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Fox Film Corp. v. Muller
United States Supreme Court
296 U.S. 207 (1935)
Fox Film Corporation (Fox) (plaintiff) sued Muller (defendant) in state court for breach of two contracts involving Muller’s license to show movies belonging to Fox. Muller alleged the contracts were invalid under the federal Sherman Anti-trust Act and, alternatively, that the arbitration clause of the contracts was invalid and voided the contracts. Fox was a defendant in an earlier case involving contracts substantially similar to Muller’s contracts in which the arbitration clause was held to be invalid. See United States v. Paramount Famous Lasky Corp., 34 F.2d 984, aff’d 282 U.S. 30. The lower state court dismissed the case, finding first that the arbitration clause was invalid and voided the contract, and second, that the contracts violated the Sherman Anti-trust Act. The Supreme Court of Minnesota affirmed on the grounds that the arbitration clause was invalid and tainted the entire contract, relying on United States v. Paramount. The United States Supreme Court granted certiorari.
Rule of Law
Holding and Reasoning (Sutherland, J.)
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