Facts
Plaintiff Fox Film Corporation sued defendant Muller in the state trial court of Minnesota, alleging that Muller had breached two contracts to exhibit the company's motion pictures. Muller's defense was that the contract was invalid under the Sherman Antitrust Act. The trial court found for Muller, first determining that the contract was invalid under the Sherman Act. The Minnesota Supreme Court affirmed, and the plaintiffs petitioned the U.S. Supreme Court for certiorari. When it was discovered that the judgment was not final, the writ of certiorari was dismissed as improvidently granted. The case was then remanded back to the state supreme court, which framed the question on appeal as whether the arbitration clause was severable from the rest of the contract.
The state supreme court followed the judgment of the U.S. Supreme Court in the case of United States v. Paramount Famous Lasky Corporation, 282 U.S. 30 (1930), which held that a similar contract was illegal in its entirety. The court then determined that the arbitration clause was not severable from the rest of the contract, rendering the entire agreement void.
Read more about this topic: Fox Film Corp. V. Muller
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