Antitrust Lawsuit Over Mls Access Dismissed In California

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.