Michael Dahdah v. Rocket Mortgage, LLC -Eastern District of Michigan at Flint
Split Score
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Case Summary
Disposition
Reversed
The Sixth Circuit held that Michael Dahdah formed an enforceable agreement to arbitrate when he clicked buttons on the LowerMyBills.com website, which provided sufficiently conspicuous notice that clicking would constitute assent to the site’s Terms of Use (including a broad arbitration clause). Accordingly, the court reversed the district court’s denial of Rocket Mortgage’s motion to compel arbitration and remanded for further proceedings consistent with compelling arbitration.
Circuit Split Identified
Legal Issue
Whether, under Erie, the classification of an issue as a question of law versus a question of fact is governed by state substantive law (thereby making the issue one for the court) or by federal procedural law (thereby potentially allocating it differently).
Circuit Positions
Classification of law-versus-fact boundary is a substantive issue governed by state law under Erie (thus courts apply state law to decide whether contract-formation ‘conspicuousness’ is a question of law).
Classification of law-versus-fact boundary is a matter of federal procedural law (thus federal law determines whether the issue goes to judge or jury).
Conflict Summary
The Ninth Circuit has treated the determination of whether an issue is a question of law or fact as a substantive matter controlled by state law, whereas the Seventh Circuit has characterized the same boundary-drawing as a matter of federal procedure. In this opinion, the Sixth Circuit adopts the Ninth Circuit’s approach and treats the classification question as governed by state law, expressly noting the Seventh Circuit’s contrary view.