As Zillow and Chicago’s multiple listing service head toward the first major legal showdown in a case that could determine the future of real estate marketing, the two groups are arguing over whether they should first try to find a settlement outside court.
MRED MLS, the Chicago-based MLS that has become a central player in the struggle over private listings, asked a federal judge this week to send the parties to arbitration.
Zillow sued MRED and Compass in May. At issue was what Zillow described as an illegal conspiracy that targets the portal’s policy requiring listings to be distributed via the MLS and accessible to all members — including the real estate search portals — without first being marketed off-MLS.
Zillow said in its lawsuit that Compass and MRED had worked together to at least threaten to take away Zillow’s access to the listings that power its business.
Zillow briefly lost access to listings throughout Chicagoland and beyond, as MRED said Zillow violated MLS rules by blocking a handful of Compass listings that had been marketed off-MLS.
Zillow quickly won a temporary restraining order that restored access to MRED listings while the parties continued toward a trial. The parties are scheduled to participate in a hearing this week, during which they will further argue over Zillow’s continued access to listings.
The MLS, which recently expanded to accept members anywhere in the nation, has said the court should deny Zillow’s request for a preliminary injunction, meaning the portal would lose access to listings.
Now, the MLS has asked the court to force the parties into arbitration, which could lead to a settlement.
MRED first asked for arbitration in May. Zillow disagreed in a filing Friday, and MRED subsequently reiterated its preference for arbitration in a filing on Monday.
MRED said that its rules already require participants to attempt arbitration before heading to court.
“After compelling arbitration, the Court should decline to address the preliminary injunction motion and should stay all non-arbitrable claims,” MRED wrote in a filing on Monday.
The preliminary injunction hearing is set to start in a federal courtroom in Chicago on Wednesday.
