In an escalating legal conflict, Compass is attempting to obtain testimony from Lloyd Frink, a co-founder of Zillow, as part of its efforts to challenge Zillow's new listing standards. This policy prohibits the posting of property listings that have been publicly advertised for more than a single business day before being formally entered into the Multiple Listing Service (MLS). Compass maintains that Frink holds crucial and exclusive insights into this policy, insights that cannot be provided by any other individual. Zillow, conversely, has contested this assertion, filing a motion on Friday to refute Compass's claims.
Compass had requested a four-hour deposition with Frink scheduled for September 24th, asserting that he could directly address Zillow's financial and strategic motivations behind the contentious listing access standards. According to excerpts from previous depositions, Frink was present at a meeting between Zillow and Compass executives on April 1st, just over a week before Zillow announced its new policy. Zillow's Chief Industry Development Officer, Errol Samuelson, testified that Frink's attendance was intended to signal Zillow's commitment to finding a resolution and encouraging listing transparency. Zillow's Chief Financial Officer, Jeremy Hofmann, further indicated that Zillow had hoped to establish a broader national partnership with Compass. However, Zillow argues that Compass has already deposed three executives who attended this meeting and has not demonstrated that Frink possesses any information relevant to Compass's motion for a preliminary injunction, especially since Frink has not been involved in subsequent negotiations.
Zillow views Compass's attempt to depose Frink as an unnecessary tactic, suggesting it is an attempt to harass the company by repeatedly targeting senior executives. Furthermore, Zillow has asked the court to allow redaction of certain documents, including a strategy paper titled \"Post Clear Cooperation Strategy,\" arguing that public disclosure of this information could result in competitive harm. They also seek to seal documents detailing their relationships with other real estate industry participants, fearing that public knowledge of these views could enable market rivals to adjust their strategies during commercial negotiations. This legal battle, initiated in mid-June, centers on Compass's claim that Zillow's policy inflicts irreparable harm by hindering its three-phase marketing strategy. A hearing for Compass's preliminary injunction motion, aimed at preventing Zillow from enforcing the policy, is scheduled for November.
This ongoing legal dispute highlights the complex and competitive landscape of the real estate industry, where innovation and established practices often clash. The outcome of this case could significantly influence how real estate listings are managed and disseminated, ultimately shaping the future of property marketing and consumer access to information. It underscores the importance of fair competition and transparent practices in fostering a healthy marketplace for all participants.