REALTOR^® A cooperated in the sale of a commercial property with REALTOR^® B, the listing broker. REALTOR^® A is a member of the XYZ Board of REALTORS^®, and his office is located in the XYZ Board. Both the property and REALTOR^® B's office are located within the jurisdiction of the ABC Board of REALTORS^® where REALTOR^® B is a member. A dispute arose between REALTORS^® A and B over the division of the commission.

REALTOR^® A filed a request for arbitration with the Professional Standards Committee of his Board. The President of the Board, when advised of the contractual dispute, subsequent to the Grievance Committee finding the matter arbitrable and of a mandatory nature, notified the President of REALTOR^® B's Board and requested interboard arbitration in accordance with Article 17 of the Code of Ethics. The arbitration request was brought before the Grievance Committee of REALTOR^® B's Board which also determined that the dispute was arbitrable and of a mandatory nature.

One week before being notified of his Grievance Committee's decision, REALTOR^® B filed suit against REALTOR^® A. The Board of Directors of the ABC Board notified REALTOR^® B to appear and answer to a charge of violation of Article 17 when REALTOR^® B did not withdraw the suit subsequent to being informed that both Grievance Committees had found the issue arbitrable and mandatory.

REALTOR^® B described his contractual dispute to the Directors and stated that he knew REALTOR^® A had requested arbitration because he had received a copy of the request. REALTOR^® B maintained that he had filed suit because REALTOR^® A was in another Board's jurisdiction and he did not think anything would come of the request since he, REALTOR^® B, was not a member of XYZ Board.

What do you think the hearing panel concluded? Show Answer