The Greater San Diego Association of Realtors (GSDAR) has filed a case against Sandicor, Inc. which is its very own MLS. The group complained about alleged unfair business practices and demanded to be paid at least $1.5 million in damages.
GSDAR has 19,500 members including the North San Diego County Association of Realtors and the Pacific Southwest Association of Realtors. The association owns Sandicor Inc. According to Inman, GSDAR filed a complaint saying the MLS allegedly used unjustly by other shareholders to compete against the interests of the group. They are accusing Sandicor that they have been deprived access to their own MLS data and that it has allowed a merger with California Regional MLS without consent from GSDAR's management. CRM is the largest MLS in the U.S. and has 80,000 members.
The lawyers for GSDAR wrote that "despite the fact that Plaintiff owns the majority of Sandicor's share, Sandicor's board was controlled by PSAR and NSDCAR. They have used this position of power to wield Sandicor as an anticompetitive weapon, milked its resources for their own enrichment, and frustrated its purpose, all while actively preventing Plaintiff from participating in corporate decisions."
Sandicor, the North San Diego County Association and the Pacific Southwest Association are also being accused of violating fiduciary duty, waste of corporate assets, unfair, illegal, and/or fraudulent business practices, and breach of written contract, among other claims. They are also accused of violating state and federal antitrust laws.
Meanwhile in a report by Bubbleinfo, the plaintiff also disagrees about merging between Sandicor and other CRMLS companies. It says in their complaint that the move will severely affect their operations which would also cut their revenue. This has led experts to think that the merger might also be good in terms of cutting down the costs for agents. Many also think that Sandicor and GSDAR disbanding should be beneficial for both parties.
