Eytalis v. Texas Association of Realtors — Fifth Circuit upheld dismissal of antitrust claims

Case
Luz de Amor Eytalis v. Texas Association of Realtors (TAR); Wichita Falls Association of Realtors (WFAR); Paragon MLS Connect (MLS); National Association of Realtors (NAR)
Court
U.S. Court of Appeals for the Fifth Circuit
Judge
Davis; Jones; Ho
Date Decided
September 9, 2026
Docket No.
25-10970
Topics
Antitrust; Pleading Standards; Supplemental Jurisdiction; Magistrate Judges
Source
Read the full opinion

Background

Luz de Amor Eytalis sued the Texas Association of Realtors, the Wichita Falls Association of Realtors, Paragon MLS Connect, and the National Association of Realtors. Her Third Amended Complaint asserted federal antitrust claims under the Sherman Act and Clayton Act, along with related state-law claims.

The Northern District of Texas dismissed the complaint under Federal Rule of Civil Procedure 12(b)(6), declined to exercise supplemental jurisdiction over the state-law claims, and overruled Eytalis’s objections to the magistrate judge’s findings and conclusions. Eytalis appealed each of those rulings.

The Court’s Holding

The Fifth Circuit affirmed. It held that Eytalis forfeited any challenge to the dismissal of her Clayton Act claim by failing to brief the issue on appeal. Her conclusory allegations also failed to plead an antitrust injury, which was necessary to establish standing for her Sherman Act claim.

Because the federal claims were properly dismissed, the district court acted within its broad discretion under 28 U.S.C. § 1367(c)(3) by declining supplemental jurisdiction over the remaining state-law claims. The district court also adequately reviewed Eytalis’s objections: it stated that it had considered them and conducted de novo review of the contested portions, and it was not required to restate the magistrate judge’s findings and conclusions.

Key Takeaways

  • An appellate argument is forfeited when the appellant fails to brief it.
  • Conclusory allegations of anticompetitive conduct do not adequately plead the antitrust injury required for Sherman Act standing.
  • After dismissing all federal claims, a district court has broad discretion to decline supplemental jurisdiction over related state-law claims.

Why It Matters

The decision underscores that antitrust plaintiffs must allege concrete facts showing injury of the type the antitrust laws are intended to prevent. It also confirms that a district court may satisfy its obligation to review objections to a magistrate judge’s recommendation by stating that it considered the objections and conducted the required de novo review, without separately repeating the magistrate judge’s analysis.

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