Blake v. H-F Group Multiple Listing Service

345 N.E.2d 18, 36 Ill. App. 3d 730, 1976 Ill. App. LEXIS 2079
CourtAppellate Court of Illinois
DecidedMarch 1, 1976
Docket60280
StatusPublished
Cited by15 cases

This text of 345 N.E.2d 18 (Blake v. H-F Group Multiple Listing Service) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blake v. H-F Group Multiple Listing Service, 345 N.E.2d 18, 36 Ill. App. 3d 730, 1976 Ill. App. LEXIS 2079 (Ill. Ct. App. 1976).

Opinion

Mr. JUSTICE BURKE

delivered the opinion of the court:

This is an action brought under the Illinois Antitrust Act- (Ill. Rev. Stat, 1973, ch. 38, par. 60 — 1 et seq.) wherein the plaintiff has alleged that the defendants have violated subsections 3(1) and 3(2) of the Act. (Ill. Rev. Stat. 1973, ch. 38, pars. 60 — 3(1), (2).) The circuit court of Cook County, in a bench trial, found for the defendants on all counts and denied the plaintiff’s prayer for damages and injunctive relief. The plaintiff appeals contending that the trial court erred in finding that the defendants had not violated the Antitrust Act. The plaintiff contends that the defendants had unreasonably restrained trade by: (1) entering into an agreement not to deal with the plaintiff and other real estate brokers who were not members of the defendants’ multiple listing service, and (2) refusing membership in their multiple listing service to the plaintiff and other real estate brokers based upon certain membership requirements which the defendant alleges are unreasonable.

The evidence at trial revolved around the H-F Group Multiple Listing Service in which the four defendant real estate companies were the only members. There is little disagreement concerning the facts in the case. Any disagreement relates to the inferences and legal conclusions one may draw from the facts. The H-F Group’s real estate business was primarily conducted in the Homewood, Flossmoor and Olympia Fields area in the south suburbs of Cook County. The plaintiff, Ruby Ray Blake, was a licensed real estate broker who was- unsuccessful in her attempts to obtain the cooperation of the H-F Group in sharing commissions with her on sales made to clients she referred to them and in her efforts to gain membership in the group. The plaintiff contends that tire defendants’ concerted refusal to cooperate and their denial of membership to her and others constituted an unreasonable restraint of trade in violation of the Illinois Antitrust Act.

The H-F Group Multiple Listing Service was organized in March of 1969 by the four defendant real estate companies who remained through the time of trial the only members. The four defendant companies are: C. A. Baker Real- Estate, F. C. Naughton & Company, Inc., E. M. Seay, and F. W. Prindiville & Company Real Estate. Each of these companies has its sole office in the Homewood-Flossmoor area and the four are the oldest real estate firms in the area. They primarily deal in the sale of residential properties in the Homewood-Flossmoor area.

The president or senior partner in each of the four defendant firms testified at trial concerning their reasons for organizing the H-F Group Multiple Listing Service and the operation of this service. Henry J. Bodnar, the President of both the H-F Group and his own firm, F. C. Naughton & Company, testified that prior to the formation of the H-F Group, the four member firms had “cooperated” with many other real estate firms. The term “cooperation” when used in the real estate business means that a real estate broker who has a client desiring to purchase a home may refer that client to another broker who has a home listed in which the client is interested. If the client then decides to purchase the home, the referring broker and the selling broker will “cooperate” by sharing the commission earned from that sale.

Mr. Bodnar testified that the four defendant firms had a number of problems when they were cooperating with other brokers. He complained of incidents where the brokers they referred clients to were often very unfamiliar with the homes they were selling and the community in which the homes were situated. He stated that this led to his clients being given inadequate service.

Ernest M. Seay, the President of the E. M. Seay firm, another defendant, testified that at the time the defendants formed the H-F Group Multiple Listing Service, there was another group already in existence, the South Suburban Multiple Listing Service. South Suburban, as the H-F Group, was a multiple listing service which is an organization of real estate brokers which shares with its members the listings of all real estate parcels for sale which the other members have. This type of organization is apparently quite common throughout the United States. When a home is listed for sale with a certain member broker, that broker will share the listing with all the members of the listing service. If a sale is made by one of the members, then there is an arrangement provided for the sharing of the commission earned.

Mr. Seay testified that the South Suburban group covered a much wider area than the Homewood-Flossmoor area. The defendants had no interest in joining this group, Mr. Seay testified, because they did not feel they could properly serve persons selling homes in areas outside of the immediate Homewood-Flossmoor area. The defendants felt this way because they believed that to adequately serve their clients, all of their sales people should be personally familiar with both tire home to be sold and its surrounding area. Because the defendants did not deshe to join the South Suburban group, and because they felt they had to “meet the competition” of that group, the defendants formed their own multiple listing service, which was to be confined to the Homewood, Flossmoor and Olympia Fields area. Cornelius Baker and William Moore, who were partners in the other two defendant real estate firms, also testified that the H-F Group was formed to meet the competition of the South Suburban group.

In March of 1969, the four defendant real estate firms formed the H-F Group Multiple Listing Service. The charter of the H-F Group was set forth in an agreement signed by representatives of the four defendant firms. Paragraph 2 of the agreement provided that:

“2. Each of the Realtors shall have the right to offer for sale, subject to the terms of this Agreement, any residential real estate on which any other Realtor has an exclusive listing. Such right shall not be given to other persons, firms or corporations who are not part of this Agreement.”

In October of 1969 the agreement was amended to include certain membership requirements for new brokers who might apply for membership. These included that an initiation fee of $1000 be paid, a requirement that the applicant must not employ part-time salespersons, that the applicant not have more than one office, and that that office must be located in Homewood, Flossmoor or Olympia Fields. These membership requirements and the rule in paragraph 2 that members of the H-F Group may not cooperate with nonmember brokers are the basis of the plaintiff’s case.

Mr. Bodnar, the H-F Group president, testified that the “sole office” rule was established because the defendant firms had had unsatisfactory experiences with multiple office firms showing people homes in their area in instances where the salesperson knew nothing about the home or the community. Bodnar also testified that the “no part-time salespersons” rule had been established because they had had many bad experiences with part-time sales people who lacked the motivation or training to do a good job or who were out of the office just when they were needed.

The defendants testified that each had its sole office in the Homewood-FIossmoor area and employed only full-time real estate salespersons.

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Bluebook (online)
345 N.E.2d 18, 36 Ill. App. 3d 730, 1976 Ill. App. LEXIS 2079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blake-v-h-f-group-multiple-listing-service-illappct-1976.