Coldwell Banker Reaches $4.5M Employee Class Action Settlement

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

A California federal judge granted final approval to a proposed settlement agreement in the class action lawsuit accusing Coldwell Banker of improperly classifying real estate agents as independent contractors and failing to reimburse them for business expenses.

Lead plaintiff Ali Bararsani filed the Coldwell class action lawsuit alleging that from 2008 to the present, Coldwell Banker “willfully misclassified” real estate agents and associates working under Coldwell’s brokers as independent contractors and denied them benefits that they would have been entitled to had they been properly classified as employees, such as reimbursement for business related expenses.

The class action argued that Coldwell should not have classified their California real estate agents and associates as independent contractors because Coldwell allegedly exercised significant control over the work performed, required them to attend training, and designated where the proposed class could work.

Under the terms of the approved Coldwell Banker class action settlement, Coldwell will pay $4.5 million to end the class action lawsuit. Nearly 5,600 identified Class Members will also be certified under the terms of the settlement. Coldwell will pay $1.5 million in attorneys’ fees and $25,000 in costs.

Superior Court Judge William F. Highberger stated in his order issued last week that “[t]his court finds that the settlement appears to be the product of serious, informed, non-conclusive negotiations, has no obvious deficiencies, and does not improperly grant preferential treatment to any individuals.”

“Plaintiff recognizes the expense and length of continued proceedings necessary to continue the litigation against defendant through trial and possible appeals,” the judge continued. “Plaintiff has also taken into account the uncertainty and risk of the outcome of further litigation and the difficulties and delays inherent in such litigation.”

“Plaintiff is also aware of the burdens of proof necessary to establish liability for the claims asserted in the action and defendant’s defenses thereto,” stated the judge, who pointed out that the plaintiff maintains the claims in the class action have merit, but ultimately found that the settlement is fair and reasonable and in the best interest of all Class Members.

Judge Heighberger also pointed out the Coldwell Banker denies any wrongdoing in his order approving the Coldwell class action lawsuit settlement. “Defendant has denied and continues to deny each of the claims and contentions alleged by the Plaintiff and the Class Members in the Action,” said the judge in his order.

Recently, several other lawsuits have centered around the classification of real estate agents and associates as employees or independent contractors. Real estate agents and associates work under the supervision of a real estate broker and last year a misclassification lawsuit against Boston Pads LLC. was dismissed.

More information about the Coldwell Banker class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Ali Bararsani is represented by Majed Dakak and Maxwell M. Blecher of Blecher & Collins PC, Larry W. Lee of Diversity Law Group, and Dennis S. Hyun of Hyun Legal APC.

The Coldwell Banker Real Estate Employment Class Action Lawsuit Settlement is Ali Bararsani v. Coldwell Banker, Case No. BC495767, in the Superior Court of the State of California, County of Los Angeles.