FDD Items 3 & 4 · 2026 filing

Christie’s International Real Estate litigation history

What Christie’s International Real Estate disclosed about lawsuits, arbitrations and bankruptcy in the 2026 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 14; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Six antitrust putative class actions (real estate commission/listing practices, several settled via Parent/@properties/Compass nationwide settlements) plus six other pending actions including broker-related tort suits, an Anywhere-Compass merger shareholder litigation ($450,000 settlement), Batton II antitrust case, and a Zillow v. Compass/MRED antitrust suit.

Item 3 (litigation) · 14 matters disclosed · 11 pending listed

Litigation cases

The franchisor

Pending (1)

Stuart v. HK Lane Palm Desert, Inc.
pending
filed 2018 · Sup. Ct. Cal. · PSC-1804352
“… Case No. PSC-1804352 (Sup. Ct. Cal. filed Jul. 23, 2018). Bruce F. Stuart, Trustee of the Bruce F. Stuart Trust Dated May 21, 1996, filed suit against Christie’s International Real Estate’s affiliate HK Lane Palm Desert, Inc., as well as Christie’s International Real Estate for breach of fiduciary duty, professional negligence, fraudulent misrepresentation”Page 15 of the 2026 FDD, Item 3
Outcome: “The parties have entered into a settlement agreement which is pending approval from the bankruptcy court due to HK Lane Palm Desert, Inc.’s ongoing bankruptcy.”

Concluded (1)

Friedman v. The Real Estate Board of New York, Inc. et al
settled
filed 2023 · S.D.N.Y. (originally E.D.N.Y. 23-CV-09601) · 24-CV-00405
“… Case No. 24-CV-00405 (S.D.N.Y.), originally 23-CV-09601 (E.D.N.Y. filed Dec. 29, 2023). Putative class action on behalf of class of persons who sold residential real estate in REBNY Brooklyn using the services of a broker defendant and paid a buyer broker commission from January 18, 2020 through the date of case filing.”Page 14 of the 2026 FDD, Item 3
Outcome: “Christie’s International Real Estate LLC was voluntarily dismissed following the announcement of its settlement in Umpa v. The National Association of Realtors et al.”

Parent, affiliates, master franchisor and subfranchisor

Pending (10)

Zillow Group Inc. v. Midwest Real Estate Data LLC, Compass, Inc. and Compass Illinois Inc.
pending
Compass, Inc. and Compass Illinois Inc. · filed 2026-05-12 · N.D. Ill. E.D. · 1:26-cv-5451
“… Case No. 1:26-cv-5451 (N.D. Ill. E.D., filed May 12, 2026). Zillow Group, Inc. ("Zillow") filed an antitrust lawsuit against Midwest Real Estate Data LLC ("MRED"), Compass, Inc. ("Compass") and Compass Illinois Inc., alleging they violated Sections 1 and 2 the Sherman Act”Page 17 of the 2026 FDD, Item 3
John Marino v. Anywhere Real Estate Inc., Michael J. Williams, Fiona Dias, Mathew J. Espe, V. Ann Hailey, Bryson R. Koehler, Joseph Z. Lenz, Duncan Niederauer, Egbert L.J. Perry, Ryan Schneider, Enrique Silva, Chris Terrill and Felicia Williams
pending
Anywhere Real Estate Inc. (a Compass subsidiary, so an affiliate), its directors and CEO · filed 2025-12-11 · Supreme Court of the State of New York, County of New York · 656398/2025
“… (Index No. 656398/2025, Supreme Court of the State of New York, County of New York, December 11, 2025).”Page 16 of the 2026 FDD, Item 3
John McDaniels v. Anywhere Real Estate Inc., Michael J. Williams, Fiona Dias, Matthew J. Espe, V. Ann Hailey, Bryson R. Koehler, Joseph Z. Lenz, Duncan Niederauer, Egbert L. J. Perry, Ryan M. Schneider, Enrique Silva, Chris Terrill, and Felicia Williams
pending
Anywhere Real Estate Inc. (a Compass subsidiary, so an affiliate of the franchisor), its directors and CEO · filed 2025-12-10 · Supreme Court of the State of New York, County of New York · 656379/2025
“… (Index No, 656379/2025, Supreme Court of the State of New York, County of New York, December 10, 2025).”Page 16 of the 2026 FDD, Item 3
March v. The Real Estate Board of New York et al
pending
At World Properties, LLC ('Parent') and/or the franchisor (see the six-suit introduction) · filed 2024 · S.D.N.Y. · 23-CV-09995
“… Case No. 23-CV-09995 (S.D.N.Y. filed Jan. 1, 2024). Putative class action on behalf of class of persons who sold residential real estate with the Real Estate Board of New York Listing Service Universal Co-Brokerage Agreement Rules and Regulations”Page 14 of the 2026 FDD, Item 3
Tuccori v. At World Properties, LLC
pending
At World Properties, LLC ('Parent', @properties) · filed 2024 · N.D. Ill. · 24-CV-00150
“… Case No. 24-CV-00150 (N.D. Ill. filed Jan. 05, 2024). Putative action on behalf of nationwide class of persons from March 17, 2000 through the date of case filing who purchased residential real estate listed on a Multiple Listing Services”Page 15 of the 2026 FDD, Item 3
Outcome: “@properties has reached a putative nationwide class settlement, which received preliminary approval on October 16, 2025.”
Aratlakov v. Lost Island, et. al.
pending
At World Properties, LLC ('Parent') and a licensed broker partner affiliated with Parent · filed 2023-02-28 · Ill. Cir. Ct. · 2023 LA 19
“… Case No. 2023 LA 19 (Ill. Cir. Ct. filed February 28, 2023). Parent and licensed broker partner who is affiliated with Parent are currently the subject of a use, allegedly prohibited under applicable zoning regulations, in connection with the sale of real estate to buyer Aratlakov. Aratlakov seeks monetary damages.”Page 15 of the 2026 FDD, Item 3
Batton, et al. v. Compass, Inc., et al.
pending
Compass, Inc. (owner of Parent, and the franchisor's guarantor) · filed 2023-11-02 · N.D. Ill. · 1:23-cv-15618
“… No. 1:23-cv-15618 (N.D. Ill.) (“Batton II”), (filed on November 2, 2023), named Compass and seven other brokerages as defendants and alleges that the defendants entered into a continuing contract, combination, or conspiracy to unreasonably restrain interstate trade and commerce in violation of Section 1 of the Sherman Act”Page 17 of the 2026 FDD, Item 3
Outcome: “On April 27, 2026, Compass filed a motion to stay in Batton II pending the Tuccori Court’s review of the Company’s proposed settlement in that matter.”
Within this matter, as the filing narrates it
- Batton, et al. v. National Association of Realtors, et al.
  names an affiliate · Anywhere Real Estate Inc. (named in Batton I; Compass itself is not) · filed 2021-01-25 · N.D. Ill. · 1:21-cv-00430
  “The allegations in Batton II are substantially similar to those contained in the case captioned Batton, et al. v. National Association of Realtors, et al., No. 1:21- cv-00430 (N.D. Ill.) (“Batton I”), (filed on January 25, 2021), which does not name Compass but names the National Association of Realtors and other companies including Anywhere.”Page 17 of the 2026 FDD, Item 3
Counted as one matter, the way Item 3 groups it.
Morrisey v. Curtis, et al.
pending
At World Properties, LLC ('Parent') and a licensed broker partner affiliated with Parent · filed 2023-05-15 · Ill. Cir. Ct. · 2022 L 1289
“… Case No. 2022 L 1289 (Ill. Cir. Ct. filed on May 15, 2023). Parent and licensed broker partner who is affiliated with Parent are currently the subject of a suit that alleges failure by partner and licensed broker partners to disclose structural defects in a single-family home.”Page 15 of the 2026 FDD, Item 3
Umpa v. The National Association of Realtors et al.
pending
At World Properties, LLC ('Parent', @properties) · filed 2023 · W.D. Mo. · 23-cv-000945
“… Case No. 23-cv-000945 (W.D. Mo. filed Dec. 27, 2023). Putative class action on behalf of nationwide class of persons from December 27, 2019 through the date of case filing who used a listing broker affiliated with any corporate defendant in the sale of a home listed on an MLS”Page 15 of the 2026 FDD, Item 3
Outcome: “In November 2024, the court issued a final approval of the settlement in this case. That order was appealed to the 8th Circuit, which held an oral argument on January 14, 2026.”
Within this matter, as the filing narrates it
- Gibson et al v. National Association of Realtors et al
  pending
  names the parent company · At World Properties, LLC ('Parent') · filed 2023 · W.D. Mo. · 4:23-cv-00788
  “On November 4, 2024, Judge Bough entered an order granting final approval of Parent’s class settlement with a nationwide sellers’ class. Gibson et al v. National Association of Realtors et al, 4:23-cv-00788 (W.D. Mo. filed Oct. 31, 2023) (consolidated with Umpa v. The National Association of Realtors et al., Case No. 23- cv-000945 (W.D. Mo. filed Dec. 27, 2023)).”Page 14 of the 2026 FDD, Item 3
Counted as one matter, the way Item 3 groups it.
Burton v. Bluefield Realty Group, LLC et al.
pending
At World Properties, LLC ('Parent', @properties) and/or the franchisor. The filing says the six suits were brought against companies 'including Parent and us'. · D.S.C. · 24-cv-01800-JDA
“… – Case No. 24-cv-01800-JDA (D.S.C.). Putative class action on behalf of statewide class of persons from November 6, 2019, through the date of case filing who used a listing broker in the sale of a home listed on an MLS in the District of South Carolina.”Page 14 of the 2026 FDD, Item 3

Concluded (2)

Dean Drulias v. Fiona Dias, Matthew Espe, Bryson Koehler, V. Ann Hailey, Joseph Lenz, Duncan Niederauer, Egbert Perry, Ryan Schneider, Enrique Silva, Sherry Smith, Chris Terrill, Felicia Williams, Michael Williams, Anywhere Real Estate Inc., and Compass, Inc.
settled
Anywhere Real Estate Inc. (Compass subsidiary, an affiliate) and Compass, Inc. (owner of Parent); also the directors and CEO · filed 2025-12-18 · Superior Court of New Jersey, Morris County, General Equity Division · MRS-C-000133-25
“… (Case No. MRS-C-000133-25, Superior Court of New Jersey, Morris County, General Equity Division, December 18, 2025).”Page 16 of the 2026 FDD, Item 3
Outcome: “On January 2, 2026, the Drulias plaintiff filed a notice voluntarily discontinuing the action with prejudice.”
1925 Hooper LLC et al v. The National Association of Realtors et al.
settled
At World Properties, LLC ('Parent') and/or the franchisor (see the six-suit introduction) · filed 2023 · N.D. Ga. · 23-CV-05392
“… Case No. 23-CV-05392 (N.D. Ga. filed Nov. 22, 2023). Putative class action on behalf of nationwide class of persons who engaged a listing broker affiliated with any defendant anywhere in the United States”Page 14 of the 2026 FDD, Item 3
Outcome: “This case was dismissed on November 21, 2024 following final settlement approval in the consolidated Gibson et al v. National Association of Realtors et al. and Umpa v. The National Association of Realtors et al. case.”

2 of the proceedings above are indented under the matter they belong to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 14 Item 3 discloses agree.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

Multiple class action antitrust lawsuits (Hooper, Burton, Friedman, March, Tuccori, Umpa) suggest systemic compliance issues and reputational risk that could impact agent recruitment and client trust
High litigation exposure across property disputes (Stuart, Kjarsgaard, Aratlakov, Lyons) with allegations of fraud/negligence creates legal liability risk for franchisees

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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