Louisiana Judge Dismisses Federal Antitrust and First Amendment Claims Against NAR Over MLS Access Rule
A federal lawsuit challenging the National Association of Realtors’ (NAR) long-standing “three-way agreement” requirement for Multiple Listing Service (MLS) access has been permanently dismissed in Louisiana. The ruling, issued by U.S. District Court Judge Shelly D. Dick, is the latest in a series of legal victories for NAR as it defends this foundational aspect of its membership structure.
The Lawsuit and Its Core Arguments
The complaint, filed in January 2025 by brokers Carla DeYoung and Carlos Alvarez and agents Tammy Jo Williams and Darlene Currie, targeted NAR, the Greater Baton Rouge Association of Realtors (GBRAR), the New Orleans Metropolitan Association of Realtors (NOMAR), ROAM MLS, and several individuals. The plaintiffs argued that NAR’s rule—which mandates that to join a local MLS, a real estate professional must also be a member of their local Realtor association and the state association—violated multiple laws.
Specifically, the 71-page complaint alleged the policy infringed upon First Amendment rights by compelling speech and association. It also claimed the rule violated the Fair Housing Act, the Federal Trade Commission Act, and the Sherman Antitrust Act by stifling competition and creating barriers to entry in the real estate market.
The Court’s Ruling and Its Scope
In her ruling on Wednesday, Judge Dick adopted the recommendation of a magistrate judge and permanently dismissed all federal antitrust claims and Fair Housing Act claims against NAR and the local association and MLS defendants (GBRAR, NOMAR, ROAM MLS, and Kenneth Damann). The dismissal of these federal claims is with prejudice, meaning they cannot be refiled.
The judge also dismissed the Sherman Antitrust Act and Fair Housing Act claims against Damann individually without prejudice. This allows the plaintiffs 21 days to file an amended complaint if they wish to pursue different or additional factual allegations against him. Action on the state antitrust claims was postponed, leaving those aspects of the case pending but narrowed.
NAR’s Defense and Broader Context
A NAR spokesperson expressed satisfaction with the decision, stating to Real Estate News, “We are pleased that the Court adopted the magistrate judge’s recommendation and dismissed the plaintiff’s federal claims.” The association reiterated its position that the three-way agreement supports “pro-competitive, pro-consumer local broker marketplaces,” which local associations may offer as a member benefit.
The spokesperson noted that “each local MLS sets its own requirements,” referencing significant rule changes NAR implemented at its NXT conference in November 2024. Those revisions, which followed the conclusion of the landmark Burnett v. NAR settlement, addressed other MLS access policies but left the core three-way agreement structure intact.
NAR CEO Nykia Wright has been vocal in defending the model. In November 2024, she stated, “Some of you have heard rumblings of the challenging of the three-way agreement… it is our duty to make sure that people understand what happens at the local level, the state level and the national level… that there isn’t a cannibalization of services, but it really is working together.”
Pattern of Litigation and What Comes Next
This Louisiana dismissal follows similar federal court victories for NAR in Illinois, Pennsylvania, and Texas, where judges have also rejected challenges to the three-way agreement. However, the association continues to face active litigation on this front. Complaints alleging similar antitrust and constitutional violations are currently pending in Michigan, Maryland, and other jurisdictions.
The outcome in Louisiana narrows the legal battlefield but does not end the national debate. The three-way agreement remains a cornerstone of NAR’s organizational model, tying local MLS participation to broader association membership. Supporters argue it strengthens community engagement and professional standards, while critics contend it creates an unnecessary financial and associative burden that limits market competition.
For real estate professionals in Louisiana, the ruling means the existing requirement to join local and state associations to access their primary MLS remains legally intact for now. The plaintiffs’ option to amend their complaint against Damann within 21 days is the only remaining immediate procedural step in this particular case.
