REALTOR^® A and REALTOR^® B had been engaged in a cooperative transaction that resulted in a dispute regarding entitlement to compensation. Rather than requesting arbitration before the Board of REALTORS^®, REALTOR^® A filed suit against REALTOR^® B for payment of the compensation he felt REALTOR^® B owed him. Upon receiving notification of the lawsuit, REALTOR^® B filed a request for arbitration with the Board, which was reviewed by the Grievance Committee and found to be a mandatory arbitration situation. REALTOR^® A was advised of the Grievance Committee's decision, but refused to withdraw from the lawsuit. Thereupon, REALTOR^® B filed a complaint with the Board charging a violation of Article 17 as supported by Standard of Practice 17-1.

REALTOR^® A was directed to be present at a hearing on the complaint before the Board of Directors. Evidence that REALTOR^® B had sought REALTOR^® A's agreement to submit the dispute to arbitration was presented at the hearing. REALTOR^® A defended his action in filing the suit and refusing to submit to arbitration by asserting that under laws of the state, the Board of REALTORS^® had no authority to bar his access to the courts or to require him to arbitrate his dispute with REALTOR^® B.

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