{"id":3538,"date":"2022-09-29T18:51:22","date_gmt":"2022-09-29T18:51:22","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2022\/09\/29\/nar-petitions-supreme-court-on-pocket-listing-case\/"},"modified":"2025-03-13T02:47:09","modified_gmt":"2025-03-13T02:47:09","slug":"nar-petitions-supreme-court-on-pocket-listing-case","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2022\/09\/29\/nar-petitions-supreme-court-on-pocket-listing-case\/","title":{"rendered":"NAR petitions Supreme Court on pocket listing case"},"content":{"rendered":"\n<p>In its latest <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/nars-silence-on-lawsuits-frustrates-agents\/\" target=\"_blank\" rel=\"noreferrer noopener\">legal move<\/a>, the <strong>National Association of Realtors<\/strong> (NAR) has petitioned the U.S. Supreme Court to overturn a lower court\u2019s ruling on the trade group\u2019s pocket listing ban.<\/p>\n\n\n\n<p>In a writ of certiorari filed jointly on Sept. 23 with <strong>BrightMLS<\/strong>, <strong>California Regional MLS<\/strong> (CRMLS) and <strong>Midwest Real Estate Data<\/strong> (MRED), NAR asks the Supreme Court to review a ruling by the Ninth U.S. Circuit Court of Appeals made in April.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/court-revives-challenge-to-pocket-listings-ban\/\" target=\"_blank\" rel=\"noreferrer noopener\">April ruling<\/a> overturned a lower court\u2019s decision to throw out a case filed by former pocket listing service <strong>The PLS<\/strong>, <a href=\"https:\/\/www.inman.com\/2022\/02\/24\/were-not-the-pocket-listing-guys-anymore-the-pls-is-now-the-nls\/\" target=\"_blank\" rel=\"noreferrer noopener\">now known as <strong>The NLS<\/strong><\/a>(it is still referred to as &#8220;The PLS&#8221; in legal filings), allowing the case to proceed.<\/p>\n\n\n\n<p>In the initial lawsuit, The PLS alleged that NAR and the other defendants had violated the Sherman Antitrust Act and California\u2019s Cartwright Act for adopting a policy known as the Clear Cooperation Policy. This policy requires listing brokers to submit a listing to their MLS within one business day of marketing a property to the public.<\/p>\n\n\n\n<p>In addition to attracting attention form The PLS, <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/doj-probes-nar-pocket-listings-ban\/\" target=\"_blank\" rel=\"noreferrer noopener\">this policy piqued the interest of the U.S. Department of Justice<\/a>, which is currently investigating NAR over the CCP and other rules.<\/p>\n\n\n\n<p>As is standard practice, four of the nine justice on the Supreme Court must vote to accept a case. According to the federal government, the Supreme Court typically only agrees to hear a case if it \u201ccould have national significance, might harmonize conflicting decisions in the federal Circuit courts, and\/or could have precedential value.\u201d Each year, the court accepts just 100-150 of the more than 7,000 cases it receives.<\/p>\n\n\n\n<p>In its petition, NAR, the country&#8217;s largest lobbyist, writes that the Ninth Circuit court\u2019s decision to overturn the dismissal of The PLS\u2019s case was \u201ccontrary and erroneous.\u201d In addition, the trade organization wrote that the decision was not line with prior case law, \u201csowing confusion and inviting future courts to ignore or misapply fundamental principles of antitrust law.\u201d<\/p>\n\n\n\n<p>The petition also states: \u201cIf left to stand, the Ninth Circuit\u2019s ruling will subvert antitrust law and benefit alleged conspirators to the detriment of consumers and lawful competition.\u201d<\/p>\n\n\n\n<p>NAR\u2019s filling asks the Supreme Court to consider whether a court can decide not to analyze both sides of a market, contrary to NAR\u2019s interpretation of previous case law, and whether a competitor can establish the legal right to sue based on harm to alleged members of the conspiracy, given that The PLS\u2019s amended complaint asserts that brokers, as members of NAR, conspired to adopt the Clear Cooperation Policy.<\/p>\n\n\n\n<p>In regard to the first question, NAR considers the relevant market to be MLSs as \u201ca home-listing platform for buyers and sellers\u201d and therefore argues that the plaintiffs must allege a plausible injury to participants on both sides of the real estate market \u2014 not just to sellers, but also to buyers. However, The PLS and the DOJ feel that The PLS should not have to argue that the CCP harms consumers or buyers in order for the antitrust case to go forward.<\/p>\n\n\n\n<p>With regard to the second question, NAR write in the petition: \u201cBrokers are not the relevant consumers to assess whether the Clear Cooperation Policy reduces competition because, according to the Amended Complaint, brokers are co-conspirators. Any reduction of competition to them is legally irrelevant. Instead, buyers and sellers, as the first consumers outside the conspiracy, are the relevant consumers.\u201d<\/p>\n\n\n\n<p>In its ruling, however, the appeals court concluded that The PLS \u201cadequately alleged\u201d antitrust injury by alleging that the CCP was part of a group boycott to prevent The PLS from competing with MLSs, resulting in agents having fewer choices, inflated prices and lower-quality products.<\/p>\n\n\n\n<p>\u201cThis petition seeks to preserve the ability to provide the most information and the best possible market for buyers and sellers of home real estate,\u201d Mantill Williams, NAR\u2019s vice president of communications, wrote in an emailed statement. \u201cAfter originally dismissing this case, a federal Judge noted in his opinion that the Clear Cooperation Policy (CCP) provides consumers with &#8220;\u2019access to more information regarding market conditions, enabling them to make better informed choices about the bundle of real estate brokerage services that will best serve their needs.\u2019\u201d As a leading advocate for homeownership, NAR determined that CCP was needed as a crucial protection for consumers, and it was overwhelmingly adopted. It ensures that publicly marketed property listings are widely available and accessible to all consumers\u201d<\/p>\n\n\n\n<p>It remains to be seen if the Supreme Court will grant cert and review the case. According to the filing, The PLS had until Oct. 27 to respond to NAR\u2019s petition.<\/p>\n\n\n\n<p>At the time of publication, requests for comment from CRMLS, MRED and The PLS had not been returned. BrightMLS declined to comment on the matter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NAR filed a writ of certiorari with the Supreme Court seeking review of a lower court&#8217;s decision on the groups pocket listing ban.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>NAR petitions Supreme Court on pocket listing case - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"NAR filed a writ of certiorari with the Supreme Court seeking review of a lower court&#039;s decision on the groups pocket listing ban.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtrends.com\/blog\/2022\/09\/29\/nar-petitions-supreme-court-on-pocket-listing-case\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NAR petitions Supreme Court on pocket listing case\" \/>\n<meta property=\"og:description\" content=\"NAR filed a writ of certiorari with the Supreme Court seeking review of a lower court&#039;s decision on the groups pocket listing ban.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realtrends.com\/blog\/2022\/09\/29\/nar-petitions-supreme-court-on-pocket-listing-case\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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