I agree the headline was sensationalist.
All the Judge did was examine the private contract and determine that the parties involved, agreed to Sharia strictures in their disputes.
He did not sentence anyone to have their hand cut off or to genital mutilation. He did not apply Sharia to situations where non-Muslims are involved and already agreed to its strictures.
It's essentially the same to reading the remedies for breach of contract in any private agreement, and holding the violator accountable to those terms.