Compass and ERA Real Estate have filed a lawsuit against former ERA president Alex Vidal, alleging that his move to lead rival franchisor REMAX violates noncompete and other restrictive covenant agreements.
The lawsuit, filed Monday in Delaware’s Court of Chancery, seeks an injunction that would effectively prevent Vidal from continuing in his new role as REMAX president. Compass alleges Vidal had access to sensitive information about its franchise operations, agent recruiting strategies and proprietary technology that could benefit a direct competitor.
The legal battle comes less than two months after Vidal left ERA Real Estate following more than three years as president. REMAX announced his appointment on Sept. 1, shortly after its acquisition by The Real Brokerage created the newly combined Real REMAX Group.
The lawsuit also comes as Compass has increasingly engaged in litigation with major real estate industry players, including home search portals and multiple listing services. Vidal and REMAX did not immediately respond to requests for comment. Compass declined to comment beyond the allegations outlined in its court filings.
Compass seeks to block Vidal from leading REMAX
According to the complaint, Vidal signed restrictive covenant agreements in 2022, 2024 and 2025 as conditions of receiving equity compensation from Anywhere Real Estate, which Compass acquired in January. The agreements included a one-year prohibition on performing similar services for a competing business, a two-year restriction on soliciting certain employees and business relationships, and ongoing confidentiality obligations.
Compass alleges that Vidal violated those agreements when he resigned from ERA on Aug. 21 and took over as REMAX president just 11 days later.
“This is an action to enforce restrictive covenants that a senior franchise executive accepted on three separate occasions as a condition of receiving equity compensation, and that he unilaterally decided were invalid and began breaching them by serving as President of one of Plaintiffs’ most direct competitors,” attorneys for Compass and ERA alleged in the complaint.
The companies argue that Vidal’s new position involves substantially similar responsibilities, including growing franchise networks, recruiting and retaining agents, supporting broker-owners and developing business strategies.
In a separate filing supporting its request for a preliminary injunction, Compass asked the court to prevent Vidal from “serving as President of REMAX or otherwise performing same-or-similar services” for REMAX or another competing business. Compass is also seeking a permanent injunction, damages, attorneys’ fees and other relief.
The Delaware lawsuit follows an earlier legal battle in Texas. According to the complaint, Compass and ERA initially sued Vidal on Sept. 19 and sought a temporary restraining order. A Texas Business Court judge denied that request on Sept. 21 without ruling on the merits, citing a contractual forum-selection clause designating Delaware as the appropriate venue.
On Oct. 15, the Texas court determined that the lawsuit should be dismissed because Delaware was the appropriate venue, according to the complaint. Compass filed its new lawsuit four days later.
Compass cites confidential business intelligence
Beyond the alleged noncompete violation, Compass claims Vidal possesses extensive knowledge of sensitive business information that could provide REMAX with a competitive advantage.
According to the complaint, that information includes ERA franchise agreements, negotiated rates and renewal schedules, broker-owner relationships, agent recruiting strategies and confidential incentives offered to franchisees.
Compass also alleges that Vidal participated in discussions about its proprietary HOME technology platform, including its planned rollout across the company’s franchise brands. The lawsuit describes Vidal as a central participant in developing the platform’s strategy, including decisions about which features to prioritize and how to position the technology against competitors.
“This Confidential Information is not the type that can simply be forgotten or set aside. It is deep, strategic knowledge that inevitably informs competitive decision-making at the executive level,” Compass lawyers wrote.
Compass argues that the potential harm is particularly significant because REMAX is undergoing its own integration following its acquisition by The Real Brokerage, creating opportunities for Vidal to apply knowledge gained while working at ERA.
Vidal has disputed the enforceability of the noncompete agreement. According to the complaint, Vidal’s attorney informed Compass that the former ERA president did not possess the company’s confidential information and would comply with its nondisclosure requirements. However, the attorney maintained that the noncompete was unenforceable and that Vidal would not comply with that provision.
Compass disputes that position, arguing that the agreements are enforceable and that Vidal accepted substantial equity compensation in exchange for agreeing to the restrictions. The company is asking the Delaware court to intervene while the lawsuit proceeds, arguing that monetary damages alone would be insufficient to address the potential competitive harm.
