United States v. National Ass'n of Real Estate Boards
Headline: Court rules real estate boards’ agreements to fix broker commissions illegal under antitrust law, reversing the lower court and invalidating such fee schedules in the District of Columbia.
Holding: The Court held that agreements among local real estate boards to fix broker commissions are per se violations of the Sherman Act, reversing the district court except as to two national defendants left unaffected.
- Invalidates local real estate commission‑fixing agreements as antitrust violations.
- Allows civil enforcement and injunctions against fee‑fixing boards and brokers.
- Shows criminal acquittal does not bar later civil antitrust suits.
Summary
Background
The U.S. government sued local real estate boards in Washington, D.C., accusing them of agreeing to set uniform broker commission rates. The same conduct was the subject of an earlier criminal trial that ended in acquittal. After the criminal record was used in a civil trial, the District Court concluded the commission schedules did not violate the law and entered judgment for the boards, prompting this appeal.
Reasoning
The Court addressed whether agreements among brokers to set commissions fall within the Sherman Act’s ban on restraints of trade. It held that price‑fixing is unlawful per se and that selling services as a business counts as “trade.” The Justices reversed the District Court’s judgment, finding the commission‑fixing scheme illegal, but left intact the District Court’s finding that the national trade association and one executive were not proven to have joined the conspiracy.
Real world impact
The decision makes local real estate fee schedules vulnerable to antitrust enforcement and exposes boards and individual brokers to civil injunctions. The ruling also confirms that a prior criminal acquittal does not bar a civil antitrust suit because different proof standards apply. The ruling affects how trade associations draft and promote codes of ethics and fee guidelines.
Dissents or concurrances
Justice Jackson dissented, arguing brokers perform personal, advisory services similar to lawyers or doctors and that uniform broker fees should not automatically be treated as unlawful; he would have affirmed the lower court.
Opinions in this case:
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