Century 21’s False-Advertising Claims Dismissed : Courts: Real estate giant had complained that several of rival ReMax’s franchises deceptively touted better sales and service.

A federal judge has dismissed real estate giant Century 21 International’s allegations that several of competitor ReMax International Inc.’s local franchises made false advertising claims.

Century 21, based in Irvine, sued three ReMax franchises, including ReMax South County in Newport Beach, in early 1993 over an advertising campaign in which the offices maintained they were leaders in their markets.

But U.S. District Judge Alicemarie H. Stotler on Dec. 20 dismissed most of Century 21’s complaints, saying they had no merit.

A Century 21 spokeswoman said Thursday that the company plans to appeal the ruling. She said the judge did not address Century 21’s broader allegation that ReMax engages in false advertising when asserting that it has more sales and better customer service than other residential real estate brokers.

Meanwhile, ReMax, based in Denver, is suing Century 21 as part of the same case, alleging that it used inaccurate surveys to bolster its own claims of being No. 1.

Trial on that portion of the case is to begin in April in U.S. District Court in Santa Ana.

Major real estate chains such as Century 21 and ReMax are zealously protective of their performance claims because they see them as their main marketing tool in a residential market that has leveled off to about 3.8 million transactions a year.

With the aging of the baby-boom generation, which fueled that growth, the market is expected to begin shrinking shortly after the end of the decade--a situation that has residential real estate brokers scrambling to remain competitive.

ReMax Chairman David Liniger said that Judge Stotler’s Dec. 20 ruling, made public Thursday by ReMax, applies to Century 21’s challenges to a number of ReMax TV commercials, an ad in an industry journal, statements about ReMax sales leadership printed in company newsletters and statements made by Liniger at his company’s annual convention in 1993.

One of four ReMax TV spots challenged in the Century 21 lawsuit was not included in Stotler’s summary judgment in favor of ReMax. Liniger said the company is filing a separate motion for dismissal.