Tenth Circuit Holds That Contract Formation Issues Are for the Court, Not the Arbitrator, Notwithstanding an Express Delegation Clause

SAMUEL ESTREICHER

NYU law professor Samuel Estreicher discusses a recent decision by the Tenth Circuit in Fedor v. United Healthcare, in which the court clarified that a court must first find agreement to arbitrate before the severability doctrine comes into play. Professor Estreicher explains the severability doctrine, describes the facts giving rise to the case, and the Tenth Circuit’s reasoning behind its conclusion.

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State v. Waigand

Docket: 19-0089

Opinion Date: January 22, 2021

Judge: Thomas D. Waterman

Areas of Law: Criminal Law

The Supreme Court reversed the restitution order of the district court, holding that the State failed to prove the full amount of restitution was caused by the crime of conviction. Defendant pled guilty to ongoing criminal conduct and admitted that the victim bank's losses totaled $288,000. The bank obtained a civil deficiency judgment of $988,636. The district court ordered Defendant to pay restitution in the full amount of the bank's loss rather than the amount Defendant admitted converting. The Supreme Court vacated the restitution amount in excess of $288,000 and remanded the case for entry of an amended restitution award in that amount, holding that the district court's order was not supported by substantial evidence.

State v. Wieneke

Docket: 20-0126

Opinion Date: January 22, 2021

Judge: Per Curiam

Areas of Law: Criminal Law

The Supreme Court vacated Defendant's sentence for domestic abuse assault while displaying a dangerous weapon, holding that the district court exceeded its statutory sentencing authority in this case. The district court sentenced Defendant to an indeterminate term of incarceration not to exceed two years, suspended all but six days of the sentence, and placed Defendant on probation for two years. On appeal, the court of appeals noted that the imposed sentence appeared to be an illegal split sentence but declined to resolve the issue. The Supreme Court exercised its discretion to correct the illegality in this case, holding that the district court imposed a statutorily unauthorized sentence by suspending a portion of Defendant's indeterminate sentence.

No Boundry, LLC v. Hoosman

Docket: 19-0431

Opinion Date: January 22, 2021

Judge: McDonald

Areas of Law: Real Estate & Property Law

The Supreme Court reversed the order of the district court denying Defendant's motion to set aside a default judgment awarding Plaintiff immediate and exclusive possession of Defendant's home, holding that the district court erred in denying Defendant's motion to set aside the default judgment. Plaintiff obtained title to Defendant's home by way of a tax sale deed and, after filing a petition for recovery of real property, obtained a default judgment awarding it possession of Defendant's home. Defendant filed a motion to set aside the default judgment, asserting that he was legally disabled and exempt from paying property taxes and that he had been trying to resolve the property tax issue for some time. The district court denied the motion. The Supreme Court reversed, holding that Defendant established good cause to set aside the default judgment.