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Judge Orders Century 21 Ad Change : Real estate: As the result of a competitor’s complaint, the O.C.-based company must back off its claim of selling a home every minute.

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TIMES STAFF WRITER

Looks like it’s time for Century 21 to get a new watch. A federal judge ruled this week that the national real estate franchise chain does not “sell a home every minute of the day,” as some of the company’s advertising says. Instead, the boldest claim that the Irvine-based real estate franchise company can make is that it “helps sell a home on average every minute” of the day, said U.S. District Judge Alicemarie H. Stotler, who granted a preliminary injunction last month to stop the Century 21 ads.

A complaint about the ads was filed by a major Century 21 competitor, Denver-based Re/Max International Inc., in the latest volley in a bitter battle between the two real estate giants.

Century 21 and Re/Max have sued each other over which is entitled to bill itself as the nation’s largest real estate franchise and whether Century 21 is rated No. 1 by homeowners, as it claims to be. The trial in at least one of the cases is expected to begin in Santa Ana early next year.

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“They’re just trying to damage us. It’s sleaze,” said Dick Loughlin, president of Century 21. “It’s Round One of a major lawsuit that will be coming to trial early next year that will be very interesting for the entire real estate industry.”

Loughlin said Century 21, a subsidiary of Metropolitan Life Insurance Co., will continue to run the “once a minute” advertisements but will alter the wording.

On July 18, Century 21 was cited for contempt of court for not obeying an injunction barring the ads. Loughlin said his company was waiting for the judge to clarify the court order.

As a result of the delay, Century 21 must pay Re/Max’s legal fees, estimated at $50,000, according to court documents.

Dave Liniger, chairman of Re/Max International, said he too is looking forward to the court battle and hopes the case will show the need for stronger advertising standards in the real estate industry.

This week’s court action “is a minor skirmish in a complex case that will continue for quite some time,” he said. “We’re pushing for the first possible trial date anyone will give us. We don’t think Century 21 is rated No. 1 by anyone.”

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The advertisements, many of which feature a watch, were run by the Pacific Division of Century 21. That operation includes about 100 franchises, most of them in Orange County. The ads appeared only in the Orange County and San Diego business journals during 1992 and 1993.

One ad read, “We sell a home a minute. Every minute. Of every day. Seven days a week. Fifty-two weeks a year. No one else can make that claim. No one else even comes close. No one in the world sells as many homes as the Century 21.”

Elizabeth Ellison, the owner of Century 21 Casa Grande in Santa Ana, said her franchise elected not to run the ads.

“I think our ads are the truth, but if Re/Max is going to get technical, we’re going to have to use the verbiage they want us to,” she said.

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