The

National
Association
of
Realtors (NAR)
is
getting
a
temporary
reprieve
from
the

latest
antitrust
suit
it’s
fighting
regarding
“three-way
membership
agreements”
for
MLS
access.

On
Monday,
the
complaint
filed
earlier
this
month
in
U.S.
District
Court
in
Los
Angeles
by
John
Diaz
was
dismissed
by
Judge
Dolly
Gee.

According
to
the
judge’s
ruling,
the
complaint
was
dismissed
as
it
did
not
comply
with
a
local
court
rule
which
requires
that
all
documents,
except
declarations,
to
be
signed
by
the
attorney
for
the
party
or
the
party
appearing
pro
se.
Diaz
is
representing
himself
pro
se.
Due
to
the
lack
of
compliance,
Judge
Gee
dismissed
the
complaint
with
leave
to
amend.
According
to
the
ruling,
Diaz
has
until
Dec.
9
to
file
an
amended
complaint
that
is
properly
signed
in
compliance
with
the
local
rules.

If
Diaz
does
not
refile
his
complaint
before
the
deadline,
his
claims
will
be
dismissed
without
prejudice.

Diaz
is
a
broker
at UHOO
Real
Estate
Services.
In
addition
to
NAR,
the
defendants
in
the
suit
include
the California
Association
of
Realtors (CAR),
the Lodi
Association
of
Realtors (LAR)
and MetroList
MLS. 

In
his
complaint,
Diaz
claimed
hat
the
defendants
“have
established
an
exclusionary
practice,
requiring
brokers
to
join
multiple
associations
(NAR,
CAR,
and
LAR)

to
gain
access
to
MLS
services
provided
by
MetroList,
which
are
essential
for
conducting
real
estate
transactions.”
It
goes
on
to
state
that
the
membership
requirement
“constitutes
an
unlawful
tying
arrangement,”
as
brokers
and
agents
“must
‘purchase’
association
memberships
they
may
not
need
or
want
to
obtain

MLS
services.”

According
to
Diaz,
the
three-way
membership
agreement
has
“created
an
anti-competitive
monopoly
over
MLS
services,
limiting
the
market’s
ability
to
support
alternative
trade
organizations,
thereby
stifling
competition
in
violation
of
the
Sherman
Act.”
The
plaintiff
also
claims
that
he
has
“experienced
a
significant
financial
burden”
due
to
the
membership
dues
and
MLS
fees,
which
he
said
have
“diminished
his
revenue
and
impeded
his
business.”

In
the
state
of
California,
it
is
illegal
for
an
MLS
to
require
Realtor
association
membership
it
order
to
access
the
MLS.

NAR
currently
faces
two
other
antitrust
suits
— Hardy and Muhammad —
that
involve
similar
allegations.
Additionally,
the Alabama
Association
of
Realtors sent
a
letter
to
NAR asking
it
to
end
the
three-way
agreement.

Related