Judge Recuses Herself From Moehrl Case, Citing Conflict of Interest

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Chicago, IL – Judge Andrea R. Wood, who had been presiding over the high-profile Moehrl case for several years, recused herself from the case on Wednesday due to a conflict of interest. Wood disclosed that a relative’s spouse was a partner at a law firm representing a defendant in the case, prompting her decision to step down. The recusal comes after years of handling commission lawsuits, including the notable Moehrl, Batton I, and Batton II cases.

In her one-page filing, Wood explained, “It has come to my attention that the spouse of a person related to me within the third degree of relationship is a partner in a law firm representing a defendant in this case.” While she emphasized that the relationship did not influence her decisions, she acknowledged that under the Code of Conduct for United States Judges, recusal was required.

The Moehrl case, which began under Wood’s oversight in March 2019, has targeted the real estate industry’s compensation practices. Plaintiffs argued that certain rules set by the National Association of Realtors (NAR) — specifically, the Cooperative Compensation Rule — violated the Sherman Antitrust Act by inflating seller costs. As a result, multiple settlements were reached with real estate giants like RE/MAX, Keller Williams, and HomeServices of America, collectively paying out nearly $1 billion to plaintiffs.

Part of the settlements requires significant changes in the real estate industry. By August 17, all references to seller-offered compensation to buyer brokers were removed from Realtor-affiliated multiple listing services (MLS), and buyer’s agents are now mandated to secure written representation agreements before showing homes.

The recusal of Judge Wood marks a critical moment in the ongoing legal battles that have reshaped real estate practices across the country. A new judge will soon be assigned to the case, as the industry continues to adapt to the rules brought about by the settlements.