Legal Case Summaries

Case summaries are provided for educational purposes only, and are not a substitute for legal advice by a licensed attorney in your jurisdiction. Case law may change over time, so be sure to confirm a case is still good law. 

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In McLain v. Real Estate Board of New Orleans, the U.S. Supreme Court addressed whether alleged real estate commission price-fixing was activity within the scope of interstate commerce sufficient to be challenged under the Sherman Antitrust Act. The Court held that a conspiracy regarding commissions can have the requisite effect upon interstate commerce to confer subject matter jurisdiction....

In McCarrick v. Polonia Federal S. & L. Ass'n, a federal District Court in Pennsylvania addressed alleged violations of 12 U.S.C. section 2607 (section 8 of the Real Estate Settlement Procedures Act of 1974 (RESPA)). The court held that the defendant was not liable for RESPA violations, as the actions taken by the plaintiff's real estate broker constituted services, not kickbacks,...

In State v. Hossan-Maxwell, the Supreme Court of Connecticut addressed list back agreements under the Connecticut State Antitrust Act. The court held that list back agreements constitute tying arrangements, which when coupled with other prerequisites, become per se violations of the Act.

In 1966, Hartnett recorded a "Declaration of Covenants and Restrictions" on parcels of...

In Hilgendorf v. Hague, the Supreme Court of Iowa addressed a dispute between a broker and a vendor regarding the vendor’s breach of a listing agreement. The court held that the vendor had the power, but not the right, to terminate the agreement, and that the broker could recover damages rather than a commission.

Hague owned tracts of land consisting of 200, 160, and 80 acres. In...

In Foster v. West Alexandria Properties, the district court addressed tying arrangements concerning the sale of condominiums and the use of a particular management company. The court held that a condominium unit and management service were one integrated product, so no tying arrangement or antitrust violation occurred.

In 1976, Foster and Lawson each purchased a condominium unit from...

In Wells v. Mobile Co. Board of REALTORS®, the Alabama Supreme Court considered whether agreements to arbitrate future disputes violate public policy. The case involved a commission dispute between sales associates.

Reeves and Powles, who both worked for Reeves Realty, Inc., filed a Request for Arbitration with the Mobile County Board of REALTORS® (Board)....

In Washington v. Tacoma-Pierce, Tri-City, & Spokane Bd. of REALTORS®, the Supreme Court of Washington addressed the State's challenge to restrictions on MLS access based on membership in a local Board of REALTORS® (Board). The court held that the State Attorney General could bring an antitrust action challenging that restriction under the state Consumer...

Illinois Appellate Court Confirms Arbitration Award Based Upon Statute's Procedure

In Schroud v. Van C. Argiris & Co., the Appellate Court of Illinois addressed procedural issues relating to a Board arbitration award. The appellate court affirmed the trial court's decision confirming the award.

A dispute arose between Van C. Argiris & Co. (Argiris) and Schroud,...

In Penne v. Greater Minneapolis Area Board of REALTORS®, the Eighth Circuit addressed boycott law and its applicability to the real estate brokerage industry. The court held that the defendants had not contracted, combined, or conspired to fix and maintain brokerage fees in violation of the Sherman Antitrust Act.

Penne was the president of Penne Realty, a Minneapolis real estate...

In Kendler v. Rutledge, the Appellate Court of Illinois addressed the fairness of disciplinary procedures followed by a Board of REALTORS®. The court held that the Board violated its own by-laws by allowing an Ethics Committee member to review the appeal of a decision in which he had previously participated.

Kendler was a licensed broker and member of the Evanston-North Shore Board...

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