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U.S. District Court judge has dismissed a lawsuit filed by a Texas broker challenging the National Association of Realtors' (NAR) mandatory membership policies, which require brokers to pay multiple sets of dues for access to the Multiple Listing Service (MLS). Judge Reed O'Connor's decision on July 22 dismisses federal antitrust claims and state claims made by Lou Eytalis against NAR, the Texas Association of Realtors, Wichita Falls Association of Realtors, and Paragon MLS Connect.

    Eytalis' lawsuit alleged that the defendants engaged in monopolistic practices by requiring brokers to join multiple associations as a precondition for access to MLS services. The case also claimed these practices were discriminatory. However, U.S. Magistrate Judge Hal Ray, Jr. previously concluded that Eytalis cannot make a claim under the Clayton antitrust law because it does not apply to services, and she did not provide enough facts to constitute an antitrust injury.

    The dismissal is seen as a victory for NAR, which has faced similar challenges from agents and brokers in other states. In response to the dismissal, NAR stated that MLSs are operated at the local level and each determines individual participation requirements. The association emphasized its integrated structure provides value to members through a unified voice on policy issues, a uniform Code of Ethics, and professional development opportunities.

    The court's decision was based on earlier conclusions from Magistrate Judge Ray, who wrote that Eytalis' case did not meet the necessary criteria for relief under the Clayton Act or Sherman Act.