Recruiting Raid Leads to Long and Costly Legal Battle
Recruiting Raid Leads to Long and Costly Legal Battle.
(Mountain Lakes, NJ, July 5, 2018) — It was the sort of recruiting raid that’s routine in the real estate industry: In March 2015, 11 agents and a manager from Douglas Elliman’s office in Armonk, NY, abruptly resigned.
The agents defected to the William Raveis Real Estate office across the street.
What happened next, however, was anything but ordinary.
Douglas Elliman sued and, after a four-week trial William Raveis was ordered to pay $4.75 million to its rival.
While that sum later was reduced to $3.8 million, it’s a hefty enough figure to make brokers think twice about how they poach agents from competing companies.
"Raveis intentionally and purposefully recruited the office manager, [Lisa] Theiss, and had her remain in Elliman’s employ," the judge wrote, "while, with her assistance, Raveis recruited her subordinates."
This cautionary tale unfolds in the July issue of Real Estate Broker’s Insider. Click below to learn more about the Insider, the only news source exclusively for residential real estate brokers, owners, and managers.
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