Real Estate Industry update
Legal developments
Real Estate Industry update
Legal developments
January 14, 2025
INDUSTRY UPDATE
Real estate agents in Louisiana and Texas file lawsuits alleging that “tying arrangements” between the local, state and the National Association of Realtors violate the federal antitrust law
On January 2, 2025, Carla DeYoung, Tammy Jo Williams, Darlene Currie and Carlos Alvarez, all Louisiana real estate agents/brokers, filed a lawsuit without the assistance of an attorney (pro se) against Greater Baton Rouge Association of Realtors, New Orleans Metropolitan Association of Realtors, Bayou Board of Realtors, Greater Central Louisiana Realtors Association, ROAM MLS, Kenneth Daman, Registered Agent of ROAM MLS and the National Association of Realtors (“NAR”).
Their key allegations are:
1. Real estate agents who are not members of local, state, and national associations of realtors (collectively, “associations”) are denied access to the MLS (so-called “tying arrangements”).
2. MLS does not operate independent of the associations.
3. By limiting the visibility of how buyer agents are compensated, the rules promulgated by the associations undermine trust and hinder informed decision-making by the agents as well as the consumers.
4. Rules and policies of the associations violate the Fair Housing Act by discriminating against protected classes including minorities.
5. NAR entered the Sitzer Burnett settlement agreement without seeking input from its members.
6. The tying arrangements lessen competition and create monopolistic dominance, violating the Clayton Act.
7. The associations are in breach of contract with their members.
8. The associations violated the Federal Trade Commission Act.
They are seeking permanent injunction on tying arrangements, damages for emotional distress, and treble damages of no less than $10,000,000 for antitrust violations.
This lawsuit is similar to the Hardy lawsuit filed in Michigan in August 2024, discussed in our August 12, 2024 update here.
We have handpicked the key allegations in the 14-page DeYoung Complaint here.
The complete legal filing of the DeYoung Complaint, all 14 pages, can be found here.
A similar lawsuit was filed in Texas, by real estate broker Luz De Amor Eytalis against the National Association of Realtors, Texas Association of Realtors, Wichita Falls Association of Realtors and Wichita Falls Association of Realtors MLS (WFMLS). Eytalis claims violations of Sherman Antitrust Act, Clayton Act, Breach of Contract, and Unjust Enrichment.
A 6-page Complaint in this case, filed on January 7, 2025 alleging that the mandatory membership requirements in local, state and national realtor associations constitute unlawful “tying arrangement” can be found here.
