Real estate brokerage giant won’t pursue $30 million termination fee for acquisition failure.

Real estate giant Realogy’s bid to compel Madison Dearborn Partners (MDP) and SIRVA Worldwide to close a $400 million deal to purchase Realogy subsidiary Cartus is officially dead. The companies have settled the litigation between them and a Delaware court has closed the case permanently.

In a Securities and Exchange Commission filing Tuesday, Realogy said it had entered into a confidential settlement agreement with SIRVA and MDP “to mutually dismiss and release all claims” related to the Cartus sale. That same day, Delaware’s chancery court dismissed the case with prejudice — meaning permanently — at the request of all parties.

On July 17, the judge for the case, Vice Chancellor Morgan Zurn, had granted the defendants’ motion to dismiss Realogy’s claims attempting to force them to go through with the deal. While Realogy had accused MDP and SIRVA of using the global coronavirus pandemic to avoid closing the deal, Zurn found that the acquisition failed because Realogy’s lawsuit against SIRVA’s private equity owner, MDP, violated the purchase agreement, according to a newly released transcript of the Zoom hearing.

“I believe that Realogy, and not SIRVA, caused the conditions to fail by filing” its claims against MDP, Zurn said in the transcript.

At the time, Realogy told Inman the company intended to pursue its claims for a $30 million termination fee and go to trial on Nov. 30. On July 29, Realogy petitioned Delaware’s Supreme Court to accept an appeal of Zurn’s July 17 ruling, but on Aug. 7, Zurn declined to “certify” — to signal agreement with — the appeal. An appeal would have kept alive the possibility of compelling the Cartus acquisition.

Realogy did not respond to a request for comment for this story.

Email Andrea V. Brambila.
Like me on Facebook | Follow me on Twitter

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription