Descent into toxicity: Ernie Carswell's commissions lawsuit details cultural decay at Elliman

"The 11-page lawsuit, filed in Los Angeles County Superior Court late last month, said Carswell and his 15-person team's decision to leave Elliman for Sotheby's International Realty was due to the toxic corporate culture at the brokerage that threatened his professional reputation. On top of that, attorneys for Carswell accused Elliman of taking a little over $300,000 in commissions earned across seven deals."

"That provision references the Departing Agents section of Elliman's manual and specifies once agents decide to leave the firm, they agree to a commission split reduction to 50 percent on all deals in contract at the time of their departure. This policy is hidden within a voluminous policy manual where agents are unlikely to discover it, and it is imposed unilaterally on a take-it-or-leave-it basis without meaningful negotiation."

"Carswell's lawsuit indicated that his split on those seven deals was 95 percent, which would have earned him and his team $620,397.50. They instead received $316,126.50 based on the Departing Agents policy, according to the complaint."

Ernie Carswell and his 15-person luxury real estate team filed an 11-page lawsuit against Douglas Elliman in Los Angeles County Superior Court, claiming the firm wrongfully retained commissions when the team departed for Sotheby's International Realty. Carswell's team had seven deals in contract at departure, with an agreed 95 percent commission split worth $620,397.50. However, Elliman applied a Departing Agents policy buried in its manual that reduced splits to 50 percent, resulting in the team receiving only $316,126.50. The lawsuit alleges this provision was unconscionable, non-negotiated, and hidden within voluminous documentation. Carswell's attorneys claim breach of contract and unpaid commissions, citing toxic corporate culture as the reason for departure. Elliman's spokesperson countered that post-departure commission adjustments are standard industry practice handled through arbitration.

Read at therealdeal.com