Inside the JLL Lawsuit That Every Real Estate Brokerage is Watching

Abstract

The landlord said JLL didn't follow the proper protocols for disclosing dual representation, since the firm represented both the tenant and the landlord and didn't call proper attention to it in lease documents. A U.S. District Court judge ruled in March 2022 that JLL's improper disclosure of dual representation made the leasing agreement unenforceable, so the landlord wasn't required to pay the commission the brokerage says it's owed. The lease documents for the transaction did mention JLL's dual representation, but they didn't include any emphasis, confidential information language, or client signatures. In recent years dual agency has come under increasing scrutiny, especially as top brokerages like JLL, Cushman & Wakefield, and CBRE continue to grow and command such a large share of transactions. A technical knockout How the JLL dual agency lawsuit plays out in Washington, D.C., will be watched closely by the commercial real estate industry. If JLL loses the appeal, it will set a legal precedent that allows tenants and landlords in D.C. to sue over technical noncompliance with dual agency disclosure and withhold commissions. Brokers in Washington, D.C., and maybe even elsewhere in the U.S. have been spooked enough by the JLL lawsuit that dual representation may be a more scrutinized part of real estate deals in the years ahead..