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The Michigan Association of REALTORS® ("MAR") has obtained a permanent injunction against individuals and their company who were operating what constituted a real estate brokerage business without the proper licenses.
In July 2001, MAR filed a complaint against Remark Consultants, Inc., a Michigan corporation, as well as against Remark principals Michael Helvey and Pamela Stawowy (collectively, "Remark"). In the complaint, MAR alleged that Remark was performing activities which required a real estate license, such as listing properties for sale; providing market analysis; and participating in the sale negotiations for properties. All of these activities required a Michigan real estate license. In the complaint, MAR sought a declaration that the actions of Remark were illegal, unlicensed activities in violation of Michigan's real estate license laws, and also sought the entry of an injunction prohibiting the Remark from performing these illegal actions in the future. MAR based its lawsuit on section 339.601 of Michigan statutes, which allows a person "affected" by violations of Michigan's occupational license laws to bring a suit for injunctive relief and, if successful, recover actual costs and attorney fees. The statutory definition of an "affected person" includes a "private association composed of primarily members of the occupation" for which an occupational license is required. MAR believes it is the first trade association to file a lawsuit using these statute sections.
Upon the filing of the complaint and a subsequent hearing, the Circuit Court for the County of Oakland initially entered a temporary restraining order against Remark prohibiting them from performing certain actions which would require a real estate license, including a prohibiting the use of a particular URL address and a phone number. This order also set a hearing date requiring Remark to appear and show cause why a permanent injunction should not be entered against them. The "show cause" hearing was held on August 15, 2001, after which the court entered a permanent injunction against Remark. Thus, Remark are permanently enjoined from performing any activities that require a real estate license.
Michigan Ass'n of REALTORS® v. Remark Consultants, Inc., No. 01-033616-CZ (Mich. Cir. Ct. August 15, 2001).
Editor's Note: NAR Legal Affairs would like to thank Dennis Koons, Chief Executive Officer of the Michigan Association of REALTORS®, for alerting us to this decision.