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Glendale Board of Realtors v. Hounsell
Citations: 72 Cal. App. 3d 210; 139 Cal. Rptr. 830; 1977 Cal. App. LEXIS 1704Docket: Civ. 49895
Court: California Court of Appeal; July 29, 1977; California; State Appellate Court
The Court of Appeals of California, in the case Glendale Board of Realtors v. K.W. Hounsell, addressed whether the Glendale Board violated the Cartwright Act by denying nonmembers access to its multiple listing service. The court concluded that it did, referencing the precedent set in Marin County Bd. of Realtors, Inc. v. Palsson, which found similar anti-competitive practices to be violations of the Cartwright Act. The Glendale Board argued that the Palsson decision was inapplicable because it involved two anti-competitive practices, whereas only one was present in their case. However, the court clarified that Palsson evaluated each practice independently under the rule of reason, establishing that both constituted violations. The court noted that the non-access rule for nonmembers in Glendale has economic effects comparable to those in Marin County, as the Board's multiple listing service significantly enhances the inventory available to participating brokers, facilitating faster sales at potentially higher prices. The court reversed the trial court's ruling and ordered further proceedings consistent with its findings. The request for a Supreme Court hearing was denied on September 22, 1977. K.W. Hounsell, a licensed real estate broker and nonmember of the Board, is currently allowed temporary access to the Board's multiple listing service (MLS) during ongoing litigation, contingent upon his payment of related fees. Following the trial court's judgment, Hounsell's motion for a new trial based on the subsequent Palsson decision was unsuccessful. The focus of the proceedings is solely on liability; the issue of damages has not been addressed, with the trial court appropriately dismissing Hounsell's speculative evidence regarding damages. In a potential retrial, Hounsell may attempt to demonstrate damages incurred from his membership application date to when the MLS was made accessible to him. The Supreme Court's Palsson decision emphasized that access to the MLS is critical for nonmembers to compete effectively, and while exclusive benefits may be offered to members, nonmembers must be granted access, albeit with a reasonable fee aligned with operational costs. The Board's MLS is noted as the sole service of its kind in Glendale.