Opinion

Compass, Inc. v. Real Estate Board of New York, Inc.

Court
District Court, S.D. New York
Filed
Dec 19, 2022
Cited by
0 cases
Authority
More cited than 27.6%

The opinion

USONUITTEHDE RSTNA DTIESST RDIICSTT ROIFC TN ECWOU YROTR K

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:

COMPASS, INC., et al., :

Plaintiffs, : 21 Civ. 2195 (LGS)

:

-against- : ORDER

:

REAL ESTATE BOARD OF NEW YORK, :

Defendant. :

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LORNA G. SCHOFIELD, District Judge:

WHEREAS, on December 9, 2022, Plaintiffs filed a letter regarding the voluntary

dismissal of this Action under Federal Rule of Civil Procedure 41(a)(2), seeking leave to dismiss

without prejudice. On December 16, 2022, Defendant and non-party NRT New York LLC d/b/a

The Corcoran Group (“Corcoran”) each filed a letter in response, opposing the request and

arguing that the dismissal be with prejudice. On December 19, 2022, Plaintiffs filed a further

letter, seeking leave to respond to allegations in Defendant and Corcoran’s letters.

WHEREAS, in considering requests for a voluntary dismissal without prejudice under

Rule 41(a)(2), “a court considers (1) the plaintiff’s diligence in bringing the [request], (2) any

undue vexatiousness on the plaintiff’s part, (3) the extent to which the suit has progressed, (4) the

duplicative expense of relitigation, and (5) the adequacy of the plaintiff’s explanation for the need

to dismiss.” Baiul v. NBC Sports, 708 F. App’x 710, 713-14 (2d Cir. 2017) (summary order).

“[D]ismissal without prejudice is improper if the defendant would suffer some plain legal

prejudice other than the mere prospect of a second lawsuit.” Id. (internal quotation marks

omitted).

WHEREAS, on the whole, these factors favor Plaintiffs. Plaintiffs cite “procompetitive

changes within the market” and “the withdrawal of certain complaints” as the basis for their

motion, which Defendant notes occurred no later than October 4, 2022. The former is not

reducible to a specific date and the time period between the withdrawal of the relevant complaints

before Defendant and Plaintiffs’ filing of this request does not disprove Plaintiffs’ diligence.

Corcoran alleges vexatiousness by virtue of Plaintiffs’ naming of Corcoran as a co-conspirator

with Defendant and Plaintiffs’ making of allegedly overbroad discovery requests. However,

listing the alleged participants in an antitrust conspiracy and negotiating over the scope of

discovery requests are standard aspects of litigation, rather than undue vexatiousness. As to the

progress of the suit, no party has moved for summary judgment -- nor could they reasonably do

so, as the parties have yet to produce documents. There is little risk of re-litigation because this

case is at an early stage. Finally, Plaintiff notes the withdrawal of certain complaints central to its

claims and larger shifts in the market, providing an adequate explanation for dismissal. Taken as

a whole, the factors weigh in favor of allowing the voluntary dismissal without prejudice.

WHEREAS, Defendant faces no legal prejudice as a result of Williams’ dismissal.

Defendant’s letter argues that Plaintiffs’ claims fail on the merits; however, these arguments do

not address how allowing Plaintiffs to withdraw those claims now would cause prejudice to

Defendant. It is hereby

ORDERED that, pursuant to Federal Rule of Civil Procedure 41(a)(2), this Action 1s

DISMISSED, without prejudice. Plaintiff's request for leave to file a further letter is denied as

moot.

The Clerk of Court is respectfully directed to close the motion at Dkt. 89 and to terminate

the case.

Dated: December 19, 2022

New York, New York

LORNA G. SCHOFIEL

UNITED STATES DISTRICT JUDGE

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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