Is it a violation of antitrust laws for an HOA to create an approved contractor list?

A friend of mine, a contractor, received a letter from a member of an HOA architecture committee basically threatening him that the HOA board is working on an

Asked on May 27, 2016 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, it is not against federal anti-trust law for an entity or organization to create a list of contractors which it will use for work on its own property or on property subject to its rules/authority. Approved contractor lists are actually very common and unobjectionable. The  anti-trust laws do not guaranty a right to bid for work or get work, or restrict people in who they decide can do work for them--they (to admittedly oversimplify) prohibit businesses from getting together and setting their policies, prices, availabilty to do work, etc. in lockstep, so as to deny the consumer choices or options. So the anti-trust laws don't protect the contractors, but they can protect consummers from contractors who gang together to eliminate or stifle competition.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.