of which are under the ownership of Harold Crye. The argument presented by Crye is that these operations function independently, each with its own management and accounting systems, which is pivotal for their legal standing.

Related Legal Proceedings

The lawsuits involving Crye-Leike are linked to the Gibson commission lawsuit, closely mirroring the contentious Sitzer/Burnett case. Both legal challenges assert that the National Association of Realtors (NAR) and various brokerage firms conspired to artificially raise buyer agent commission rates. These cases have been initiated in Missouri and share common plaintiff concerns.

Settlements and Pending Cases

Notably, the Gibson lawsuit features a larger number of defendants compared to Sitzer/Burnett. Among them are Weichert and eXp, which have reached settlements in a similar case in Georgia, amounting to $8.5 million and $34 million, respectively. The outcomes of these settlements may influence the proceedings in the Gibson case as well.

Judicial Oversight and Conflict of Interest Claims

Judge Stephen Bough, who has presided over both the Sitzer/Burnett and the current Gibson lawsuits, is facing allegations of a conflict of interest. The claims stem from a donation made by Matthew Dameron, a plaintiffs’ attorney in both cases, to Andrea Bough, who is the judge’s wife and a candidate for the Kansas City, Missouri City Council.

Howard Hanna Real Estate Services is actively arguing for Judge Bough’s recusal, referencing his prior willingness to step down from cases involving similar donation issues, thus raising concerns about impartiality in the ongoing litigation.