Joshua Harris and Donita Olds v. W6LS, Inc., doing business as WithU and WithU Loans, and Caliber Financial Services, Inc

Background Plaintiffs Joshua Harris and Donita Olds appealed a district court decision regarding arbitration and delegation provisions in loan agreements. The district court had based its decision solely on the prospective waiver doctrine, and the parties initially framed their appeal arguments around that singular issue. The court’s reasoning The court determined that contract formation is a clear prerequisite for delegation and arbitration, providing a narrower path to resolving the case. The court noted that even the most sweeping delegation cannot send the contract-formation issue to the arbitrator. The court affirmed the district court’s judgment on any ground supported by the record, having requested and received supplemental briefing on the formation issue from both parties. Even the most sweeping delegation cannot send the contract-formation issue to the arbitrator K.F.C., 29 F.4th at 837 What it means going forward The ruling clarifies that courts must independently assess contract formation before enforcing arbitration clauses, even when the parties have not initially raised the issue on appeal.