Reprinted from Briefings: News From and About the People of Nelson Mullins Riley & Scarborough LLP

Atlanta partner Richard Hines along with partner Ken Millwood and associate Jeff Mapen is representing GMAC Real Estate LLC in a breach of contract case against Metrobrokers Inc., metro Atlanta’s sixth-largest residential real estate company, in federal court in Atlanta. The two recently ended a long-standing affiliate agreement.

Founded in 1979, Metrobrokers owns and operates 26 offices with more than 2,100 licensed real estate professionals in the metro Atlanta region and North Georgia mountains. The two companies have had a franchise agreement in place since Oct. 1, 2004. In late 2008, Metrobrokers stopped paying GMAC the fees required under the agreement, GMAC claims in its suit.

The companies "entered in to a series of discussions in an attempt to give some relief" to Metrobrokers for the fee payments "in light of the depressed state of the real estate market," the suit says.

In April, Metrobrokers and GMAC appeared to be headed toward agreement, but GMAC then learned Metrobrokers was negotiating with competitors about joining one of their network franchises. GMAC, which will soon change its name and become known as Real Living, has been pursuing equitable relief in the federal courts and will soon be involved in a large arbitration proceeding seeking to recover damages as a result of Metro’s early termination of the franchise agreement and its non-payment of monthly fees it is contractually obligated to pay GMAC.

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