Daniels v. Willis

7 Minn. 374
Supreme Court of Minnesota·Decided July 15, 1862·Published·Cited by 10 cases

Opinion

By the Court

Atwater, J.

A number of notes and chattel mortgages, and a suit with matters involved therein pending in the United States District Court, were submitted to the arbitrators selected by the parties, for their final determination thereon. The arbitrators made and filed their award. The Plaintiff in Error moved to vacate and set aside the award, upon certain grounds specified in the notice of motion. The motion was overruled, and judgment was entered in the District Court upon the award, and in pursuance of the terms thereof, in favor of Willis. Daniels thereupon sued out a writ oí error.

[377] Two principal grounds were alleged in the Court below, upon the motion to set aside the award, viz:

1st. That the arbitrators exceeded their powers.

2d. That the arbitrators so imperfectly executed their powers as arbitrators, that a mutual, final and definite award on the subject matters submitted was not made.

The arbitrators determined that "Willis was entitled to the possession of certain personal property described in the chattel mortgages, which formed a part of the subject of the submission, and also awarded that the same -.be sold at public auction, and the proceeds be applied toward paying the expense of keeping the same, the expenses of the arbitration, and the balance apply toward the liquidation of the amount found due from Daniels to Willis. It is claimed that the arbitrators had no authority to order such sale, and appropriate the proceeds.

The provision on this behalf in the submission papers, is as follows, viz: ■

“And it is hereby further agreed by and between the parties hereto, that the-property taken by the United States Marshal, or any of his deputies or agents, or by the said Plaintiff or any of his agents, either by virtue of the said writ of replevin, or in any other manner, or upon any other process or upon any pretension whatever, shall be and remain in the hands of W. B. Gere, the said United States Marshal, subject to all the rights of either party in said action, and subject to the award of said arbitrators, the same as though the rights of said parties herein were determined by said Court, with the exception only, that in no case either party shall have the possession of said property, except by the award of said arbitrators.”

It appears from this that the property was to remain in the hands of the Marshal, subject to all the rights of either party in said action, and subject to the awards the same as though the rights of said parties herein were determined by said Court. ' If the finding of the Court had been that Willis was entitled to the possession of the property, a sale, perhaps, could not properly have been ordered. But "Willis would I have been the only party entitled to object to the same. It [378] is stipulated that neither party shall have possession except under the award. Daniels certainly was not entitled to the possession under the award, and it does-not appear that he is in any manner injured by having the property sold. On the contrary it would appear that he is actually benefited, since the proceeds of the sale were to be applied in part towards payment of the debt due from him to Willis. It may be questionable, even, whether the arbitrators, under the broad authority specified in the submission papers making this property subject to the award, have exceeded their powers, in ordering a sale of the'property. But however this may be, we think the Plaintiff in Error is not in a position to urge the objection. It is well settled that an an award will not be set aside in equity, on account of an! omission to act upon the matters submitted, unless that omission should have inj ured the party complaining. Davy vs. Faw, 7 Cranch, 171. And courts of law are still less liberal than those of equity in regard to setting aside awards. The principle above stated is equally applicable to cases where the arbitrators have exceeded their powers, as where they have failed to exercise those actually conferred.'

Upon the second ground of objection it is urged, that the arbitrators made no award whatever in relation to the replevin suit pending in the United States District Court, or the matters involved therein. It would be a sufficient answer to this objection, that this Court has no proper means of judging whether this specification is well founded or not, since tlio pleadings in that action are not before the Court, and it can at best only surmise what the issue or some part of the issue in that action was. So far, however, as the papers in this suit do throw any light on the subject, the objection appears to be without foundation. It may be inferred that the action, of replevin was brought to recover possession, of the property, or some of it, described in the chattel mortgages, which formed a part of the subject of submission. With reference to this property, the arbitrators have awarded that Willis was entitled to possession of a part, and in regard to another part, that. neither party were entitled to possession. They have thus considered the matter, and made an award upon it, and [379] so exercised, to some extent at least, the power conferred upon them. And at all events, tbe Plaintiff in Error hás not presented a state of facts to this Court, to enable it to decide that the arbitrators have committed an error upon the point here raised.

It is further objected that the arbitrators made no award whatever as to the two thousand dollar note made by Freeborn, Moss and Daniels, dated October 3,1866.

In regard to this note, the statement of the award is as follows, viz:

“That the title to the promissory note of $2,000, dated October 3d, 1856, made by ¥m. Freeborn, H. L. Moss, and Joseph Daniels, payable one year from date, being the note first mentioned and described in said articles of agreement and submission, has not been sufficiently proven to b.e in the said Ira "Willis, and all questions arising upon said note have not been passed upon by us.”

It appears from the above that the arbitrators did take the note into consideration, and heard some evidence in regard to the same, sufficient, at least, to determine that Willis (who probably claimed to be the owner) had not proved title in himself. They further say that all questions arising upon said note have not been passed upon by them. What these questions were does not appear, nor whether the Plaintiff in Error had any interest in their determination. The arbitrators did certainly act upon and consider the note, and, so far as this Court can judge, sufficiently to release Daniels from any obligation to Willis thereupon. ■ It does not appear that it would have been competent or pertinent for the arbitrators to have gone farther and decided in whom the title of the note was, as none but the parties to the arbitration could be bound by the award. Nor, even were it competent for the arbitrators to decide such question, does it appear there was any evidence before them upon which they could properly act. There is no error apparent in this specification upon which the award should be set aside.

It is further objected, that the arbitrators made no award whatever as between these parties, as to the promissory note and chattel mortgage made by Ara Barton, bearing date February 21,1860.

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Daniels v. Willis, 7 Minn. 374 (Mich. 1862).

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