This week, a U.S. district judge dismissed an antitrust complaint brought by a Florida broker against the National Association of REALTORS®, nine local associations and six MLSs.
The broker, Jorge Zea, operates a low-cost brokerage in which sellers receive an MLS listing but limited brokerage services. Zea claimed that NAR and the codefendants conspired to target and suppress his business model.
In a motion to dismiss the suit, NAR attorneys noted that Zea’s complaint had acknowledged the associations’ pro-consumer and pro-competitive practices. The motion said there was no evidence of a conspiracy and that “plaintiff’s disparate and anecdotal concerns do not fit any antitrust framework.”
On Monday, U.S. District Court Judge William P. Dimitrouleas agreed, dismissing the lawsuit without prejudice. Dimitrouleas’s ruling followed a recommendation by Magistrate Judge William Matthewman. Both judges admonished Zea for improper use of AI, resulting in what Matthewman referred to as “AI-hallucinated law. While the [court] cases Plaintiff relies on do exist, the quotations, and even most of the legal concepts, are fake.”
Zea has until April 27 to refile his complaint. If he doesn’t do so, the case will be closed.
The dismissal is one of several antitrust actions—including lawsuits in Michigan, Pennsylvania, Utah and Texas—that NAR has successfully fought in the past year.
“We are pleased with the Southern District Court of Florida’s decision to adopt the Magistrate Judge’s recommendation to dismiss this case without prejudice,” NAR said in the statement released to the media. “As we have previously stated, the National Association of REALTORS® fosters a fair, transparent and competitive real estate marketplace. Steering is a prohibited practice under NAR policy and the REALTOR® Code of Ethics. The Code of Ethics is enforced by state and local REALTOR® associations, and the enforcement of MLS rules are handled by each MLS.”
