Decision
The issue on appeal was whether a question of federal law was involved in the Minnesota Supreme Court's decision. Justice Sutherland, writing for a unanimous court, held that whether a federal question existed was irrelevant, because where there is an independent question of state law which is adequate to support the state court's judgment, the U.S. Supreme Court has no jurisdiction. The severability of a contractual clause was an issue of state law, and the invalidity of the arbitration clause had already been determined by the U.S. Supreme Court in the Paramount case. The state court's determination of the non-severability of the unlawful clause was thus adequate to render the contract invalid, and was independent of any question of federal law.
Read more about this topic: Fox Film Corp. V. Muller
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