Appeals Court Upholds Dismissal of NAR Suit
A Texas broker failed to sufficiently allege an antitrust injury in a challenge to association membership rules for MLS participation, an appeals court found.
A federal appeals court upheld the dismissal of an antitrust lawsuit challenging association membership rules for participation in a Texas multiple listing service, according to the National Association of Realtors.
The U.S. Court of Appeals for the 5th Circuit found that broker Luz De Amor Eytalis had not sufficiently alleged an antitrust injury, NAR reported.
Eytalis sued NAR, the Texas Association of Realtors, the Wichita Falls Association of Realtors and Paragon MLS Connect. She alleged that requiring association membership to participate in the Wichita Falls association’s MLS violated federal antitrust law and Texas law.
The appeals court left intact the lower court’s dismissal of the federal claims with prejudice, meaning they cannot be refiled. The state claims were dismissed without prejudice after the lower court declined to exercise jurisdiction over them.
NAR said it welcomed the decision and defended its membership structure connecting local, state and national associations. The association said membership is voluntary and that the structure remains lawful.
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