NAR D.C. Circuit Petition Update
Update from Katie Johnson, NAR Chief Legal Officer and Chief Member Experience Officer
I am writing to share an update regarding our ongoing dispute with the Department of Justice (DOJ) regarding its ability to reopen a previously closed investigation into NAR’s policies.
This dispute with the DOJ is separate from and does not affect NAR’s March 15 Settlement Agreement related to private class action litigation that, if approved, would resolve nationwide litigation over claims from home sellers related to broker commissions.
Friday, July 12, 2024, we received word that the United States Court of Appeals for the D.C. Circuit has denied our petition for rehearing. This is a disappointing outcome, and we maintain that its decision in this matter stands in opposition to years of precedent on the interpretation of government contracts and the bedrock principle that the government must honor its word.
You may recall we reached an agreement in 2020 to end an investigation into certain NAR policies—including the cooperative compensation rule and clear cooperation policy—provided that NAR implement four key rule changes. NAR began implementing the terms of the agreement in good faith. Eight months later the DOJ resumed that same investigation, violating our agreement. We subsequently asked the D.C. District Court to prohibit the DOJ from pursuing its investigation. While the D.C. District Court ruled in our favor, DOJ appealed that decision, and it was subsequently reversed by the D.C. Circuit in a 2-1 split decision.
In NAR’s petition filed on May 20, 2024, we outlined the far-reaching implication the D.C. Circuit court’s ruling could have, as it directly conflicts with precedent on these types of contractual issues. Anyone who finds themselves in a negotiation with the government could be impacted.
We are currently evaluating all remaining legal pathways that are available to us. We are committed to continuing to forcefully advocate for the interests of our members, home buyers, and home sellers and exploring all opportunities to hold the DOJ to the terms of our 2020 agreement. We will keep you informed as NAR Leadership decides on next steps. At the same time, NAR continues to focus on its mission to promote the value of REALTORS® and access to homeownership.
It is important to underscore that this dispute focuses only on DOJ’s ability to unilaterally withdraw from its 2020 settlement agreement with NAR, it does not address any of the Department’s claims about NAR policies or antitrust topics.
As always, if you have any questions, please don’t hesitate to reach out.
