It’s been just over a month since real estate agent John Diaz refiled his lawsuit in U.S. District Court in Sacramento, but the National Association of Realtors (NAR), along with other state and local associations, are already asking the court to dismiss it.
On Monday, NAR and the California Association of Realtors, Lodi Association of Realtors, Central Valley Association of Realtors and Metrolist filed a motion to dismiss the suit.
In their motion, the defendants argue that Diaz has failed to allege direct harm as a result of their policies and that he lacks standing.
“Plaintiff’s attempt to contort his complaints about the dues formula into federal and state antitrust violations by invoking buzzwords and bare conclusions does not meet the threshold to survive a motion to dismiss,” the motion states. “Plaintiff has not pled any injury and for that reason he lacks standing. Plaintiff also fails to plausibly plead any antitrust claim.”
In his suit, Diaz claims that NAR, along with the other defendants, violated antitrust laws through its dues and membership structure.
Diaz initially filed his lawsuit in November 2024, representing himself pro se. The suit was dismissed within the same month. Diaz refiled his lawsuit last month but this time with legal counsel.
In its motion, NAR argues that Diaz’s claims are based on hypothetical impacts of the membership dues formula.
“(Diaz) does not allege that he has hired, or that he has been unable to hire, any non-member agents, and … fails to adequately plead payment of money or loss of opportunity that would constitute injury in fact for standing purposes,” read the filing. “Second, even if Plaintiff did have standing, his allegations do not state an antitrust violation.”
Additionally, the motion highlights that real estate licensees in California are allowed to belong to and access Realtor-owned MLSs without joining a Realtor association.
“The Complaint does not include a single factual allegation about which MLS is at issue, let alone how the Defendant associations control MLSs,” the motion states. “Fundamentally, Defendants are unable to discern the contours of Plaintiff’s antitrust claims, which must be dismissed.”
Diaz is one of several disgruntled real estate professionals across the country who have filed lawsuits against NAR over its membership structure, which typically requires members to join three levels of the association — local, state and national.
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