Compass granted expedited discovery in Zillow suit

By Housing News


Compass
’s
motion
for
preliminary
injunction
in
its

lawsuit

against

Zillow

is

not
dead
yet.

On
Monday,
Judge
Jeannette
Vargas
of
U.S.
District
Court
in
New
York
granted
Compass’s
motion
for
expedited
discovery,
ordering
a
limited
scope
of
discovery
related
to
its
motion.

With

the
preliminary
injunction
,

Compass

is
hoping
to
stop

Zillow

from
implementing
and
enforcing
its
listing
access
standards
,
which
ban
listings
that
are
not
entered
into
the
MLS
within
24
hours
of
public
marketing.
However,
according
to
a
Compass
spokesperson,
some
listings
held
by
its
agents
received
violation
notices
from
Zillow
after
being
entered
into
their
local

MLS

within
24
hours
of
marketing
as
coming
soons
and
not
active
listings.

The
parties
have
until
next
Monday
to
file
a
joint
letter
that
outlines
the
agreed
upon
narrow
scope
of
expert
discovery
and
a
revised
schedule
of
deadlines
and
hearing
dates.
A
conference
will
then
be
held
next
Wednesday
to
discuss
the
proposed
scope
and
schedule
of
the
discovery. 

In
a
letter
to
the
judge
filed
on
Saturday,
the
parties
stated
that
Zillow
was
only
willing
to
“review
for
responsiveness”
10,000
to
12,000
documents.
According
to
the
letter,
this
document
limit
includes
both
documents
that
include
Compass’s
proposed
search
terms
and
the
document
attached
to
or
embedded
within
those
documents.
In
contrast,
Compass
says
its
current
search
term
proposal
hits
on
15,000
documents,
but
if
the
attached
or
embedded
documents
are
included
this
figure
balloons
to
39,000
documents.
Despite
these
differences
the
parties
said
they
hope
to
negotiate
to
a
10,000
to
15,000
document
range. 

Due
to
the
compressed
discovery
timeline,
Zillow
told
the
court
that
depending
on
how
large
Compass’s
discovery
request
is,
it
may
not
be
able
to
meet
the
production
timeframes.
Due
to
this,
Zillow
is
asking
the
court
to
“reaffirm
its
guidance
that
the
parties
aim
for
a
review
population
numbering
in
the
thousands,
not
tens
of
thousands.”

Zillow
also
argues
that
it
should
not
be
required
to
produce
its
board
presentations
or
board
minutes
during
expedited
discovery.

“These
documents
are
only
marginally
relevant
to
the
issues
raised
in
Compass’s
PI
motion,
and
any
potentially
relevant
portions
of
these
documents
are
largely
duplicative
of
other
documents
that
Zillow
has
already
agreed
to
produce,”
the
letter
states. 

Compass,
however,
argues
that
the
materials
are
“highly
relevant”
for
its
claims
and
defenses
and
that
Zillow
has
“not
articulated
a
sufficient
reason
to
withhold
these
materials.”

In
addition
to
board
meeting
materials,
Compass
is
also
requesting
the
Zillow
produce
data
from
between
Jan.
1,
2024,
and
June
23,
2025,
related
to
user
data,
traffic,
visitors
and
visits,
time
spent
on
the
site
and
all
third-party
data
sets
that
Zillow
possesses
or
uses,
including
Comscore
data. 

The
letter
also
addresses
depositions
and
expert
discovery,
both
of
which
Zillow
does
not
feel
are
necessary
as
it
does
not
believe
an
evidentiary
hearing
is
necessary
to
resolve
Compass’s
motion
for
preliminary
injunction. 

Additionally,
both
parties
have
“interrogatories”
they
are
asking
for.
Compass
is
asking
for
a
list
of
“every
discussion,
message,
and
phone
call”
between
Zillow
and

Redfin
,
and
Zillow
and

eXp

between
August
1,
2024,
and
June
23,
2025.
For
its
part,
Zillow
is
asking
Compass
to
identify
all
of
its
listings
that
were
part
of
the
three-phase
marketing
plan
that
were
removed
from
Zillow
or
any
other
listing
platform
due
to
Zillow’s
listing
access
standards
policy.
Zillow
also
wants
Compass
to
“describe
in
detail”
all
of
the
analyses
performed
regarding
the
impact
of
the
three-phase
marketing
plan
on
home
sales,
commissions
and
Compass’s
revenue,
and
to
identify
all
the
harms
Compass
has
alleged
it
will
suffer
as
a
result
of
Zillow’s
policy. 

The
letter
included
three
options
for
proposed
discovery
schedules.
During
a
July
8
hearing,
the
court
requested
a
discovery
of
“several
thousands
of
documents,
but
not
tens
of
thousands,”
but
it
may
have
to
refine
that
scope
during
the
hearing
next
Wednesday. 

 

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