Re/Max Claims Rejected

A Superior Court jury has rejected claims that Re/Max International engaged in unfair competition against Century 21.

The jury deliberated three days last week before rejecting Century 21’s contention that Re/Max competed unfairly in the Southern California real estate market, Re/Max said Tuesday. The jury also ruled that Century 21, a subsidiary of HFS Inc., defamed Patrick Murphy, a former Century 21 employee who has since joined Re/Max, according to a company statement.

Jurors are deliberating whether Murphy deserves punitive damages from Century 21, the statement said.

Re/Max said a judge had already dismissed Century 21’s claims that Re/Max had used Century 21 trade secrets.

The 1993 suit was filed before Century 21 was acquired by HFS, said Richard A. Smith, chairman and chief executive of HFS Real Estate division. “It happened under a different watch. We weren’t involved,” he said. “It’s a distraction and we’re glad it’s out of the way.”

This is only the latest legal skirmish between the two real estate companies. There are pending lawsuits in federal court over some of Century 21’s advertising claims, Re/Max said.