ELIZABETH L. W. BAILEY, Admrx., etc., v.
DISTRICT OF COLUMBIA.
(See S. C. Reporter's ed. 161-170.)
Agreement to arbitrate — power of commis¬ sioners of District of Columbia — appoint¬ ment of referee.
An agreement to arbitrate, not under rule of court or within the terms of a statute en¬ acted for such purpose, is a contract.
2. The commissioners of the District of Colum¬
bia had not the power to bind the District by a common-law submission of a pending suit for breach of contract, to a referee, under the act of June 11, 1878, which provides that they
shall make no contract and incur no obliga¬ tion which is not therein provided for and ap¬ proved by Congress.
3. The mere statement of the appointment of
a referee, on the minutes of the commission¬ ers of the District of Columbia, without any signature thereto by the commissioners, is in¬ sufficient to constitute a contract by them un¬ der the act of Congress of June li, 1S78, re¬ quiring all contracts to be copied in a book kept for that purpose, and to be signed by the commissioners.
[Nos. 390, 420.]
Submitted January 10, 1808. Derided May 31, 1808.
IN ERROR to the Court of Appeals of the District of Columbia to review a judgment of that court ailirming a judgment in favor ->1 the plaintill, Elizabeth W. Bailey, as ad¬ ministratrix of Davis W. Bailey, deceased,
Note, — As to contracts ; their interpretation and validit y, — see note to Bell v. Bruen, 11 : 89.
/is to agreements to arbitrate; specific perfor¬ mance of; remedy at law for breach of; as a bar to actions, — see note to Kinney v. Baltimore & O. Employees’ Asso. (W. Va.) 15 L. R. A. 142.
As to submission to arbitration ; effect of; revocation of; judgment on award, — see note to People, Union Ins. Co., v. Nash (N. Y.) 2 L. R. A. 180.
As to setting aside arbritration and award; relief from mistake in award; validity of award, — see note to Hartford F. Ins. Co. v. Bonner Mercantile Co. (C. C. D. Mont.) 11 L. R. A.
623.
Arbritration ; submission to; when may be re¬ voked; when reviewed, or set aside, or void; when binding ; effect of; death of arbitrator; notice cf hearing; selecting umpire; costs. When submission to arbitration is revocable. Paulsen v. Mauske, 126 Ill. 72; Oregon & W. Sav. Bank v. American Mortg Co. 3a“Fed. Itep. 22; People, Union Ins. Co., v. Nash, 111 N. Y. 310, 2 L. It. A. 180; Gregory v. Boston Safe De¬ posit & T. Co. 36 Fed. Itep. 4U8; Sidliuger v. Kerkow, 82 Cal. 42; Farel v. Roberts, 1 Pa. Dist. II. 743; Minneapolis & St. L. It. Co. v Cooper, 59 Minn. 290 .
A party to an arbitration agreement provid ing for a written award mav revoke the same after the arbitrators have individually commun¬ icated to strangers their respective views but before they have signed auy award. Butler v Greene, 49 Neb. 2S0.
The right to revoke a submission to arbitra¬ tion at common law must be exercised before tile publication of the award. Otherwise it wilt be considered waived. Connecticut F. Ins Co v. O’Fallon, 49 Neb. 740.
An agreement to submit a matter to two arbitrators, by whom au umpire is to be chos en to act only on matters of difference between the arbitrators, does not authorize one arbitra¬ tor and such umpire to return an award with¬ out g showing of difference between the arbi¬ trators. Manufacrurers’ & B. F Ins Co v Mullen, 48 Neb. 620. ' '
An award of arbitrators is too uncertain to lie conclusive upon the parties where it leaves the amount due from one party to the other to bo determined by a reference to books of ac¬ count involving more than a mere computation Mather v. Day, 106 Mich. 371.
The method provided by Neb. Code Civ Proc tit. 28, for settling differences by arbitration! is not exclusive of the right to arbitrate which existed at common law. Burkland v. Johusou 50 Neb. 858.
Effect upon common-law arbitration of stat¬ utory provisions for arbitration. New York Lumber & Wood Working Co. v. Schnieder, 119
118
N. Y. 475 ; Ehrman v. Stanfield, *80 Ala. 118 ; Conger v. Dean, 3 Iowa, 463, 66 Am. Dec. 93.
Agreement of parties to submit controversy to arbitrators, who were to return their award to a specified court, is binding as to the court to which the award shall be returned, even to the extent of vesting such court with jurisdic¬ tion over the parties which it otherwise would not have had. McMillan v. Allen, 98 Ga. 405.
Agreement to submit to arbitrators all dis¬ putes relating to performance of agreement, whose decision, not only as to the damages, but also as to the fact of a violation of the agree¬ ment shall be final, is void. Miles v. Schmidt, 168 Mass. 339.
viiuucutt ui vacancy oy aeatn or other¬ wise, in a board of arbitration, revokes the sub¬ mission, where it makes no provision for tilling vacancies. Wolf v. Augustine, 181 Pa. 576.
ihe hearing of testimony by arbitrators in the absence and without notice to a party is tatal to an award against such party. Itand v. Peei, 74 Miss. 305.
Necessity of notice of hearing. The War¬ wick. L. R. 15 Prob. Div. ISO ; Vessel Owners’ lowing Co. v. Taylor, 126 Ill. 250 ; Citizens Ins Co. v. Hamilton, 4S Ill. App. 593; Dormov v. Knower, 55 Iowa, 722 ; Curtis v. Sacramento, V^Cal. 102 : McFarland v. Mathis, 10 Ark. 500 • Hills v. Home Ins. Co. 129 Mass. 345 : Conrad v. Massasoit Ins. Co. 4 Allen. 20: Wood v Holme. 14 It. I. 325 ; Dreyfous v. Hart, 36 La" Ann. 929 ; Conger v. Dean, 3 Iowa, 463. 66 Am Dec. 93; Lutz v. Linthicura, 8 Pet 178 (8 : 992 1 ’ Emery v. O wings. 7 Gill, 4S8. 4S Am. Dec. 5S0 ; Warren v. Tinsley, 2 U. S. Ann 507 53 Fed. Rep. 089, 3 C. O. A 613.
Award is null and void where arbitrators ap¬ pointed by the parties, without the consent of oue of the parties, called in a third arbitrator before they had failed to agree, in violation of the submission which stipulated that a third aibitrator might be called in if the original ar- tona69 Vta01d t0 asl'ee’ Christenson v. Carle-
Power to select umpire. Hart v. Kennedy, 4|0N- 'T- F.q. 51; Bryan v. Jeffreys, 104 N. C. .M2 : McMahan v. Spinning, 51 Ind. 1S7 ; Royse v. McCall, 5 Bush, 695 ; Sharp v. Lipsey, 2 Bail L. 113; Daniel v. Daniel. 6 Dana, 98.
Award of arbitrators appointed in action will not be set aside because the board of arbitra¬ tors did not commence work, nor finish the work and file the award, within the time provided in tlie agreement of submission, where tire delay was only a few days and could not affect the rights of the parties. Eifert v. Wolf, 19 Ky. L Rep. 507.
An award will not be set aside on the ground of error in the findings in the absence of fraud, undue influence, or improper conduct on the part of the arbitrators. Henry v. Hilliard, 120 IN. C. 4 1 9.
171 U. S.
1897.
District of Columbia v. Bailey.
lbl, 103
against the District of Columbia, in the Su¬ preme Court ol that District upon an award for a breach of contract for resurfacing with asphaltum certain streets in the citv of Washington, and in favor of the defendant in another action. Reversed, and cases remand¬ ed with directions to dismiss one action and to grant a new trial in the other.
See same case below, 9 App. D. C. 360.
Statement by Mr. Justice White*
On July 30, 1879, a contract for resurfac¬ ing with asphaltum certain streets in the city £162]of Washington was awarded to the ‘Bailey- trench Paving Company. The agreement was embodied in a writing signed on the one part by Davis W. Bailey as general agent of the company just named, and on the other part signed and sealed by the commissioners of the District of Columbia. The price speci¬ fied for the work aggregated a little less than $41,000. On February 12, 1880, when about
three fourths of the work to be done under this contract had been completed and about $36,000 earned thei'efor, including $5,784.14 allowed for extra work, the commissioners notified Bailey that no more work could be performed under the contract, because of the fact that the appropriation made by Con¬ gress for the work in question was exhausted. Subsequently; on February 24, 1883, Davis W. Bailey, claiming that he was in fact the Bailey-French Paving Company, instituted an action at law in the suprerhe court of the District of Columbia against the District of Columbia to recover $25,000 as damages, averred to have been sustained by the cessa¬ tion of the work under the contract. The District, oh April 4, 1883, filed pleas, claim¬ ing a set-off of $1,312.30 for damages alleged to have been sustained by improper perform¬ ance of the work of resurfacing; averring the termination of the contract by reason of the appropriation having been exhausted;
Arbitrators, unless restricted by the agree¬ ment to submit, are not, as to matters of law, bound in all cases to follow the strict rules of law governing the courts, but may decide in accordance with their views of the equitable rights of the parties. School Dist. No. 5 v. Sage, 13 Wash. 352.
An award by arbitrators under the Washing¬ ton statutes, if fairly and honestly made upon due consideration of all the evidence before them, is conclusive and binding upon the par¬ ties. School Dist. No. 5 v. Sage, 13 Wash. 352.
The conclusions of arbitrators on facts sub¬ mitted to Them, which are such as may be de¬ termined differently by fair minded and honest people, are final, and not subject to review. Witz v. Tregallas, 82 Md. 351.
A suit cannot be maintained upon an original cause of action which has been submitted to arbitrators, where the plaintiff retains the fruits of the award. Orvis v. Wells, F. & Co. 38 U. S. App. 471, 73 Fed. Pep. 110, 19 C. C. A. 382.
An award by arbitrators will not be set aside upon a doubtful point of law or upon a com¬ plaint of error which is not plain, even where the arbitrators are required to decide according to the strict rules of law. School Dist. No. 5 v. Sage, 13 Wash. 352.
' ^agreement of arbitration forced by a threat of prosecution for perjury is void. La- ferriere v. Cadieux, 11 Manitoba L. R. 175.
Failure to insert the names of the arbitrators in a written submission to arbitrate does not invalidate such submission. Reeves v. McGloch- lin, 65 Mo. App. 537.
An award made in pursuance of a submission under Ala. Code, § 3222, of partnership trans actions carried on in two states by partners who reside in two different states, is not vi¬ tiated as an Alabama award by the fact that the sitting of the arbitrators occurred in a store, the property of the parties across the state line.
Fdmu'ndson v. Wilson, 108 Ala. 118.
A submission to arbitration requiring the ar¬ bitrators to make a written award and deliver a copy thereof to the parties is not complied with by one of the arbitrators notifying a party on meeting him on the street that the arbitra¬ tors had come to a decision, with a statement as to what their finding was. Anderson v. Miller, 108 Ala. 171.
The decisions of arbitrators, under Ala. Code, i 3222. are to be liberally construed, and every reasonable intendment is made to support them.
Edmundson v. Wilson, 108 Ala. 118.
A motion to vacate or modify an award is properl v denied when filed during the second term after publication of the award, under the Missouri statute requiring such an application to be made at the next term after such publi¬ cation. Reeves v. McGlochlin, 65 Mo. App. 537.
An award of arbitrators will not be vacated or modified under Mo. Rev. Stat. 1889, §§ 405, 406, for alleged mistakes which do not appear
171 TJ. S.
on the face of the record. Reeves v. McGloch¬ lin, 65 Mo. App. 537.
That an agreement for arbitration does not comply with the mode prescribed by the Texas Revised Statutes does not invalidate it, in view of the provision that nothing therein shall be construed as affecting the right of parties to arbitrate their differences in such other mode as they may select. Salinas v. Stillman, 30 U. S. App. 40, 66 Fed. Rep. 677, 14 C. C. A. 50.
An agreement without action pending, to submit all matters in variance between the parties to designated arbitrators, written down by a justice in his docket, is a common-law sub¬ mission to arbitration. Climenson v. Climen- son, 163 Pa. 451.
Costs and expenses incurred in preparing for an arbitration, under an agreement that the compensation of the arbitrators and their ex¬ penses and those of the witnesses shall be borne and paid by the parties in a designated propor¬ tion, may be recovered in full from a party who revokes the agreement, under N. Y. Code Civ. Proc. § 2384. Union Ins. Co. v. Central Trust Co. 24 N. Y. Civ. Proc. Rep. 219, Affirmed in 87 Ilun, 140.
A provision in a submission of a controversy to arbitrators, that the arbitrators shall proceed on the principles of equity, it being the desire that the matters in dispute shall be equitably settled so that each shall have from the other ail that is his equitable due, — means equity in the sense of "fair dealing” and ‘'justice.” Re Curtis, 64 Conn. 501.
An agreement by a client and his attorney to submit the amount of the latter’s compensation to the determination of a person upon a sworn itemized and explanatory statement of the serv¬ ices rendered and expenses incurred and of the moneys received, the arbitrator to allow only such sum as he believes proper and necessary for preparing the defense in the suit in which such services were rendered, constitut .s in ef¬ fect a common-law arbitration, which is still recognized and enforced by the courts of New York. Box v. Costello, 6 Misc. 415.
The award of arbitrators to whom a case is submitted by mutual consent of the parties is conclusive upon them, although the agreement of submission is by parol and the parties do not assent to the award after it is made. Wentz v. Bealor, 14 Pa. Co. Ct. 337.
The power of awarding the costs of arbitra¬ tion is necessarily incident to the authority con¬ ferred on the arbitrators of determining the case, although such costs are not provided for in the terms of submission. Stewart v. Grier,
7 Houst. (Del.) 378.
The fact that one has been previously In the employ of one of the parties to an arbitration does not disqualify him from acting as clerk for the arbitrators. Wilson v. Wilson, 18 Colo.
615.
The necessity for filing an award of arbitra¬ tors with the clerk as required by the Colorado
119
162-164
Supreme Court op the United States.
Oct. Term,
and alleging that the time within which the contractor had stipulated to complete the work had expired long prior to the cancela¬ tion of the contract. The plaintiff joined is¬ sue and filed a replication on April 18, 1883.
On June 19, 1883, Bailey died. His widow was appointed administratrix, and the action against the District was revived in her name.
On September 16, 1891, the attorney for the claimant addressed a letter, on behalf of the administratrix, to the commissioners of the District of Columbia, calling attention to the pending case, stating that “the ground of said suit is for breach of contract,” recit¬ ing the facts as to the making of the contract and the mode by which it was terminated, and claiming that, at the time of such can¬ celation, Bailey had expended for machinery necessary to the performance of the contract $10,180; that he had at the time stock on [ 1 63 ]hand, $7,000 ; that *the profit on the unexecut¬ ed balance of the work would have been $8,- 000; that there was due under the contract for an extra one half inch of surfacing $5,000. These items were stated in the letter to amount to $31,180, but only aggregate $30,-
180. Without calling the attention of the
commissioners to the fact that the item of $5,000 for an extra half inch of resurfacing was not asserted in the declaration in the pending suit, the attorney for the administratrix pro¬ ceeded to refer to the defenses interposed in such suit on behalf of the District, and next stated the claim made by the contractor in his replication, that the delay in the work was the fault of the District. The conclu¬ sion of the letter, omitting references to im¬ material matters, was as follows:
“Now, having stated the principal facts which bear upon this case, that you may have sufficient knowledge to act in the prem¬ ises, I write to ask if you will appoint some good man as a referee or arbitrator to whom
this case may be referred, with power to hear the evidence and make an award which shall’ be accepted, whether for or against us, as a final settlement of this long and much liti¬ gated case.”
This communication was referred by the commissioners to the attorney for the Dis¬ trict, who indorsed thereon under date of Oc¬ tober 17, 1891:
“This is a case which has been pending in the court for a long time and it ought to be disposed of. If it could be referred to some first-class referee, who will give us a full hear¬ ing, it would be a very good way of disposing of it, and I should favor such a reference, as we can then attend to it at our convenience.”
A memorandum was also sent by one of the commissioners to the assistant attorney for the District, which read as follows:
“Thomas: Think of some good names for a referee, and talk with us about this ease.
“October 27, 1891. J. W. D.”
A memorandum in pencil, evidently having reference to the foregoing, is as follows:
*“Ans. Mr. Douglass. Comm’rs think this[164J case should be settled in court.”
On October 28, 1891, Assistant Attorney Thomas sent the following letter:
To the Hon. Commissioners, etc., etc.
Gentlemen: I return to you herewith a communication from W. Preston \ illiamson, Esq., relative to the case of Bailey v. The District of Columbia, referred to me with the request that I give you the name of someone who would make a good referee.
I would suggest either Mr. A. B. Duvall or Mr. J. H. Lichliter, both members of the bar and well qualified to decide the issues in that case. Very respectfully,
S. T. Thomas, Ass’t Att’y, D. C,
statute is obviated by the payment of the award. Wilson v. Wilson, IS Colo. 615.
Failure of an umpire chosen to render a de¬ cision upon an arbitration after the authority of the original arbitrators has ceased, to rehear the testimony taken before the arbitrators, is fatal to the award. Re Greniug, 74 Iiun, 62.
Omission to administer oaths to arbitrators and witnesses is not a ground of objection to the award made by the arbitrators where the contending parties expressly agreed that no oaths should be administered to the arbitrators, and that the testimony of witnesses unsworn should be received. Russell v. Seery, 52 Kan.
736.
Failure of an arbitrator to be sworn is not a jurisdictional defect, but at most an irregulari¬ ty which can be availed of only by motion to set aside the award, or by raising it in the an¬ swer in a suit to enforce the award. Box v. Costello, 6 Misc. 415. . , . .
A waiver by an assignor of a claim which, by agreement of the assignor, assignee, and debtor, is submitted to arbitration, of the oath of arbi¬ trators required by N. Y. Code Civ. Proc. § 2369, unless waived, is not binding upon his assignee. Re Grening, 74 Huti. 62.
An award of arbitrators is void where they have attempted to award what they have no power to award, and have failed to find what they were empowered to determine. Fortune v. Kiliebrew, 86 Tex. 172.
Error of judgment by arbitrators as to the effect or weight of evidence is not a ground for setting aside the award. Russell v. Seery, 52 Kan. 736.
An award of arbitrators will not be set aside
for fraud, accident, or mistake unless the fraud was practised upon the arbitrators or the acci¬ dent or mistake deceived and misled them. A mistake of arbitrators in weighing the facts placed before them, or their adoption of errone¬ ous rules of law, is not sufficient. Wilson v. Wilson, 18 Colo. 615.
An award of arbitrators, arrived at in pur¬ suance of the terms of the agreement voluntari¬ ly adopted by the parties, will not be reviewed on the question of damages, unless there was corruption or partiality of the arbitrators, mis¬ conduct during the hearing, or fraud in the op¬ posite party. Hartford F. Ins. Co. v. Bonner Mercantile Co. 15 U. S. App. 134, 56 Fed. Rep. 378, 5 C. C. A. 524.
An award under a common-law arbitration is conclusive upon the parties, merges the original right, and alone furnishes the basis upon which the rights of the parties are to be determined. Box v. Costello. 6 Misc 415.
A judgment entered upon an award by arbitra¬ tors is void where some of the necessary par¬ ties did not properly join in the submission, and the arbitrators failed to determine the issues and decided matters not submitted to their de¬ termination. Fortune v. Kiliebrew, 86 Tex.
172. „ „ u.
An application to set aside an award of arbi¬ trators for purely technical reasons will be de¬ nied where no apparent injustice has been done or is contemplated, and defendant voluntarily submitted all matters in dispute, and the amount of the award has been collected. Woel- fel v. Hammer, 159 Pa. 448.
120
171 U. &,
1897
District of Columbia v. Bau-k^.
104-16?
The next document referring to tlie matter is the following:
Office of the
Commissioners of the District of Columbia.
Washington, January 11, 1892.
Ordered, that J. J. Johnson is hereby ap¬ pointed referee in the matter of the suit of Bailey, Administratrix of Bailey, Deceased, v. District of Columbia.
Official copy furnished Mr. J. J. Johnson.
By order: W. Tindall, Secretary.
Under this appointment, on February 17. 1892, the attorneys for the respective parties appeared before Mr. Johnson. It was claimed by witnesses for the plaintiff at the trial of the action subsequently brought to enforce the finding of the referee, that at the com¬ mencement of the hearing the latter gentle¬ man, as well as the attorney for the adminis¬ tratrix, raised the question whether or not under the order of appointment the decision of the referee was to be final, and were as¬ sured by the attorney for the District that the decision of Air. Johnson was to be a final [ 1 65]determination of the case. *Such witnesses also testified that subsequently, when a ques¬ tion arose with respect to permitting an amended declaration to be filed, setting up a claim for an extra half inch of resurfacing, the referee and attorneys discussed as to whether the decision of the referee “was to wind up finally the whole matter,” and an affirmative conclusion was arrived at. No attempt, however, was made to obtain from the commissioners of the District any modification or amplification of the writing of January 11, 1892.
The hearing before the referee was con¬ cluded on July 18, 1892, when Air. Johnson placed on the files of the supreme court of the District of Columbia in action numbered 24,279 his report as referee. The report did not refer to the mode by which its author had become referee. It was entitled in the cause, purported to contain a synopsis of the pleadings, the plaintiff’s claim, a statement of the facts and the findings of “J. J. John¬ son, referee.” The report concluded as fol¬ lows:
“Upon the evidence and the law I have al¬ lowed the plaintiff for the unexecuted bal¬ ance of 11,385 square yards, $4,440.15, being the profit between the cost of resurfacing the streets at fifty cents per square yard and eighty-nine cents, the price received, and for the extra one-half inch I have allowed the plaintiff $6,079.05 at the contract price, ag¬ gregating the sum of $10,519.20. I do there¬ fore find that there is due to the plaintiff from the defendant the sum of $10,519.20, be¬ sides costs.”
The referee also fixed his fee at $550, which was paid by the administratrix.
On September 23, 1892, exceptions were filed on behalf of the District to this report. Upon the exceptions, the attorney for the plaintiff made the following indorsement:
“I consent that these exceptions be filed
171 U. S.
nunc pro tunc.” On March 10, 1893, a mo¬ tion for judgment was filed on behalf of the plaintiff.
Without action being had on the excep¬ tions and motions referred to, the adminis¬ tratrix of Bailey, on August 8, 1893, insti¬ tuted an action at law, numbered 34,564. in the supreme court *of the District of 0olum-