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FDD Items 3 & 4 · 2024 filing

ERA Real Estate litigation history

What ERA Real Estate disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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
17
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
$3.8M
As stated in Item 3
Bankruptcy (Item 4)
None
Franchisor, parent, predecessor or officer
Filing year
2024
Disclosures cover the prior ten years

Extracted from the 2024 Franchise Disclosure Document

Item 3: litigation

Multiple matters disclosed including antitrust class actions related to NAR commission practices (Moehrl, Burnett, Nosalek settled for $83.5M by Anywhere), TCPA class action against Anywhere Advisors, and various franchise collection actions resolved in favor of ERA.

Item 3 (litigation) · 17 matters disclosed · 7 pending listed

Litigation cases

The franchisor

Pending (2)

  • Thomas Stravecky, Plaintiff, v. Ronald Cika, individually and as guarantor of Coral Shores Realty Florida, LLC, and Coral Shores Realty Florida, LLC, Defendants; and Ronald Cika and Coral Shores Realty Florida, LLC, Counter-Plaintiffs, v. Thomas Stravecky, Infinity International Properties, Inc., an

    pending

    Brought by a franchisee · filed 2023 · Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida · CACE-23002707

    “… d ERA Franchise Systems LLC, Counter-Defendants”Page 18 of the 2024 FDD, Item 3
  • Jennifer Nosalek, Randy Hirschorn, and Tracey Hirschorn, individually and on behalf of all other similarly situated, v. MLS Property Information Network, Inc., Anywhere Real Estate Inc. (f/k/a Realogy Holdings Corp.), Century 21 Real Estate LLC, Coldwell Banker Real Estate LLC, Sotheby's Internation

    pending

    Brought by a third party · filed 2020-12-17 · U.S. District Court for the District of Massachusetts · 1:20-cv-12244

    “Jennifer Nosalek, Randy Hirschorn, and Tracey Hirschorn, individually and on behalf of all other similarly situated, v. MLS Property Information Network, Inc., Anywhere Real Estate Inc. (f/k/a Realogy Holdings Corp.), Century 21 Real Estate LLC, Coldwell Banker Real Estate LLC, Sotheby’s International Realty Affiliates LLC, Better Homes and Gardens Real Estate LLC, ERA Franchise Systems LLC,,”Page 23 of the 2024 FDD, Item 3

    Outcome: “On February 14, 2024, this matter as well as other potential related matters, were administratively stayed in their entirety pending the ruling from the Multidistrict Litigation Panel on the motion to reassign all or part of these matters as MDL litigation.” (page 24)

Concluded (3)

  • ERA Franchise Systems LLC v. LBH National Corporation and Roger Herman

    settled

    Brought against a franchisee · filed 2016-02-22 · Superior Court of California: County of Los Angeles · YC 071137

    “… (Case No. YC 071137, Superior Court of California: County of Los Angeles). On February 22, 2016, we filed a complaint against the franchisee and its guarantor for breach of contract, breach of promissory note, breach of Guaranty, breach of Security Agreement, account stated, money lent, quantum meruit and accounting.”Page 19 of the 2024 FDD, Item 3

    Outcome: “By order dated, September 29, 2017, the bankruptcy court approved our settlement with the Trustee for the former franchisee, granting us an allowed claim in both the bankruptcy and the state court action against the former franchisee (but not the guarantor) for $5,407,991.75, plus $362,851.47 in legal fees, dismissing the former franchisee’s counterclaims and ordering the Trustee to release to us $55,353.29 in cash ...”

  • ERA Franchise Systems v. The Herman Group, LLC and Roger Herman

    settled

    Brought against a franchisee · filed 2016-02-22 · District Court, County of Denver, State of Colorado · 2016 CV 30606

    “… (Case No. 2016 CV 30606, District Court, County of Denver, State of Colorado). On February 22, 2016, we filed a Complaint against the former franchisee and its guarantor alleging breach of contract, breach of promissory note, breach of Guaranty, replevin, account stated, money lent, quantum meruit and accounting.”Page 19 of the 2024 FDD, Item 3

    Outcome: “By settlement agreement dated September 15, 2017, former franchisee and its guarantor executed a stipulated judgment in the amount of $3,794,248.06 in our favor.” (page 20)

  • ERA Franchise Systems LLC v. Holiday Real Estate, Inc., Jerome E. Milko, and Denise A. Milko

    settled

    Brought against a franchisee · filed 2014-11-25 · Superior Court of New Jersey, Law Division: Morris County · MRS-L-2893-14

    “… (Case No. MRS-L-2893-14, Superior Court of New Jersey, Law Division: Morris County). On November 25, 2014, we filed suit against the former franchisee and its guarantors for trademark infringement and collection of amounts due.”Page 18 of the 2024 FDD, Item 3

    Outcome: “This matter settled on April 8, 2016, and the former franchisee and guarantors agreed to pay us $20,000 over time.”

Parent, affiliates, master franchisor and subfranchisor

Pending (5)

  • The Office of the Attorney General of the State of Washington

    pending

    Government or regulatory action · Sotheby's International Realty, Inc. and Century 21 Real Estate LLC · filed 2024 · Washington Office of the Attorney General

    “… The Washington Office of the Attorney General is conducting an investigation of Sotheby’s International Realty, Inc., a Related Party of SIR and Real Estate Affiliate, Century 21, involving possible past or current violations of RCW 19.86.020, RCW 19.86.030, RCW 19.86.040, RCW 19.86.050 and the Sherman Act, 15 U.S.C.”Page 27 of the 2024 FDD, Item 3

    Outcome: “Anywhere, Sotheby’s International Realty, Inc. and Century 21 will continue to work with the Office of the Attorney General to provide the requested information.” (page 28)

  • Batton, Bolton, Brace, Kim, James, Mullis, Bisbicos and Parsons v. The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, Inc. BHH Affiliates, LLC, HSF Affiliates, LLC, The Long & Foster Companies, Inc., RE/MAX LLC and Keller Williams Realty, Inc. (formerly captioned

    pending

    Anywhere Real Estate Inc. (f/k/a Realogy Holdings Corp.) · filed 2021-01-25 · U.S. District Court, Northern District of Illinois · 1:21-cv-430

    “Batton, Bolton, Brace, Kim, James, Mullis, Bisbicos and Parsons v. The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, Inc. BHH Affiliates, LLC, HSF Affiliates, LLC, The Long & Foster Companies, Inc., RE/MAX LLC and Keller Williams Realty, Inc. (Case No. 1:21- cv-430, U.S. District Court, Northern District of Illinois) (formerly captioned Leeder).”Page 24 of the 2024 FDD, Item 3

    Outcome: “By Minute Order, dated February 28, 2024, the Court ordered defendants to answer the Amended Class Action Complaint and file any Motion to Dismiss for lack of personal jurisdiction by April 15, 2024.”

  • Christopher Moehrl, individually and on behalf of others similarly situated v. The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, Inc., Re/Max Holdings, Inc., and Keller Williams Realty, Inc.

    pending

    Brought by a third party · Anywhere Real Estate Inc. (f/k/a Realogy Holdings Corp.) · filed 2019-03-06 · United States District Court for the Northern District of Illinois · 1:19-cv-01610

    “… (Case No. 1:19-cv-01610, United States District Court for the Northern District of Illinois).”Page 21 of the 2024 FDD, Item 3

    Outcome: “On November 20, 2023, the Court granted the motion for preliminary approval of the Anywhere Settlement Agreement. A final approval hearing for the Anywhere Settlement Agreement is scheduled for May 9, 2024.” (page 22)

  • Ronald Chinitz, Sarah Bumpus, David Gritz, Micheline Peker, Nathan Rowan, Cheryl Rowan, Daniel Caruso, and Paramjit Lalli, individually and on behalf of a class of similarly situated persons v. Realogy Holdings Corp., Realogy Intermediate Holdings LLC, Realogy Group LLC, Realogy Services Group LLC,

    pending

    Brought by a third party · Realogy Holdings Corp. and subsidiaries (Anywhere Advisors LLC and the 'Anywhere defendants') · filed 2019-06-11 · U.S. District Court, Northern District of California, San Francisco Division · 3:19-cv-03309-JD

    “… Realogy Brokerage Group LLC (f/k/a NRT LLC), and Mojo Dialing Solutions, LLC,”Page 24 of the 2024 FDD, Item 3

    Outcome: “The pretrial conference and trial dates are vacated pending further order.” (page 25)

  • Scott and Rhonda Burnett, Ryan Hendrickson, Jarod Breit, Scott Trupiano, and Jeremy Keel, on behalf of themselves and all others similarly situated v. National Association of Realtors, Realogy Holdings Corp., HomeServices of America, Inc., BHH Affiliates, LLC, HSF Affiliates, LLC, Re/Max LLC and Kel

    pending

    Brought by a third party · Anywhere Real Estate Inc. (f/k/a Realogy Holdings Corp.) · filed 2019-04-29 · United States District Court for the Western District of Missouri · 4:19-cv-00332-SRB

    “… ler Williams Realty, Inc., (Case No. 4:19-cv-00332-SRB,”Page 22 of the 2024 FDD, Item 3

    Outcome: “This case went to trial on October 16, 2023, with all defendants except the Anywhere defendants and Re/Max LLC. On October 5, 2023, Anywhere entered into the nationwide Anywhere Settlement Agreement with the Moehrl and Burnett plaintiffs for $83.5 million.” (page 23)

Concluded (5)

  • Sheri Dodge and Neil Dodge and Ram Agrawal and Sarita Agrawal, individually and on behalf of all others similarly situated v. PHH Corporation, Realogy Holdings Corp., et al. (formerly captioned Timothy L. Strader, Sr. and Lester L. Hall, Jr. v. PHH Corporation, et al.)

    settled

    Brought by a third party · Realogy Holdings Corp. and subsidiaries (with PHH defendants) · filed 2015-11-25 · United States District Court, Central District of California · 8:15-CV-01973

    “Sheri Dodge and Neil Dodge and Ram Agrawal and Sarita Agrawal, individually and on behalf of all others similarly situated v. PHH Corporation, Realogy Holdings Corp., PHH Home Loans LLC, PHH Mortgage Corporation, RMR Financial, LLC, NE Moves Mortgage LLC, PHH Broker Partner Corporation, Realogy Group LLC, Realogy Intermediate Holdings LLC,”Page 26 of the 2024 FDD, Item 3

    Outcome: “On September 10, 2018, Realogy paid its portion of the settlement in the amount of $8,375,000.” (page 27)

  • Christopher Bulen and Janith Martinez v. Realogy Corporation, Realogy Operations, Realogy Franchise Group LLC, Realogy Services Group, LLC

    settled

    Realogy Corporation, Realogy Operations, Realogy Franchise Group LLC, Realogy Services Group, LLC · filed 2010-12-03 · United States District Court, District of Nevada · 3:10-CV-00755-RCJ-VPC

    “… (Case No. 3:10-CV-00755-RCJ-VPC, United States District Court, District of Nevada). This litigation concerns the Preferred Alliance Agreement between RSG and Townsend Hoffman Corporation initially effective June 18, 2007,”Page 25 of the 2024 FDD, Item 3

    Outcome: “The settlement was funded on November 17, 2014, in the amount of $530,630.42.” (page 26)

  • Matter with no printed caption

    settled

    Government or regulatory action · Realogy Group, NRT and Coldwell Banker Residential Brokerage (the 'Realogy parties'); Cendant Real Estate Services Group LLC as joint-venture partner · filed 2007 · United States District Court, Central District of California (HUD lawsuit); FTC investigation

    “The Department of Housing and Urban Development (“HUD”) and the FTC conducted a joint regulatory investigation of the activities of Property I.D. Associates, LLC (“Associates”), a joint venture between Property I.D. Corporation, Cendant Real Estate Services Group LLC and Coldwell Banker Residential Brokerage Corporation.”Page 27 of the 2024 FDD, Item 3

    Outcome: “In May 2008, HUD and the Realogy parties agreed to settle the matter with no imposition of fines or penalties and a permanent injunction to refrain from future joint ventures for hazard disclosure reports operated in violation of RESPA.”

  • Cendant Global Services, B.V. v. Look & Find, S.A. et al.

    dismissed

    Brought against a franchisee · Cendant Global Services, B.V. · filed 1999-07-26 · First Instance Court No. 42 of Madrid · Civil Case No. 525/99

    “… (Civil Case No. 525/99, First Instance Court No. 42 of Madrid). On July 26, 1999, Cendant Global filed a complaint seeking a judgment (1) declaring termination of agreement with Look & Find, S.A., in accordance with law,”Page 20 of the 2024 FDD, Item 3

    Outcome: “On September 5, 2016, the Court affirmed its prior decision that Look & Find must pay Cendant Global damages of approximately $1 million, and that the infringing franchisees (78 in total) must pay damages for trademark infringement.”

  • Look & Find, S.A. v. Orlando Gonzales Arias, Fajardo, Ltd., Cendant Corporation, Cendant Global Services, B.V. and Century 21 Iberia

    judgment

    Brought by a franchisee · Cendant Corporation and Cendant Global Services, B.V. · filed 1999-06-17 · Madrid First Instance Court No. 42 · Civil Case No. 393/99

    “… (Civil Case No. 393/99 Madrid First Instance Court No. 42). On June 17, 1999, Look & Find, S.A. a former ERA master franchisor, filed a 200-page writ alleging unfair competition and seeks U.S. $41 million in damages.”Page 20 of the 2024 FDD, Item 3

    Outcome: “In January 2004, the former master franchisor’s claims were denied and the defendants were awarded costs.”

This list shows 15 of the 17 matters Item 3 discloses; the rest are in the filing.

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

  • Trademark infringement litigation suggests brand IP vulnerabilities that could affect franchisee operations

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?