District court rules for PLF’s client, allowing challenge to Nevada’s real estate rules to proceed
Late last week, the U.S. District Court for the District of Nevada denied Nevada’s motion to dismiss Pacific Legal Foundation’s core claim in Eisenberg v. Sanchez.
Nevada’s law—which requires real estate brokers to maintain an in-state office, transact authorized business from that office, and maintain adequate records—violates the dormant Commerce Clause and hurts real-estate brokers like Derek Eisenberg.
As technology has improved, Derek Eisenberg has adopted a new business model as a real-estate entrepreneur, which allows him to offer services virtually. While Eisenberg is based in New Jersey, he has real-estate licenses in 26 states, including Nevada.
Since 1995, Eisenberg has been offering flexible and affordable real-estate services across the United States through his business, Continental Real Estate Group, Inc. Continental’s employees are licensed in forty-two states, enabling Eisenberg’s company to service a majority of the United States. Yet, Nevada’s regulatory scheme prohibits Eisenberg from practicing in Nevada unless he performs all authorized services from an address within state lines.
Nevada’s requirements are unconstitutional and limit business opportunity—and it’s almost impossible for Eisenberg to offer his services virtually, one of the hallmarks of his company. Nevada’s rules protect in-state real estate brokers from out-of-state competition.
Represented by PLF, Derek sued the Department of Business and Industry and the Nevada Real Estate Commission, including several of its officers. Although the government sought to dismiss the case, the district court ruled on Friday that Derek had plausibly shown the government’s actions violated his right.
Now the case will proceed on PLF’s central claim – that Nevada’s law violates the dormant Commerce Clause by imposing excessive burdens on entrepreneurs and business owners without satisfying a legitimate purpose for the regulations.
The Constitution gives entrepreneurs and business owners the right to work across state lines. Requiring businesses to have a brick-and-mortar office hurts business owners, especially those who pursue non-traditional virtual business models, and it limits the opportunities available to consumers.
Pacific Legal Foundation will continue to represent Eisenberg and clients like him, protecting the rights of all Americans to earn a living and enjoy the economic opportunities provided under the U.S. Constitution.
