Breaking News

In This Section

Realty South Class Action

PDF | Print

Breaking News, April 21, 2009.

Federal Court enters judgement as to liability in favor of the class and against RealtySouth.

RealtySouth ABC Fee Certified Class Action Notice

United States District Court For the Northern District of Alabama

If you were a RealtySouth customer and were involved in a real estate closing since September 23, 2003, a class action lawsuit may affect your rights

 

A Court authorized this notice. This is not a solicitation from a lawyer.

 

  • Vicki Busby, on behalf of herself and other people similarly situated, has sued JRHBW Realty, Inc. d/b/a RealtySouth (hereinafter referred to as “RealtySouth”) alleging that RealtySouth violated the Real Estate Settlement Procedures Act (“RESPA”) by charging individuals a $149 “ABC Fee” (sometimes called an administrative brokerage commission) for which no service was performed. RealtySouth denies the allegations of the lawsuit.

  • The Court has allowed the lawsuit to go forward as a class action on behalf of all individuals (expressly excluding the federal judiciary and the judiciary’s immediate family members for the Northern District of Alabama), whether or not having any relationship with RealtySouth, who have paid an “ABC Fee,” also known as an “administrative brokerage commission” to RealtySouth, pursuant to a real estate closing and/or settlement in connection with a federally related mortgage loan covering property located within the states of Alabama, Florida or Georgia, at any time from September 23, 2003, to the present.

  • The court has not decided whether RealtySouth did anything wrong. There is no money available now, and no guarantee there will be. However if you fall within the class definition set out immediately above, your legal rights are affected, and you have a choice to make now:

 

Your Legal Rights and Options In This Lawsuit

Do Nothing

Stay in this lawsuit. Await the outcome. Give up
certain rights.

By doing nothing, you keep the possibility of getting
money that may come from a trial or settlement. But,
you give up any rights to sue RealtySouth separately
about the same legal claims asserted or that could
have been asserted under the allegations in this lawsuit.

Ask To Be
Excluded

Get out of this lawsuit. Get no benefits from it.
Keep rights.

If you ask to be excluded and the money is later
awarded, you won’t share in that. But, you keep any rights to sue RealtySouth separately about the same
legal claims asserted or that could have been asserted
under the allegations in this lawsuit.

 

  • Your options are explained in this notice. To ask to be excluded, you must act before March 5, 2009.

  • Lawyers for Busby and members of the class action that she represents must prove the claims against RealtySouth in a trial that will be set in 2009. If money is obtained from RealtySouth, you will be notified about how to ask for a share.

  • Any questions? Read on and visit www.hwnn.com/realtysouthclassaction

 

1. Why did I get this notice?

 

RealtySouth records show that you may have paid an ABC Fee in connection with a real estate closing sometime between September 23, 2003, and the present. This notice explains that the Court has allowed, or “certified,” a class action lawsuit that may affect you. You have legal rights and options that you may exercise before the court holds the trial. The trial is to decide whether the claims being made against RealtySouth on your behalf are correct. Judge Virginia Emerson Hopkins of the United States District Court for the Northern District of Alabama is overseeing this class action. The lawsuit is known as Busby, et al. v. JRHBW Realty, Inc. d/b/a RealtySouth, Civil Action No. 2:04-CV-2799-VEH.

 

 

2. What is this lawsuit about?

This lawsuit is about whether RealtySouth violated RESPA by charging a separate and distinct $149 ABC Fee to individuals, in connection with a federally related real estate closing, for which RealtySouth performed no service. In other words, the lawsuit alleges that RealtySouth charged individuals an ABC Fee for which it performed no service. More information concerning RESPA and the prohibition on charging fees for which no service is performed can be found at http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm.

 

3. What is a class action and who is involved?

In a class action lawsuit, one or more people called “Class Representatives” (in this case Vicki Busby) sue on behalf of other people who have similar claims. The people together are a “Class” or “Class Members.” The individual who sued -- and all the class members like her -- are called the Plaintiffs. The company they sued (in this case, JRHBW Realty, Inc. d/b/a RealtySouth) is called the Defendant. One court resolves the issues for everyone in the class -- except for those people who choose to exclude themselves from the class.

 

4. Why is this lawsuit a class action?

The Court decided that this lawsuit can be a class action and move towards trial because it meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in Federal Courts. Specifically, the Court found:

  • That the Class is sufficiently numerous;

  • There are legal questions and facts that are common to each individual's claim;

  • Vicki Busby's claim is typical of the claims of the rest of the Class;

  • Ms. Busby and the lawyers representing the Class will fairly and adequately represent the Class’ interests;

  • The common legal questions and facts are more important than questions that affect only individuals; and

  • This class action will be more efficient than having many individual lawsuits.

 

More information about why the court is allowing this lawsuit to be a class action is in the Court order and memorandum opinion certifying the class, the Court order and memorandum opinion upon reconsideration of the class-certification order and the 11th Circuit Court of Appeals opinion regarding certification of this class action. These documents are available at www.hwnn.com/realtysouthclassaction.

 

The claims in the lawsuit

 

5. What does the lawsuit complain about?

In the lawsuit, the Plaintiffs say that RealtySouth charged a separate and distinct line item $149 ABC Fee for which RealtySouth performed no specific service. The Plaintiffs claim that this action by RealtySouth is a violation of RESPA, which prohibits charging or receiving a fee for which no service is performed. You can read the Plaintiffs’ Class Action Complaint at www.hwnn.com/realtysouthclassaction.

 

6. How does RealtySouth answer?

RealtySouth denies that it did anything wrong and says that the $149 ABC Fee is part of it overall fees for its entire array of services. RealtySouth’s answer to the complaint is also available at the website address www.hwnn.com/realtysouthclassaction.

 

7. Has the Court decided who is right?

The Court has not decided whether RealtySouth or the Plaintiffs are correct. By establishing the Class and issuing this Notice, the Court is not suggesting that the Plaintiffs will win or lose the case. The Plaintiffs must prove their claims at a trial starting in 2009.

 

8. What are the Plaintiffs asking for?


The Plaintiffs seek to recover from RealtySouth triple the amount of each $149 ABC Fee collected by RealtySouth from class members. The Plaintiffs are also asking for injunctive relief preventing RealtySouth from charging individuals an ABC Fee in the future for which no service is performed.

 

9. Is there any money available now?

No money or benefits are available now because the Court has not yet decided whether RealtySouth did anything wrong, and the two sides have not settled the case. There is no guarantee that money or benefits will ever be obtained. If they are, you will be notified about how to ask for a share.

 

Who is in the class

 

You need to decide whether you are affected by this lawsuit.

 

10. Am I part of this Class?

Judge Hopkins decided that all individuals who paid an “ABC Fee” to RealtySouth, pursuant to a real estate closing and/or settlement in connection with a federally related mortgage loan covering property located within the states of Alabama, Florida, or Georgia, at any time from September 23, 2003 to the present, are Class Members. Judge Hopkins also specified that members of the federal judiciary and their immediate family members are not members of the class.

11. Which individuals are included?

Individuals who paid a $149 ABC Fee to RealtySouth, pursuant to a real estate closing and/or settlement in connection with a federally related mortgage loan covering property within the states of Alabama, Florida, or Georgia. You are included if you paid this fee at any time from September 23, 2003, to the present.

 

12. What is a “federally related” mortgage?

A federally related mortgage loan is defined at Chapter 12 of the United States Code Section 2602, as well as Chapter 24 of the Code of Federal Regulations Section 3500.2. Most single-family residential home loans made by FDIC insured lenders are federally related. However, there are several exclusions listed at 24 C.F.R. 3500.5(b), including but not limited to loans involving temporary financing and loans for unimproved property or vacant land. These statutory and code sections can be found at: www.hwnn.com/realtysouthclassaction.

 

13. Who is excluded from the class?

To prevent any potential conflict of interest, members of the federal judiciary and their immediate family members are excluded from the class.

 

14. I’m still not sure if I'm included.

If you are still not sure whether you are included, you can get free help at www.hwnn.com/realtysouthclassaction, or by calling or writing to the lawyers in this case, at the phone number or address listed in question 24.

 

Know your rights and options

 

You have to decide whether to stay in the class or ask to be excluded before the trial and you have to decide this now.

 

15. What happens if I do nothing at all?

You don't have to do anything now if you want to keep the possibility of getting money from this lawsuit. By doing nothing you are staying in the Class. If you stay in and the Plaintiffs do obtain money, either as a result of the trial or a settlement, you will be notified about how to apply for a share (or how to ask to be excluded from any settlement). Keep in mind that if you do nothing now, regardless of whether the Plaintiffs win or lose the trial, you will not be able to sue, or continue to sue, RealtySouth -- as part of any other lawsuit -- about the same legal claims that are the subject of this lawsuit. You will also be legally bound by all Orders the Court issues and judgments the Court may enter in this class action.

 

16. Why would I ask to be excluded?

If you already have your own RESPA claim against RealtySouth and want to continue with it, you need to ask to be excluded from the class. If you exclude yourself from the Class -- which also means to remove yourself from the Class, and is sometimes called “opting-out” of the Class -- you won't get any money or benefits from this lawsuit even if the Plaintiffs obtain them as a result of the trial or from any settlement (that may or may not be reached) between RealtySouth and the Plaintiffs. However, you may then be able to sue or continue to sue RealtySouth on your own for violations of RESPA that have occurred within the past one year time frame. If you exclude yourself, you will not be legally bound by the Court’s orders or judgment in this class action.

If you start your own lawsuit against RealtySouth after you exclude yourself, you'll have to hire and pay your own lawyer for that lawsuit, and you'll have to prove your claims. If you do exclude yourself so you can start or continue your own lawsuit against RealtySouth, you should talk to your own lawyer soon, because your claims may be subject to a one year statute of limitations.

 

17. How do I ask the Court to exclude me from the Class?

To ask to be excluded, you must send in an “Exclusion Request” in the form of a letter sent by mail, stating that you want to be excluded from Busby, et al. v. JRHBW Realty, Inc. d/b/a RealtySouth. Be sure to include your name and address and sign the letter. You must mail your Exclusion Request postmarked by March 5, 2009, to Busby, et al. v. JRHBW Realty, Inc. d/b/a RealtySouth Exclusions 2025 3rd Ave. N., Suite 800, Birmingham, AL 35203. You may also get an Exclusion Request form at the website www.hwnn.com/realtysouthclassaction.

 

The lawyers representing you

 

18. Do I have a lawyer in this case?

The court decided that the law firm of Hare, Wynn, Newell, and Newton LLP of Birmingham,
Alabama is qualified to represent you and all Class Members. The law firm is called “Class Counsel.” More information about this law firm, its practice areas, and its lawyers’ experience is available at www.hwnn.com.

 

19. Should I get my own lawyer?

You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, if you want your own lawyer, you will have to hire that lawyer. For example, you can ask him or her to appear in court for you if you want someone other than Class Counsel to speak for you.

20. How will the lawyers be paid?


If Class Counsel get money or benefits for the Class, they may ask the Court for fees and expenses. You won't have to pay these fees and expenses. If the Court grants Class Counsel’s request, the fees and expenses would be either deducted from any money obtained for the Class or paid separately by RealtySouth.

The Trial

 

The court has not yet set a specific trial date, but will schedule a trial date in 2009 to decide who is right in this case. The case will not go to trial if it is resolved by a settlement or otherwise before the scheduled trial date.

 

21. How and when will the Court decide who is right?

As long as the case isn't resolved by a settlement or otherwise, Class Counsel will have to prove the Plaintiffs’ claims at a trial. The trial date is not yet set but will be set in 2009, in the United States District Court for the Northern District of Alabama, Hugo L. Black United States Courthouse, 1729 Fifth Avenue North, Birmingham, Alabama 35203 in Courtroom 6A. During the trial, a Jury or the Judge will hear all the evidence to help them reach a decision about whether the Plaintiffs or Defendant are right about the claims in the lawsuit. There is no guarantee that the Plaintiffs will win, or that they will get any money for the Class.

 

22. Do I have to come to the trial?

You do not need to attend the trial. Class Counsel will present the case for the Plaintiffs, and RealtySouth will present the defenses. You or your own lawyers are welcome to come at your own expense. who is right?

 

23. Will I get money?

If the Plaintiffs obtain money or benefits, you will be notified about how to participate. We do not know how long this will take.

 

24. Are more details available?

Visit the website www.hwnn.com/realtysouthclassaction, where you will find: 1) The Plaintiff’s Complaint; 2) the Defendant’s Answer; 3) the Order and Memorandum Opinion Certifying the Class Action; 4) The Order and Memorandum Opinion on Reconsideration of Class Certification; 5) the 11th Circuit Court of Appeals Opinion on Class Certification; 6) the Order and Memorandum Opinion denying summary judgment; 7) Code sections defining “federally related”; and, 8) an Exclusion Request form. You may also speak to one of the lawyers by calling 1-800-568-5330, or by writing to Busby v. RealtySouth class-action, 2025 3rd Ave. N., Birmingham, AL 35203.

 
The Historic Massey Building | 2025 Third Avenue North | Suite 800 | Birmingham, Alabama 35203 | Phone: (205) 328-5330 | Toll Free: (800) 568-5330
Metropolitan National Plaza | 4220 N. Rodney Parham Rd | Suite 250 | Little Rock, Arkansas 72212 | Phone: (501) 225-5500 | Toll Free: (877) 225-6312

Serving the following Alabama cities and counties:
Birmingham, Mobile, Montgomery, Huntsville, Tuscaloosa, Gadsden, Florence, Anniston, Guntersville, Decatur, Jasper -- Autauga, Baldwin, Barbour, Bibb, Blount, Bullock, Butler, Calhoun, Chambers, Cherokee, Chilton, Choctaw, Clarke, Clay, Cleburne, Coffee, Colbert, Conecuh, Coosa, Covington, Crenshaw, Cullman, Dale, Dallas, DeKalb, Elmore, Escambia, Etowah, Fayette, Franklin, Geneva, Greene, Hale, Henry, Houston, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Lee, Limestone, Lowndes, Macon, Madison, Marengo, Marion, Marshall, Mobile, Monroe, Montgomery, Morgan, Perry, Pickens, Pike, Randolph, Russell, Shelby, St. Clair, Sumter, Talladega, Tallapoosa, Tuscaloosa, Walker, Washington, Wilcox, Winston

Serving the following Arkansas cities and counties:
Little Rock, Fort Smith, North Little Rock, Fayetteville, Jonesboro, Pine Bluff, Springdale, Conway -- Arkansas, Ashley, Baxter, Benton, Boone, Bradley, Calhoun, Carroll, Chicot, Clark, Clay, Cleburne, Cleveland, Columbia, Conway, Craighead, Crawford, Crittenden, Cross, Dallas, Desha, Drew, Faulkner, Franklin, Fulton, Garland, Grant, Greene, Hempstead, Hot Spring, Howard, Independence, Izard, Jackson, Jefferson, Johnson, Lafayette, Lawrence, Lee, Lincoln, Little River, Logan, Lonoke, Madison, Marion, Miller, Mississippi, Monroe, Montgomery, Nevada, Newton, Ouachita, Perry, Phillips, Pike, Poinsett, Polk, Pope, Prairie, Pulaski, Randolph, St. Francis, Saline, Scott, Searcy, Sebastian, Sevier, Sharp, Stone, Union, Van Buren, Washington, White, Woodruff, Yell

Airplane Crash | Catastrophic Injury | Commercial & Business Litigation | Dangerous and Defective Drugs | Defective Products | False Claims Act / Qui Tam / Whistleblower | Medical Malpractice | Motor Vehicle Accidents | Nursing Home Abuse and Neglect | Personal Injury |  Premises Liability | Securities Fraud | Tire Tread Separation | Wrongful Death

The recoveries, verdicts, favorable outcomes, and testimonials described on this site are not an indication of future results. Every case is different, and regardless of what friends, family, or other individuals may say about what a case is worth, each case must be evaluated on its own facts and circumstances as they apply to the law. The valuation of a case depends on the facts, the damages, the jurisdiction, the venue, the witnesses, the parties, and the testimony, among other factors. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.