Demetres v. Zillow, Inc.

CourtDistrict Court, D. Connecticut
DecidedJuly 30, 2024
Docket3:21-cv-00802
StatusUnknown

This text of Demetres v. Zillow, Inc. (Demetres v. Zillow, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Demetres v. Zillow, Inc., (D. Conn. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT

AUDREY DEMETRES, Plaintiff,

v. No. 3:21-cv-802 (JAM)

ZILLOW, INC., Defendant.

ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

Audrey Demetres has filed a putative class action against Zillow, Inc. (“Zillow”) claiming that its website employs unfair and deceptive tactics. She seeks compensatory and punitive damages. Zillow has moved for summary judgment. For the reasons stated below, I will grant Zillow’s motion for summary judgment. BACKGROUND Zillow operates a website of real estate listings “designed to assist current and prospective homeowners in the process of buying and selling homes.”1 Each real estate listing on Zillow’s website contains an “Overview” section that includes the property’s listing agent.2 Each listing on Zillow’s website includes a “Contact agent” button.3 When a consumer clicks the “Contact agent” button, a pop-up window appears that requests the consumer’s information.4 The pop-up window includes a disclosure, which reads in relevant part: “By

1 Doc. #77 at 1 (¶¶ 1–2). 2 Id. at 2 (¶ 8). Demetres denies this fact, contending that this information “is obscured in its presentation and configured in such a way as to mislead prospective home buyers to first select the . . . ‘Contact agent’ button.” Ibid. But “a responsive statement of material facts that contains argument, legal conclusions, personal belief, and speculation is inappropriate.” Wallace v. Sharp, 2022 WL 428102, at *3 (D. Conn. 2022). Where a “plaintiff’s Local Rule 56(a)(2) Statement contains inappropriate responses,” a court “will deem admitted certain facts within [defendant’s] Local Rule 56(a)(1) Statement that are supported by the evidence in accordance with Local Rule 56(a)(1) for the purposes of resolving this motion.” Ibid. Accordingly, I will deem this fact admitted because it is supported by evidence in the record. See Doc. #67-1 at 2 (property listing on Zillow’s website that includes a listing agent under the “Overview” heading). 3 Doc. #77 at 3 (¶ 11). 4 Id. at 3 (¶ 12). pressing Contact agent, you agree that Zillow Group and its affiliates, and real estate professionals may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices. . . . Zillow does not endorse any real estate professionals.”5 A real estate listing on Zillow’s website may also include a “Zestimate.”6 A Zestimate is Zillow’s estimate of a property’s value.7 When a consumer clicks on a property’s Zestimate, a

disclosure appears that includes the following: “The Zestimate is Zillow’s best estimate of this home’s market value. It is not an appraisal and it should be used as a starting point. Learn more.”8 The phrase “Learn more” is a hyperlink that, when clicked, directs to a separate page on Zillow’s website featuring additional information on the Zestimate, including the method of calculation, accuracy, and frequently asked questions.9 In June 2021, Demetres, a licensed real estate agent in Connecticut, initiated this putative class action for compensatory and punitive damages.10 She alleged claims under the Lanham Act, 15 U.S.C. § 1125(a), the Sherman Act, 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2, Connecticut Unfair Trade Practices Act (“CUTPA”), Conn. Gen. Stat. § 42-110a, and common law tortious interference with contractual relationships.11

5 Id. at 3–4 (¶ 13). The disclosure reads in full: “By pressing Contact agent, you agree that Zillow Group and its affiliates, and real estate professionals may call/text you about your inquiry, which may involve use of automated means and prerecorded/artificial voices. You don’t need to consent as a condition of buying any property, goods or services. Message/data rates may apply. You also agree to our Terms of Use. Zillow does not endorse any real estate professionals. We may share information about your recent and future site activity with your agent to help them understand what you’re looking for in a home.” Ibid. Demetres denies this fact, claiming consumers are “misled to select the . . . “Contact agent” button without realizing th[is] button[] will lead them exclusively to agents who have paid a fee to Zillow.” Id. at 4 (¶ 13). But such an argument, for the reasons outlined above, is insufficient to sustain a denial. See Martin v Town of Simsbury, 505 F. Supp. 3d 116, 125 (D. Conn. 2020) (collecting cases). Accordingly, I will deem this fact admitted because it is supported by evidence in the record. See Doc. #67-3 at 2 (“Contact agent” pop-up window displaying the disclosure). 6 Doc. #77 at 4–5 (¶ 17). 7 Id. at 5 (¶ 18). 8 Id. at 5 (¶ 21). 9 Id. at 5 (¶ 22). 10 Doc. #1; Doc. #77 at 6 (¶ 29). 11 Doc. #5 at 18–21. Demetres claims that property sellers and buyers “have broken their agreements with [her]” because of Zestimates.12 She also alleges that the “Contact agent” button and Zestimates were deceptive and misleading.13 In September 2021, Zillow moved to dismiss.14 In a September 2022 ruling, Judge Arterton dismissed Demetres’ Lanham Act and Sherman Act claims.15 See Demetres v. Zillow,

Inc., 2022 WL 4367597, at *8, *10–11 (D. Conn. 2022). After over a year of discovery, the parties agree that Demetres’ claims “are limited to the ‘Contact agent’ button and Zestimates contained on Zillow’s website.”16 As to Demetres’ claims involving the “Contact agent” button, it is impossible to know whether consumers clicking the button would be interested in purchasing the corresponding property.17 Similarly, it is “impossible to quantify the potential number of ‘lost leads’ and determine whether these ‘lost leads’ could have resulted in a potential client and an actual closed transaction for” Demetres.18 Demetres concedes that she would require an “economic damages expert” to calculate what, if any, damages she sustained from “lost leads.”19 She has not retained

the expert she claims she needs. As to Demetres’ claims involving Zestimates, she has not identified any buyers who broke their agreements with her because of a Zestimate.20 Rather, she seeks damages only from three listing agreements she had with sellers.21

12 Id. at 10 (¶ 37). 13 Id. at 8–9 (¶¶ 34–35). 14 Doc. #7. 15 Doc. #21 16 Doc. #77 at 7 (¶ 34). 17 Id. at 7 (¶ 35). 18 Id. at 8 (¶ 37). 19 Id. at 8 (¶ 38). 20 Id. at 8 (¶ 40). Moreover, Demetres admitted that she did not make agreements with buyers before an offer was made on a property. Id. at 8 (¶ 39). 21 Id. at 8 (¶ 40). First, she seeks damages for a December 2019 listing agreement regarding a property located at 6 Terra Nova Circle in Westport, Connecticut (the “Terra Nova” property).22 On December 13, 2019, the Zestimate for the Terra Nova property was $957,199.23 That same day, Demetres entered into a listing agreement with the Terra Nova property owner, specifying a higher listing price of $1,149,000.24 Demetres described this transaction as “very, very difficult”

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Demetres v. Zillow, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/demetres-v-zillow-inc-ctd-2024.