Bring the Pain: Compass v. NWMLS Edition

This is a brief update, because the issue is small (though important) and the opinion is very short.

Ten days after filing its motion to dismiss, NWMLS filed a motion to stay discovery pending the outcome of that dismissal motion. This is commonplace since one of the things about lawsuits is that it allows your opponent to go through your documents, emails, meeting minutes, and so on and depose your people. Discovery can cost you millions in legal fees, and takes enormous amounts of time out of the day of your most senior executives, board members, other employees, and so on. Not to mention that it is never pleasant to be questioned by the lawyer on the other side under oath with a court reporter taking notes.

As I like to say, the process is the punishment. Even if you win at trial, having to go through a full discovery process is basically torture.

Well, the court in Compass v. NWMLS just issued an opinion denying NWMLS’s motion to stop the discovery process in its lawsuit against Compass. It’s very brief, but rather suggestive.

So while it’s brief, let’s take a look at it. Every single MLS ought to be consulting the lawyer about what this means.