Compass "Fishing Expedition" Denied Access to Redfin Boss's Blog Draft as Zillow Legal Case Continues

Redfin attorneys submitted a letter in a filing this week, casting aspersions against fellow brokerage Compass's attempt to tie it into its lawsuit against Zillow, launched earlier this year.

Compass didn’t name Redfin as a defendant in its lawsuit against Zillow Group, but it has deposed Redfin CEO Glenn Kelman and issued two subpoenas for information from the company as legal scuffles accelerate.

Although Redfin isn’t a defendant in the case, its conduct has drawn significant attention. The Seattle-based company announced in April that it would, like Zillow, block listings that had been publicly marketed for more than a day without being entered into a multiple listing service (MLS). According to Compass’s filing, Redfin CEO Glenn Kelman spoke with Compass CEO Robert Reffkin shortly after Zillow revealed its policy. Kelman reportedly acknowledged that the rule would disadvantage Compass but encouraged the company to negotiate rather than resist. Compass declined and later filed suit.

Redfin found itself in legal crossfire for siding with Zillow's listing ban, while also being named as a defendant in a different lawsuit alleging anti-competitive agreements between itself and Zillow.

Redfin's letter, filed this week, responds to Compass's request for a judge to compel Redfin to hand over the early drafts of a blog post Kelman was writing, which it says could prove collusion with Zillow.

Redfin, which paused its Private Listing ban earlier this week, hit back at Compass for filing its requests in the wrong court and for chasing irrelevant information, accusing the brokerage of trying to ensnare Redfin in the Zillow case.

"Compass’s request is a fishing expedition: far from evidencing any collusion, it instead confirms [Redfin CEO Glenn] Kelman’s long-held, public position on clear cooperation. Nor, more importantly, has Compass alleged (because it cannot) that Redfin has changed its policy concerning its listings of the properties that have appeared on Compass’s website before or after the blog was published."

A judge dismissed Compass's request, agreeing with Redfin that the request should have been filed in a different court.

Redfin finds itself part of a powerhouse institution in the United States after being acquired by Rocket this year. Rocket, which operates several financial services provisions, is also in the process of integrating the brokerage Mr Cooper into a new-look real estate ecosystem worth an approximate $2.1 trillion in loan volume.