Battle over mandatory NAR membership heads to appeals court
NAR was on a winning streak in July as three lawsuits naming the association as a defendant were dismissed. All of those dismissals are now being challenged.
A Texas lawsuit challenging mandatory membership policies that was dismissed last month will now be heading to the U.S. Court of Appeals for the Fifth Circuit. The case is the third involving the National Association of Realtors that was dismissed in July and is now being appealed.
How we got here: Broker/owner Lou Eytalis — who first brought the case against NAR, the Texas Association of Realtors, Wichita Falls Association of Realtors and Paragon MLS Connect in November 2024 — filed the appeal on Aug. 18 in the U.S. District Court for the Northern District of Texas. The appeal was brief, noting that it was challenging Judge Reed O'Connor's July 22 dismissal of all claims and overruling of the plaintiff's objection.
The antitrust case alleges that the defendants engaged in monopolistic practices by requiring brokers to join multiple associations as a precondition for access to MLS services. In a January interview with Real Estate News, Eytalis said membership policies were just one example of NAR "overreaching," alleging that the association's rules were negatively impacting her business as a broker with around 30 agents in Texas and Oklahoma.
A summer of appeals: This is the third case naming NAR as a defendant that has been appealed in the past month. The organization scored initial court victories involving a similar mandatory membership case in Pennsylvania and an antitrust case brought by Homie Technology.
The Homie Technology case was appealed to the Tenth Circuit on Aug. 7, while the Pennsylvania case brought by broker Maurice Muhammad was appealed to the Third Circuit last week, according to paperwork filed with the court on Aug. 11.
What NAR had to say: In an emailed statement, a NAR spokesperson said they believe the courts correctly dismissed the claims.
"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. We will continue to make our case on appeal in each instance," the spokesperson said.