The suit focuses on The Agency’s new president, Rainy Hake Austin, and her contract with Compass, where she previously worked.
High-end Los Angeles-based brokerage The Agency accused Compass in a lawsuit Friday of illegally trying to prevent The Agency’s new president from soliciting Compass agents.
The suit, filed in federal court, focuses on Rainy Hake Austin, who joined The Agency in October. Austin previously worked at Compass, and the new lawsuit focuses on a provision in her contract with that company that prohibits solicitation — so, things like recruiting — of Compass agents.
The lawsuit alleges Compass tried to enforce that part of Austin’s contract in March.
However, The Agency’s lawsuit centers on two claims: First, that Austin didn’t actually break that provision in her Compass contract; and second, that the provision itself is illegal.
In a statement Friday, a spokesperson for The Agency told Inman that the company hired Austin “because of her extensive experience in the real estate industry, her leadership qualities, and her integrity and ethical principles.”
“Compass is threatening to violate Rainy’s rights by enforcing an illegal non-solicitation provision in her employment agreement,” the statement added. “This lawsuit is Rainy’s attempt to vindicate her rights as a California employee, and The Agency fully supports her efforts in doing so.”
Compass did not immediately respond to Inman’s request for comment Friday.