Christopher Bannon and Amy Rapoport Gibson Obtain Summary Judgment for Real Estate E&O Liability Insurer

12.15.08

Aronberg Goldgehn commercial litigators Christopher Bannon and Amy Rapoport Gibson recently obtained summary judgment in favor of the firm’s client, an errors and omissions liability insurer, in a case involving antitrust and other claims against an Idaho real estate broker.  Buyers of property in Idaho brought a class action suit against the realtor, claiming that it improperly calculated and collected commissions based on the value of new homes to be built on the property, rather than on the value of the land itself.  They alleged claims against the realtor for violations of federal and state antitrust laws, the Idaho Consumer Protection Act, and the Real Estate Settlement Procedures Act.  On behalf of our client, the realtor’s errors and omissions insurer, we sought a declaratory judgment that the insurance policy did not cover those claims in light of policy exclusions for loss resulting from commissions and antitrust violations.  The Idaho federal court agreed and entered judgment in the insurer’s favor.