Columbus, Hocking Valley & Toledo Ry. Co. v. Burke

54 Ohio St. (N.S.) 98
Ohio Supreme Court·Decided January 21, 1896·Published

Opinions

Minshall, C. J.

The case gives rise to the following questions, and, if any of them, cannot be [119] answered in the negative, the judgment must be affirmed:

1. Is the award of the arbitrators the decision contemplated by the undertakings ?

2. Did the dismissal of the action by the consent of the parties estop the defendants from insisting on the terms of their undertakings?

3. Does the provision in the agreement of submission, that its execution should not impair the liability of the defendants on either of the undertakings, preclude them from insisting that it has not been judicially decided that the injunction ought not to have been granted ?

4. Was the dissolution of the injunction after the award and the dismissal of the action, such a decision ?

We will consider these questions in their order; and shall, hereafter, speak of these undertakings as bonds, and for convenience, use the singular, as what is true of one is true as to both.

1. No action can be maintained on the bond except in accordance with its terms. The liability of the principal and sureties is the same — it is on the bond; and no action on it will lie against the principal where it would not lie against the sureties. This may be regarded as settled law. In Bien v. Heath, 12 How. U. S., 168, it is said by Taney, C. J., that, “In a proceeding upon a bond, the liability of the principal cannot be extended beyond that of the sureties,” and the bond there under consideration was an injunction bond. This case was followed and approved by this court in Krug v. Bishop, 44 Ohio St., 221. See, also, in this connection, the cases of Palmer v. Foley, 71 N. Y., 106, and Johnson v. Elwood, 82 N. Y., 362, 365. [120] As observed by counsel, this is conceded by the form of the present action. It is on the bond and the contention of the plaintiffs is, that the terms of the bond have been complied with. No action can be maintained on the bond without a decision that the injunction ought not to have been granted.

And this presents the question' whether the award of the arbitrators is the decision required by the terms of the bond, in an action on it for damages. We think it is not. The decision contemplated by the bond, without doubt, had reference to a decision by the court on the merits of the ease, in which the action was pending. It was required and giyen in pursuance of the statute, section 5576, Revised Statutes, and could have had reference to no other decision by any known rule of construction. There is a marked difference, as we shall presently show, between such a decision and the award of the arbitrators in this case. There has been much discussion,, as to whether the arbitration had, was a common law or statutory one. If it were material to decide this we should be compelled to hold that it was a common law arbitration, Western Female Seminary v. Blair, 1 Disney, 370; Estes v. Phillips, 2 Superior Court Reporter, 3; Childs v. Updyke, 9 Ohio St., 333; Swasey v. Laycock, 1 Handy, 335; Brown v. Kincaid, Wright, 37.

These cases show that common law arbitration exists in this state, notwithstanding the statute; and if the arbitration had in this instance, was not such, it would be difficult to define the difference in the two methods. If there is any, it must be in the fact that one is made under, and substantially conforms to, the statute. But the submis[121] sion under consideration conformed in no particular to the statute — was as oblivious of the statute as if it had no existence.

This evidently' was not a matter of oversight— it was according to the deliberate purpose of the parties — they bound themselves to stand to and abide the award, whether right or wrong, the obligation being assumed without qualification. It was not made a rule of court, for it was not the agreement that it should. The cases cited show, that, as a statutory award, it would have been of no avail, for want of conformity to the statute; and that the only way effect could be given it, was to treat it as a common law award, as was done by the parties on the award being made. The principle of common law awards- was preserved to save such as could not be given effect under the statute, and many awards have been sustained by the courts, on the ground that they conformed to the liberal principles of the common law, where they could not have been sustained as awards made under the statute. Childs v. Updyke, supra.

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Columbus, Hocking Valley & Toledo Ry. Co. v. Burke, 54 Ohio St. (N.S.) 98 (Ohio 1896).

54 Ohio St. (N.S.) 98 (Columbus, Hocking Valley & Toledo Ry. Co. v. Burke) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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