NAR faces appeal of Eytalis antitrust suit

by Brooklee Han

The National Association of Realtors (NAR) must face yet another appeal of a suit it was dismissed from earlier this summer. On Monday, plaintiff Luz de Amor Eytalis filed an appeal of the dismissal of her lawsuit against NAR, Paragon MLS Connect, Wichita Falls Association of Realtors and Texas Association of Realtors

The lawsuit, which claims that the defendants have violated the Sherman Antitrust Act by requiring membership in order to access the MLS, was examined by U.S. Magistrate Judge Hal R. Ray, Jr.

In early June, Ray recommended that since Eytalis did not state a claim upon which the court could grant relief for violation of the federal antitrust statute, the court should grant the remaining defendants’ motion to dismiss the suit. Judge Reed C. O’Connor of U.S. District Court in Wichita Falls, Texas, followed these recommendations and granted NAR’s motion to dismiss in mid- July.

Over the past two months, NAR has also been dismissed from the Homie Technologies antitrust suit and the Muhammad suit, which like Eytalis, deals with the three-way membership agreement. Homie appealed the dismissal of its suit earlier this month. It remains to be seen if plaintiff Maurice Muhammad will appeal his suit. 

In an emailed statement sent in conjunction with its dismissal from the suit, a spokesperson from the NAR noted that, “MLSs are operated at the local level and each MLS determines individual participation requirements.”

“Similar to other national membership organizations, NAR’s integrated structure is fundamental to the value we deliver to members. It provides members with a unified voice on policy issues, a uniform Code of Ethics, and valuable tools and professional development opportunities that help members get to, and execute, their next transaction more efficiently,” the spokesperson added.

In an emailed statement about the appeal, a NAR spokesperson wrote that the trade group believes the court was correct in dismissing the suit.

“NAR is focused on delivering unparalleled value to our members, developing resources that empower local associations and fostering a fair, competitive, and transparent real estate market,” the spokesperson added. “MLSs are, and always have been, operated at the local level, with each MLS determining individual participation requirements. We will continue to make our case on appeal.”  

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