Louisiana judge dismisses NAR 3-way agreement lawsuit
The ruling in the mandatory membership case ends most claims against NAR and local associations, but federal claims against an MLS exec could be refiled.
Key points:
- The lawsuit was filed in Jan. 2025 by Louisiana agents and brokers alleging that Realtor associations conspired to force agents to pay for three memberships in order to access the MLS.
- Federal claims against NAR, Louisiana Realtors and several state associations were dismissed, but the plaintiffs could file an amended complaint against GBRAR EVP Kenneth Damann.
- NAR has faced a wave of similar litigation, and has since stated that MLSs can allow access to non-Realtors — but its three-way agreement still stands.
More than 18 months after a wave of real estate agents began filing lawsuits against NAR and local Realtor associations over mandatory membership requirements and NAR's "three-way agreement" rule, one such case in Louisiana may be nearing a close.
Most — but not all — federal charges fully dismissed
Louisiana District Court Judge Shelly D. Dick on Wednesday granted a motion to dismiss federal antitrust charges against the Greater Baton Rouge Association of Realtors and its fellow defendants, including the National Association of Realtors, on allegations that the Realtor associations conspired to force agents to pay for three memberships in order to access data on the multiple listing service — while still leaving the door open to continued litigation.
Judge Dick dismissed all claims made under the Clayton Antitrust Act with prejudice, meaning they cannot later be refiled, and dismissed claims against Kenneth Damann — the registered agent for ROAM MLS and executive vice president of GBRAR — made under the Sherman Antitrust Act and Fair Housing Act.
The claims against Damann were dismissed without prejudice, however, meaning they can be refiled with modifications. The judge stipulated that plaintiffs have 21 days to file an amended complaint regarding those allegations.
Judge Dick also noted that an evaluation of the plaintiffs' state law claims was being deferred. If those claims stand, NAR and the other associations could end up back in court.
Three similar lawsuits against NAR were dismissed last year, but those rulings are currently being appealed.
Claims of anticompetitive practices, discrimination
In early 2025, agents and brokers Carla DeYoung, Tammy Jo Williams, Darlene Currie and Carlos Alvarez sued the Louisiana Realtors Association, several local associations and Kenneth Damann over their alleged anticompetitive practices.
The agents alleged that requiring them to pay for three memberships in order to access MLS data created barriers to running their real estate businesses. The complaint also alleged that the ongoing scandals and legal woes plaguing NAR at the time had caused reputational harm to agents working in the industry.
Plaintiffs further claimed that the associations' rules and policies, "enforced through tying arrangements," violated fair housing laws and created "discriminatory impacts on consumers," adding that those requirements "effectively discriminate against protected classes" and have a disproportionate impact on minority consumers.
NAR 'pleased' with result, emphasizes MLS autonomy
In a statement shared with Real Estate News, NAR said it was content with the judge's decision, while reiterating that local MLSs can determine who has access to their data — a policy NAR more clearly outlined in revisions to its MLS Handbook, announced at NAR NXT in November.
"We are pleased that the Court adopted the magistrate judge's recommendation and dismissed the plaintiff's federal claims," a spokesperson said in an emailed statement.
"As we have previously stated, NAR stands by the pro-competitive, pro-consumer local broker marketplaces, which local associations may choose to provide as a member benefit. Each local MLS sets its own requirements for determining access to the platform and for governing participants' conduct on the platforms."
An industry increasingly open to change
Over the past two years, NAR has faced growing criticism of its policies linking Realtor membership and MLS access, as well as its three-way agreement, which stipulates that agents who join a local Realtor association must also join their state and national associations.
While NAR has not revoked the three-way agreement, its emphasis on local MLS discretion over membership requirements reflects an industrywide shift. Many association and MLS leaders have spoken out about membership rules and data access, with some moving to offer more flexible membership options to agents. Alabama Realtors was among the first to take a public stand, asking NAR CEO Nykia Wright in Sept. 2024 to make NAR membership optional for agents who join their state or local associations.
On the MLS front, Chicagoland's MRED MLS voted earlier this month to make association membership optional, following a similar move by Unlock MLS last June.
Many association and MLS leaders expect the trend to continue. In a survey of organized real estate executives conducted late last year, 70% of respondents said they think it's likely that new membership models — such as a la carte services — will emerge this year, a position that reflects "a growing acceptance that the 'all-in' membership model is under threat," the report noted.
Note: This story has been updated to include information about state-law claims.