In Ellis v. Tri-City Commercial Sales, Inc., the Court of Appeals of Georgia addressed an alleged conspiracy to deprive a brokerage of a commission. The court affirmed the award of actual and punitive damages, as it found: (1) the firm was the procuring cause of the sale, (2) it had a contractual right to commission, and (3) defendants engaged in a bad-faith attempt to deprive the brokerage of that commission.
In Edmund J. Flynn Co. v. LaVay, the District of Columbia Court of Appeals addressed a broker's claim of breach of contract against a developer. The court affirmed that no express contract existed but that, under express and implied-in-fact agency principles, the broker was due compensation for the value of his pre-sale marketing activities.
Asleson v. West Branch Land: North Dakota Supreme Court Reviews MLS Listing Errors and Determines Agent's Duty to Inform of Errors
In Asleson v. West Branch Land, the Supreme Court of North Dakota addressed the issue of constructive fraud regarding an MLS listing error in the context of a buyer and seller who were both members of the MLS. The court held that a listing agent has the duty to inform MLS users of errors in a listing and that a user of the service is entitled to rely on the information found therein.
American Invesco Realty v. Cent.21 Rother: Arbitration Awards Should Be Confirmed Immediately Upon Denial of Motion to Vacate
In American Invsco Realty, Inc. v. Century 21, Rohter & Co., the Appellate Court of Illinois reviewed the trial court's confirmation of a Board arbitration award. The appellate court held that Illinois law requires confirmation of an award whenever an application to vacate an award is denied.
US v. Realty Multi-List: Fifth Circuit Determines Reviews Membership Criteria Violates Antitrust Laws
In U.S. v. Realty Multi-List, the Fifth Circuit addressed membership criteria in relation to multiple listing services. The court held that the membership criteria of an MLS with market power will be deemed facially unreasonable unless justified by the legitimate competitive needs of the association, and narrowly tailored to that end.
Nestle Company v. J.H. Ewing & Sons: Georgia Court of Appeals Examines Procuring Cause in Commission Dispute
Nestle' named Coldwell Banker (Coldwell) as its exclusive agent to find a tenant for its commercial property. After the exclusive listing expired on June 1, 1977, the property was placed on an "open listing." On August 11, 1977, Coldwell, acting in concert with Allen Morris Company (AMC), another brokerage firm, showed the building to Scripto's vice-president for operations, Rawlins. Coldwell and AMC immediately registered Scripto with Nestle' as a prospective tenant.
MLS of Jackson v. Cent. 21 Cantrell Real Estate: Mississippi Supreme Court Upholds Board of REALTORS® Power to Discipline Members
In Multiple Listing Service of Jackson v. Century 21 Cantrell Real Estate, the Supreme Court of Mississippi addressed whether a private organization may discipline its members for violations of its standards of professional conduct. The court held that a voluntary association may discipline members, but that before a fine can be levied, there must be a schedule of maximum fines to which each member agrees to be bound.
McLain v. Real Estate Board of New Orleans: U.S. Supreme Court Holds That Alleged Real Estate Commission Price-fixing Could Effect Inter-State Commerce and Could Be Challenged Under the Sherman Antitrust Act
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, and there was no referral arrangement between the broker and the defendant.
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.