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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Halva v. Minnesota State Colleges & Universities

Docket: A19-0481

Opinion Date: January 20, 2021

Judge: G. Barry Anderson

Areas of Law: Communications Law, Education Law

In this case alleging that Minnesota State Colleges and Universities (MnSCU) failed to maintain and produce certain government data the Supreme Court reversed the decision of the court of appeals holding that Plaintiff's complaint under the Minnesota Government Data Practices Act was insufficiently pleaded and affirmed the court's holding that the Minnesota Official Records Act did not authorize a private cause of action, holding that the allegations of Plaintiff's complaint were sufficient. In his complaint, Appellant alleged that the actions of MnSCU violated both the Data Practices Act and the Official Records Act. The district court dismissed both claims, concluding that Appellant could not pursue judicial remedies under the Data Practices Act after obtaining an administrative remedy under the that and that the Official Records Act does not authorize a private cause of action. The court of appeals affirmed but decided the Data Practices Act issue on the alternate ground that the complaint was insufficiently pleaded. The Supreme Court reversed in part, holding (1) Appellant's complaint was sufficiently pleaded; and (2) the Official Records Act does not authorize a private cause of action.

Pfoser v. Harpstead

Docket: A19-0853

Opinion Date: January 20, 2021

Judge: Chutich

Areas of Law: Public Benefits, Real Estate & Property Law

The Supreme Court affirmed the decision of the court of appeals affirming the judgment of the district court reversing a transfer penalty imposed by the Commissioner of the Minnesota Department of Human Services on David Pfoser, a disabled Medicaid recipient who resided in a long-term care facility, after he transferred partial proceeds from the sale of a house into a pooled special-needs trust, holding that Pfoser made a satisfactory showing that he intended to receive valuable consideration for his transfer of assets. State and federal law impose a penalty on recipients, like Pfoser, of Medical Assistance for Long-Term Care benefits if they transfer assets for less than fair market value, but no penalty is imposed if the recipient makes a satisfactory showing that he intended to dispose of the assets either at fair market value or for other valuable consideration. See Minn. Stat. 256B.0595, subd. 4(a)(4). The Commissioner affirmed the transfer penalty imposed on Pfoser. The district court reversed, concluding that Pfoser received adequate compensation in the form of his vested equitable interest in the trust assets. The Supreme Court affirmed, holding that substantial evidence did not support the Commissioner's decision to uphold the penalty.

Miller v. Molloy

Docket: A19-0372

Opinion Date: January 20, 2021

Judge: Chutich

Areas of Law: Trusts & Estates

The Supreme Court affirmed as modified as modified the decision of the court of appeals reversing the judgment of the district court denying Maria Molloy's motion to intervene in Pamela Spera's proceeding seeking enforcement of a divorce decree that dissolved her marriage to Rodney Miller, holding that Molloy had a right to intervene as to the valuation of Miller's retirement accounts. In the enforcement proceeding, Spera sought to have the retirement accounts she and Miller each held divided according to the terms of the divorce decree. Before Miller passed away, he named his four daughters - including K.M.M., the child he had with Molloy - as beneficiaries on his retirement accounts. Molloy sought to intervene in Spera's enforcement proceeding as a matter of right to assert K.M.M.'s interest in Miller's retirement accounts. The district court denied intervention. The court of appeals reversed, concluding that the four requirements under Minn. R. Civ. P. 24.01 for intervention were met. The Supreme Court affirmed as modified, holding that Molloy's right to intervene was limited specifically to the valuation of Miller's retirement accounts.