Cothran v. Knox
Cothran v. Knox
Opinion of the Court
The opinion of the court was delivered by
Upon all the questions raised by this appeal, except that raised by the fourth ground, we agree with the Circuit judge.
As to the alleged arbitration, we think it lacks one essential featui’e, which deprives it of the character claimed for it. It seems to us to be essential to the very idea of an arbitration that there should have been an antecedent dispute or controversy between the parties. As is said by Morse, in his work on Arbitrations and Awards, at page 40, quoting from Russell’s work on the same subject, “a decision which precludes differences from arising instead of settling them after they have arisen, is, for many purposes, not an award.” Or, as is said in Smith v. B. C. & M. R. R. Co., 36 N. H. 458, if the parties have a difference or dispute, however trivial, or upon a matter however simple,
But even assuming that the foregoing objection is not well founded, there is another, fatal to the alleged award. While it is very true that a submission to arbitration may be by parol ás well as by deed or rule of court, yet it is essential that it should appear clearly from the evidence what matters are to be submitted, and to whom. Here the testimony is defective in both respects. The testimony of Millford is that he was asked by Knox “to make a settlement between Mr. Cunningham and himself. * * * Mr. Cunningham afterwards came to me and asked me to make the settlement;” but what matters were to be embraced in such - settlement this witness did not state. The natural inference from the language used would be-
There is also the same uncertainty as to the persons to whom the matters were submitted for arbitration. The only evidence tending to show that Wosmansky was one of the persons selected is the vague impression of Millford that both parties ■agreed that Wosmansky should assist him in making the settlement, for certainly the mere fact that Wosmansky signed the paper purporting to be the award cannot be regarded as evidence
But, in addition to all this, the alleged award is clearly amenable to the objection that it is partial. As is said by Nott, J., in Shinnie v. Coil, 1 McC. Ch. 485: “When it is said that partiality on the part of the arbitrators is good ground for setting aside an award, it is not to be understood that it must necessarily be a corrupt partiality. Any ex parte proceeding, the effect of which is to give an advantage to one party over the other, is such' a partiality as will avoid an award.” In this case, while Cunningham was not only not called upon for any statement, so far as the testimony shows, but was not even notified of any meeting of the arbitrators, fhe other party, Knox, was either present or in some way communicated with the arbitrators, as it distinctly appears that upon his ex parte statement, certainly incompetent as to one of the notes, whether under oath or not does not appear, the arbitrators undertook to change very materially two written instruments — notes of hand — in both instances in favor of Knox. It is difficult to understand how such conduct could be regarded by a fair-minded person as impartial. For when arbitrators not only permitted a bare statement of an interested party to contradict the terms of a written instrument, but actually undertook to alter the terms of another note, upon the bare statement of the party interested, that a third person, who was not examined as a witness, •could testify that there was an error in drawing the note in the form in which it was written, without giving the other party an opportunity to be heard as to such an extraordinary proceeding, it looks very much as if the arbitration was the result of the mere dictation of one of the parties, without any regard to the interests of the other.
As to the second ground of appeal, it is very clear that there is no evidence whatever which would have justified the referee-
As to the claim for commissions, we are unable to discover any ground upon which it can be sustained. As is abundantly shown in the authorities cited, commissions can only be claimed by virtue of some statutory provision or some contract between the parties. Where, as in this case, there is no statute allowing commissions and no evidence of any agreement between the parties to that effect, they cannot be allowed. But it is sufficient for us to say that in the case of Cooper v. Reid, 2 Mill’s Ch. 549, the point has been distinctly decided adversely to the claim of the appellant.
We think, however, that the Circuit judge erred in refusing to give the appellant credit for the note of Cunningham to Eakin, & Knox. He seems to base his judgment upon the assumption that this note was embraced in the settlement made by Du Pre in 1870. But we are unable to discover any evidence that such was the case,.and, on the contrary, think that the evidence tends to show the reverse. There is no pretence that there is any direct evidence showing that the note in question went into that settlement, but the argument is that it must be presumed to have entered into that settlement, because the giving of the note for $5091.85 raises a presumption that all antecedent indebtedness had been settled. It is very true that the giving of a note furnishes a presumption of the liquidation of all antecedent accounts, yet this is a mere presumption, liable to be rebutted, as is said in Chewning v. Proctor, 2 McC. Ch. 15, “by’very slight circumstances,” or, as is perhaps more correctly said in Morse v. Ellerbe, 4 Rich. 606, “ until explained or rebutted, the legal presumption ■ from giving a note is that all precedent indebtedness of the maker is covered by it.” Where, however, the note is given in a different right, it may well be questioned whether there is any room for such a presumption. A note given by Knox to Cunningham would not necessarily raise the presump
The judgment of the Circuit Court, as modified herein, is affirmed, and the case is remanded to that court for such further proceedings as may be necessary.
Reference
- Full Case Name
- COTHRAN v. KNOX
- Status
- Published
- Syllabus
- 1. An award is not binding upon a party not accepting it, where there is no evidence of a previous dispute between the parties concerning the matters submitted, and it does not clearly appear what matters were submitted, or to whom. 2. An award will be set aside where the evidence shows that the arbitrators acted with partiality towards one of the parties.* 3. In the absence of special contract, a partner has no right to commissions upon his collections and disbursements in the settlement of the partnership business. Cooper v. Reid, 2 Hid Ch. 549, followed. 4. A finding of fact by a referee, reversed by the Circuit judge, sustained upon a review of the evidence.