McCune v. Lytle
McCune v. Lytle
Opinion of the Court
Opinion by
Lytle and McCune, the appellant and appellee, executed an agreement, under seal, to submit to arbitrators all matters in controversy between them “involved in, or in any way concerning,” certain proceedings then pending in the court of common pleas of Fayette county, as well as “ all questions touching the purchase by H. M. Lytle of the interest of A. C. McCune in, and also in the dissolution of, the Markleton Lumber Company.” The proceedings were: (1) The Markleton Lumber Company v. A. C. McCune, No. 378, March term, 1897: (2) The Markleton Lumber Company v. The Oakdale Quarry Company, No. 355, March term, 1897; (3) A. C. McCune v. H. M. Lytle, No. 364, March term, 1897; (4) John Somers v. The Oakdale Quarry Company, No. 377, March term, 1897; (5) Lytle v. Paddock and others, No, 246, in equity. While it is true that others beside Lytle and McCune were interested in these proceedings, yet each had been instituted by one or the other, or at his instance, and one or the other of them possessed and exercised the authority of a plaintiff in each of the suits. One or the other had absolute control of each proceeding, and Lytle admitted McCune’s authority to act by entering, with him, into the agreement for submission, and it does not now lie in his mouth to rue his bargain, and ask to be relieved from the consequences of the award because of alleged lack of authority by McCune to agree to the submission: Summerville v. Painter,
As a result of their consideration of the matters involved in this last proceeding, the arbitrators found the largest portion of their award was due in it to McCune; but it is contended
The agreement to submit to arbitrators does not refer to any act of assembly, nor does it bind the parties to it, or the arbitrators, to proceed in accordance with the provisions of any statute. This agreement the parties had a right to make, and it gave the arbitrators power to act. After its execution, there was no longer to be a pending suit in equity. The contemplation of the parties was clearly a discontinuance of this and all the other proceedings, and all matters in controversy between them, “involved in, or in any way concerning,” this proceeding in equity, were to be settled and adjusted by the arbitrators. Such a submission the parties to it have an unquestioned right to make, and it should be faithfully adherred to, unless fraud or corruption or gross misbehavior by the arbitrators should vitiate the award made in pursuance of it; for “interest reipublicse ut sit finis litium” is no less true of proceedings in equity than at law. But the appellant complains and says, as stated, that the arbitrators should not have found any award in favor of McCune, in considering the matters between them in the equity proceeding, because he was entitled to no affirmative relief, not having filed a cross-bill. The bill filed prays “ for an accounting,” and the complainant evidently wished it to be from Mc-Cune. He expected a decree in his favor against the latter, and went into a court of equity for it. Before he can get it there, he must be willing to do equity. When asking that
In pursuance of their appointment, under the agreement of submission, the arbitrators met the parties in interest from time to time during a period of more than three months, and, on July 29, 1897, “ when the taking of the testimony was almost concluded,” according to the finding of the court below,
“ While the general power to revoke a submission is well settled, yet after its execution it is beyond the dominion of either party, when the submission has assumed the form of a contract upon a sufficient consideration. Hence, a submission to a final reference, in consideration of a discontinuance of pro-, ceedings in chancery, for an account, was held to be irrevocable : ” McGheehen v. Duffield, 5 Pa. 500; Shisler v. Keavy, 75 Pa. 79. “ What is termed a naked power to refer a subject of controversy to arbitration is undoubtedly revocable, but, where the agreement partakes of the nature of a contract, whereby important rights are gained and lost reciprocally, and the submission is the moving consideration to these acts, a different rule prevails. Such agreements are compromises and should be faithfully adhered to, unless there has been fraud or corruption or gross misbehavior by the referees: ” Paist v. Caldwell, 75 Pa. 161. In White’s Appeals, 108 Pa. 473, there was an agreement of reference in a pending equity suit after an examiner had been appointed. The referees were to be judges both of the law and the facts. Their decision was to be final and conclusive, and both parties expressly renounced the right to except thereto, or to take a writ of error or appeal. After this agreement had been executed by the parties, the court was
Instead of entering judgment on the award, suit was brought upon it. This was McCune’s right. He might have had the agreement to submit made a rule of court, and the award a judgment of the court; but that was not his only remedy. He could resort to his remedy at common law and sue on the award: Morse on Arbitration and Award, 575. We have not been persuaded that the award was not within the submission, and no sufficient reason having been given why the appellant should not abide by it, all the assignments of error are overruled and the judgment entered by the court below is affirmed.
Reference
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- Arbitration—Award—Discontinuance of suits. ■ Where one or the other of two persons controls various pending suits, they may agree to discontinue them, and submit all matters in controversy between themselves to arbitrators, and if they do so, neither party, after the award, will be heard to assert that the other party had no authority to agree to the submission, Equity—Equity practice—Cross-bill. The established rule in chancery practice is, that the defendant cannot have affirmative relief against the plaintiff even in the subject-matter of the suit, except by a cross-bill; but, among the exceptions to this rule, where a defendant may have a decree in his favor without a cross-bill, is a bill for accounting, if a balance should be found due the defendant. Arbitration—Equity—Accounting. Where parties to an equity suit for an accounting agree to discontinue the suit and submit the controversy to arbitrators, the arbitrators may award an accounting against the complainant, notwithstanding the fact that no cross-bill was filed. Arbitration—Revocation—Contract. Where an agreement to arbitrate is a mere naked submission, either party may revoke it before the award, but if it has become a contract between the parties, it can then be revoked only by mutual consent. Where parties to an equity suit agree to discontinue the suit, and submit the controversy to arbitrators, and it is agreed that each party shall pay one half of the costs of the suit, one half of the stenographer’s charges, and one half of the arbitrators’ fees, and the case proceeds before the arbitrators for more than three months, and the testimony is almost concluded, one of the partios cannot revoke the submission. In such a case the mutual promises of the parties are the mutual considerations which make their submission a contract, and it is immaterial that none of the costs or charges had been paid at the time of the notice of revocation. Arbitration—Suit onfgward—Rule of court. Where parties agree to arbitrate, but do not make the agreement to submit a rule of court, the party in whose favor the award is made may sue on the award.