Announced in early April, Zillow’s listing access standards policy bans listings from its site if they have been publicly advertised for more than one business day before being input into the MLS and made available for display on IDX and VOW websites.
The two parties just concluded expedited discovery regarding Compass’s motion for a preliminary injunction blocking Zillow from enforcing the policy. Earlier this month, Zillow requested additional discovery related to Compass’s acquisition of Anywhere.
According to Judge Jeannette A. Vargas, who is overseeing the suit in U.S. District Court in New York City, “much of the requested discovery is too attenuated from the issues to be decided in connection with the pending preliminary injunction motion to justify reopening discovery.”
Despite these feelings, Judge Vargas wrote that she does believe “certain discrete categories of documents are potentially relevant.” These categories include disclosures Compass made to Anywhere regarding this lawsuit or the impact it anticipates Zillow’s policy having on Compass, as they “bear directly on the issue of irreparable harm.”
Due to this, Judge Vargas is allowing Zillow to request three classes of documents from Compass. These include disclosures made during the acquisition related to Zillow’s listing access standards, all communications regarding the current or expected future impact of the policy on Compass’s business and the value of its stock, and all communications regarding this lawsuit sent between Compass and Anywhere.
While Judge Vargas is allowing for these document production requests, she denied Zillow’s request for an additional two-hour deposition of Compass CEO Robert Reffkin.
The parties are scheduled to participate in a hearing related to Compass’s motion in mid-November. However, on Monday, Zillow filed a letter with the court claiming that based on the evidence and testimony gathered by Compass during expedited discovery, a hearing is not necessary as it feels Compass’s claims do not hold up.