On Monday, the U.S. Supreme Court declined to hear an appeal in a case that sought to hold brokerages liable for creating and using floorplans when marketing a home for sale.
Its refusal to weigh in means the lower court’s January ruling, which held that including floorplans in listings constituted “fair use,” continues to stand and brings seven years of litigation to a close.
A Case With National Significance
The decision signifies a major win for real estate brokerages and professionals, who often use floorplans for marketing, appraisals and other uses. The defendants in the case have received support from the National Association of REALTORS®’ Legal Action Program since the case’s inception in 2018.
NAR’s Legal Action Committee and Amicus Brief Advisory Board provided multiple rounds of funding assistance and several amicus briefs in support of the defendants over the years.
"This decision is great news for anyone looking to buy or sell their home," Wendell Bullard, chair of NAR’s Legal Action Committee says. "Floorplans are vital pieces of information for consumers, which is why the Legal Action Committee and Amicus Brief Advisory Board recommended supporting the brokerages from the very beginning. At the same time, this result provides protection from potential liability to real estate professionals everywhere when listing a house with a floorplan."
Floorplans Crucial Info for Consumers
The case involved architect Charles James, owner of “Designworks,” whose home design was used to build five homes between 1996 and 2001 and was registered with the U.S. Copyright Office in 2018.
Real estate professionals Jackie Bulgin and Susan Horak each listed a home that used James’ architectural design. Each prepared a floorplan for their respective listings, individually or through a contractor, and marketed the homes. The case centered on whether creating and displaying the floorplan of a copyrighted home design infringed on Designworks’ copyright.
In January, the 8th U.S. Circuit Court of Appeals ruled in favor of the brokerages.
In court, NAR explained how floorplans are crucial pieces of information for home sellers and buyers.
“Many home buyers rely on such floorplans in deciding whether to purchase a property, and their ability to secure financing for that transaction is often contingent on an appraisal that requires the submission of a floorplan as well,” an NAR amicus brief reads. “On top of that, many localities require homeowners to submit floorplans before they can renovate their property. And when it comes time to sell, many Americans expect they will be able to use floorplans as a marketing tool to potential buyers in order to secure the fairest deal possible.” This case now serves as precedent for other brokerages or agents who may face similar copyright claims.
