Smith v. Boston & Maine Railroad
Smith v. Boston & Maine Railroad
Opinion of the Court
The question before us is as to the conclusiveness of an award made by three arbitrators selected by the parties to estimate the damages occasioned by laying out and maintaining a railroad over the land of the petitioner, the submission being by bonds given by the respective parties to abide the award that might be made by said arbitrators, it being recited in the bonds of submission that “ the award of such arbitrators, or of the major part of them, given in writing under their hands, to be final and binding upon the parties.”
The submission is in the most general form, and of course leaving the arbitrators to decide upon the question submitted to them upon such principles of law or equity as they might adopt as the best adapted to the justice of the case and the rights of the parties; and being an arbitration by bonds, of course the parties did not contemplate its being returnable before any legal tribunal for supervision or acceptance, as would be the case under a rule of reference from the courts.
On the part of the petitioner, it is contended that this award is invalid, as being based upon erroneous legal principles, or, in other words, that the arbitrators erred in matter of law in determining the amount of damages claimed by the petitioner. On the other side, it is said that under the submission and award the rights of the parties are finally settled as to all questions of law or fact involved in the controversy.
No objection is taken to the award as not within the terms of the submission, or that the submission required them to determine all questions that might arise under the claim for damages as to the interest and right of the petitioner in the real estate affected by the laying out and maintaining of the railroad of the respondents.
In the first of the above cases, Jones v. Boston Mill Corporation, it was announced as a rule of law, that where it manifestly appears by the submission that the parties intended to leave the whole matter, law and fact, to the decision of the arbitrators, the award is conclusive, although they have mistaken the law, unless the award itself refers the point to the consideration of the court.
In the cases above cited will be found fully stated the principle that arbitrators have authority to decide conclusively all questions of law necessary to the decision of the matter submitted to them, unless they are restricted by the terms of the submission, and that their mistakes, in adopting erroneous rules, are not a legal cause for avoiding then award, or, to state the principle in the precise language of the court in Bigelow v. Newell, 10 Pick. 355, “ it is a well settled rule that if parties who select their own judges do authorize them to consider and decide all questions of law arising on the hearing of the subject matter, or in more general terms submit their respective rights depending upon considerations of law and fact, and the referees decide accordingly, such award is conclusive as well of the law as the fact.”
The case before us falls fully and directly within the class of cases last above described. It was a submission in general terms of the rights of the parties, depending upon the considera
Under the application of this well settled rule, had the case been strictly confined to the matter stated in the formal award declaring the determination and award of the arbitrators, concerning the matter submitted to them, we suppose there would be no question as to the finality of the same, and that this court would be precluded from the inquiry now sought to be made, namely, whether the arbitrators had decided correctly upon matters of law arising in the investigation of the subject submitted to them. The only possible ground for raising .any question as to the conclusiveness of this award is that founded upon the supplemental paper accompanying the award, signed by the arbitrators, and in these words: “ A statement of the facts and principles upon which the foregoing award is made is, at the request of the said Smith, hereto annexed, signed by the said arbitrators, and to be taken as a part of said award.” The further inquiry is whether this instrument, signed by the arbitrators, brings the case within the class of cases in which the court have revised the doings of the arbitrators, and held the award invalid if found erroneous in its decisions upon matters of law arising in the case.
One of the familiar cases where such supervision is exercised is where the arbitrator by his award refers the question of law to the decision of the court, making his award in the alternative as the court may pronounce the law. This is very intelligible, and adapted to all cases where the arbitrator does not purpose to have his award final, and where the award is returnable to the courts of law. That is not the present case, however.
Another case stated in the authorities upon this subject, and that upon which this award is to be set aside, if at all, is this, “ where it is manifest upon the award that the arbitrator intended to decide according to law, but has mistaken the law.” This ground has been supposed to open awards where the
In the case before us, it is denied on the part of the respondents that this supplement to the award can properly be taken as a part of the award for this purpose. The award, it is said, was complete and perfect without it. Had a statement precisely like this, so far as regards “ the facts and principles upon which the award was made,” been delivered to Mr. Smith at his request, to indicate to him the course taken by the arbitrators in coming to their result, such paper would furnish no sufficient ground for revising the award, and setting the same aside for error in law manifest on the award. Ward v. American Bank, 7 Met. 486. It is not then that the court has the means of knowing that the arbitrators here erred, as would be the fact m the case last supposed; but it is an essential element in the matter, that the arbitrators must have intended to furnish the means and the opportunity for correcting any errors in law they may have made. It is urged, however, that this supplement, thus executed at the request of Mr. Smith, was annexed to the award, and “to be taken as a part of the award,” and this gives greater significance to the document, and requires a consideration of the case under that aspect.
Our cases are not without some precedents for this case, taking the view of the supplemental report most favorable for the petitioner as to its being properly before the court with the award. In Bigelow v. Newell, 10 Pick. 348, where there was a statement by referees of the grounds of their decision, returned to the court to which the award was returnable, the court held
It is to be remembered that this presumption, thus spoken of as arising from the arbitrators making a statement to the court, was a presumption authorized to be made in a case not like the one before the court, but the case of an award founded on a submission by a rule of court and returnable to a court to enter judgment on the award. Now there are two considerations against the application of such a rule of presumption in the case at bar. First, the arbitrators say they make this statement “ at the request of Mr. Smith.” If this was not thus done for
Let us examine the present case by the test proposed by the counsel for the petitioner, as stated in three propositions, which in his view, if established by the evidence, would require the court to set aside this award, namely : 1st. If the arbitrators intended to decide according to law; 2d. If they have stated the law and the facts in their award, in order that it might appear whether they had executed that intent; 3d. If it appears that they have not executed that intention.
Now, as to the first, it might'be asked, where is the evidence that they intended to decide according to the principles of law rather than equity and substantial justice between the parties ? or where is the evidence that they intended to base their award upon any other legal opinions than their own ?
But however that may be, the second proposition is the one more open to doubt. That proposition affirms that the arbitrators stated the law and facts in their award, that it might appear whether they had executed their intent to decide according to law. Do the facts in the case sustain that position ? Does not the fact that the award was not made returnable to any court for revision or acceptance strongly negative any such inference as is proposed to be made ? To whom was the report of the facts and law to go to for an appellate judgment ?
It may also be further remarked, that the questions of law in which the arbitrators are now alleged to have erred, if stated most favorably for the petitioners, were questions of such a character that it cannot be said to be a case of gross and plain erroneous mistake of law. Upon questions of law of a doubtful character, and where legal gentlemen might reasonably differ, the court would be slow to set aside an award for mistakes in law, in a case of general submission by bonds to abide the award, and that the same should be final. Kyd on Awards, 351. Fairchild v. Adams, above cited.
Exceptions overruled.
Bigelow, C. J. did not sit in this case. Dewey, J. sat in this case and those following until otherwise noted. Merrick, J. did not sit for the rest of the term.
Reference
- Full Case Name
- Ebenezer Smith v. Boston and Maine Railroad
- Status
- Published