Hackman v. Dickerson Realtors, Inc.

595 F. Supp. 2d 875, 2009 U.S. Dist. LEXIS 4886, 2009 WL 180270
CourtDistrict Court, N.D. Illinois
DecidedJanuary 23, 2009
Docket06 C 50240
StatusPublished
Cited by2 cases

This text of 595 F. Supp. 2d 875 (Hackman v. Dickerson Realtors, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hackman v. Dickerson Realtors, Inc., 595 F. Supp. 2d 875, 2009 U.S. Dist. LEXIS 4886, 2009 WL 180270 (N.D. Ill. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

ELAINE E. BUCKLO, District Judge.

Plaintiffs Gregory Hackman d/b/a Gregory Hackman Realtors and Gregory Hackman Realtors, Inc. (collectively, “Hackman”), have filed a second amended complaint seeking to cure the pleading deficiencies I found in previous versions of the complaint. See Hackman v. Dickerson Realtors, Inc., 520 F.Supp.2d 954 (N.D.Ill.2007) (“Hackman I”) and Hackman v. Dickerson Realtors, Inc., 557 F.Supp.2d 938 (N.D.Ill.2008) (“Hackman II”). Several defendants have filed motions to dismiss the newest version of the complaint. I resolve these motions as discussed below.

I.

This opinion assumes general familiarity with the facts set forth in my earlier opinions. Plaintiffs are real estate concerns doing business in the Rockford, Illinois area. Defendants are other local real estate agents and agencies and two professional associations: the Rockford Area Association of Realtors (“RAAR”) and the Illinois Association of Realtors (“IAR”). Plaintiffs allege an anticompetitive scheme by defendants to drive plaintiffs out of the local real estate market in retaliation for plaintiffs’ offering their clients a lower commission rate than the “going” rate offered by the agent and agency defendants. 1

Like the previous two complaints, the second amended complaint sets forth six counts: Counts I and II allege, respectively, federal and state antitrust violations against numerous defendants. Count III seeks a temporary injunction against RAAR and IAR to stop an ethics hearing against Hackman. Count IV seeks a permanent injunction against RAAR and IAR concerning the same ethics proceedings, as well as a declaration that RAAR and IAR violated their internal procedures in handling these proceedings. Count V alleges defamation by several defendants and is not at issue in the pending motions. Count VI alleges tortious interference with business expectancy and contract.

Now before me are the following motions: defendant Hall’s motion to dismiss Counts I, II, and VI; a joint motion by defendants RAAR and IAR to dismiss Counts I-IV and VI 2 ; defendant Sheley’s *878 motion to dismiss Counts I, II, and VI; defendant Young’s motion to dismiss Counts I and II; and defendant Westin’s motion to dismiss Counts I, II, and VI.

The standards by which I must judge the sufficiency of the second amended complaint against the challenges raised by these motions is by now familiar: First, I must accept all well-pleaded facts as true. Thompson v. Illinois Dep’t of Prof'l Regulation, 300 F.3d 750, 753 (7th Cir.2002). Second, I must view the allegations in the light most favorable to plaintiffs. Gomez v. Illinois State Bd. of Educ., 811 F.2d 1030, 1039 (7th Cir.1987). Dismissal of a claim is proper only if plaintiffs have not, at minimum, made enough factual allegations to “raise a right to relief above the speculative level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 1965, 167 L.Ed.2d 929 (2007) (citations omitted). Nevertheless, “a well-pleaded complaint may proceed even if it appears ‘that a recovery is very remote and unlikely.’ ” Id., quoting Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974).

II. Hall’s motion and RAAR/IAR’s joint motion

Terrie Hall was President of RAAR at times relevant to this action, and the parties do not dispute that she acted as an agent of RAAR with respect to all conduct attributed to her in the second amended complaint. Accordingly, my discussion below of Counts I, II, and VI, which are asserted against Hall and RAAR, applies to both motions to the extent they seek dismissal of those counts.

A. Count I

Count I asserts violation of the Sherman Act, 15 U.S.C. §§ 1 & 2. As I held in Hackman I, “ ‘A successful claim under Section 1 of the Sherman Act requires proof of three elements: (1) a contract, combination, or conspiracy; (2) a resultant unreasonable restraint of trade in the relevant market; and (3) an accompanying injury.’ ” Hackman I, at 963, quoting Denny’s Marina, Inc. v. Renfro Prods., Inc., 8 F.3d 1217, 1220 (7th Cir.1993). Hall and RAAR contend that the plaintiffs fail to allege the first of these elements, since the second amended complaint does not assert enough factual material to suggest plausibly that Hall knowingly participated in any illegal agreement. I disagree.

In Twombly, the Supreme Court held that to state a claim under § 1 of the Sherman Act, a complaint must set forth “enough factual matter (taken as true) to suggest that an agreement was made.” Twombly, 127 S.Ct. at 1966. In Hackman II, I dismissed plaintiffs’ claim under § 1 of the Sherman Act because the allegations in the first amended complaint:

fail to allege facts from which it could be inferred that RAAR reached an anti-competitive agreement with the other defendants. That is, I do not find, based on the allegations, that any agent acting on behalf or RAAR is alleged to have ‘had a conscious commitment to a common scheme designed to achieve an unlawful objective’ as required under Monsanto v. Spray-Rite Service Corp., 465 U.S. 752, 764, 104 S.Ct. 1464, 79 L.Ed.2d 775 (1984).

Hackman II, at 946. The second amended complaint, however, has overcome this defect. In particular, plaintiffs’ allegations in ¶¶43 and 45 of their newest complaint assert that Hall had knowledge of the boycott pursued by the agency defendants, and that she engaged conduct that reasonably can be interpreted as furthering the alleged anticompetitive agreement. In ¶ 43, plaintiffs allege that Hall was present for, and participated in, a late-2004 conversation at a broker’s meeting hosted by RAAR, in which the agency defendants allegedly agreed not to do business with *879 Hackman because of his lower commission rate. 3 In ¶ 45, plaintiffs refer to a November 18, 2005 conversation between Hall and a Vice President of IAR, in which Hall and the IAR Vice President allegedly conspired to influence negatively the outcome of actions pending against plaintiffs. 4

These allegations belie Hall’s argument that the second amended complaint does not allege sufficient facts from which to infer that Hall was aware of, or agreed to, an illegal agreement.

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Related

Hackman v. DICKERSON REALTORS, INC.
746 F. Supp. 2d 962 (N.D. Illinois, 2010)
In Re Potash Antitrust Litigation
667 F. Supp. 2d 907 (N.D. Illinois, 2009)

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595 F. Supp. 2d 875, 2009 U.S. Dist. LEXIS 4886, 2009 WL 180270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hackman-v-dickerson-realtors-inc-ilnd-2009.