Eliot v. Coulter

76 N.E.2d 19, 322 Mass. 86, 1947 Mass. LEXIS 738
CourtMassachusetts Supreme Judicial Court
DecidedDecember 2, 1947
StatusPublished
Cited by15 cases

This text of 76 N.E.2d 19 (Eliot v. Coulter) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eliot v. Coulter, 76 N.E.2d 19, 322 Mass. 86, 1947 Mass. LEXIS 738 (Mass. 1947).

Opinion

Lummus, J.

A part of the land now covered by the store building on Washington Street in Boston occupied by Wm. Filene’s Sons Company was leased on May 29, 1911, to the then trustees of the Business Real Estate Trust of Boston, by the then trustees under the will of Luther Adams for the term of ninety-nine years beginning [87]*87October 1, 1911, at an annual rental which on October 1, 1946, became “four and one half (4 %) per cent per annum of the fair valuation of the land comprised in the premises; said fair valuation to be determined at the end of the first thirty-five (35) years [that is, on October 1, 1946] and once every ten (10) years thereafter during the continuance of the lease, by three (3) disinterested parties or a majority of them, one to be chosen by the lessors, one by the lessees and one by the two so chosen; the expense of such appraisal to be equally divided between the lessors and the lessees it being understood however, that in no event shall the annual rental at any time during the continuance of this lease except as above provided, be less than eighteen thousand dollars ($18,000) net to the lessors . . ..” The foregoing is the. lease that is material to the case entitled as above, and numbered 58460 Equity in the Superior Court.

Another part of the land now covered by said store building was leased on May 31, 1911, to the said trustees of the Business Real Estate Trust of Boston by one George A. Dill, for a similar term. The lease provided that the rent for the period from October 1, 1946, to September 30, 1956, should be “four and one half per cent (4}4%) of the combined sum of (1) the fair value, at noon of August 1, A. D. 1946, of the land now comprised in the premises . . . and (2) twenty-two thousand dollars ($22,000) (said $22,000 being the estimated present value of the building now on the premises) per year for the next ten years of said term (that is, for the period from October 1, A.D. 1946, to September 30, A.D. 1956, inclusive) . . ..” It was provided that at least sixty days prior to October 1, 1946, “the lessor, or his heirs or assigns, shall in writing designate some disinterested person as an arbitrator for the purposes herein mentioned, and the lessees or their representatives, successors or assigns shall in writing designate some disinterested person as an arbitrator for the purposes herein mentioned, and said two arbitrators so designated shall ... in writing designate a third disinterested person as a third arbitrator for the purposes herein mentioned.” It was provided that “The fair value of the land ... as so deter[88]*88mined and reported by said arbitrators or a majority of them shall be deemed the fair value of the land now comprised in the premises . ¡ . for the period of ten years . . . with reference to which they shall have been designated, and four and one half per cent (4lA%) of the combined sum of (1) said fair value of the land now comprised in the premises ... as so determined and reported and (2) twenty-two thousand dollars ($22,000) shall be the yearly rent for such period of ten years . .

A third part of the land now covered by said store building was leased on May 1, 1911, to the said .trustees of the Business Real Estate Trust of Boston by the trustees under the will of James B. Pickett for a similar term. The lease provided that the rent after October 1, 1946, should be “four and one half (4)/0 per cent per annum of the fair valuation of the land comprised in the premises, said fair valuation to be determined at the end of the first thirty-five years [that is, on October 1, 1946] and once every ten years thereafter during the continuance of the lease, by three disinterested parties, or a majority of them, one to be chosen by the lessors, one by the lessees and one by the two so chosen . . ..”

In 1946 the lessees then holding under the Adams lease appointed John C. Kiley to determine the fair value of the premises, the lessors appointed Alfred S. Beck, and those two appointed Robert S. Wayland. The same persons were chosen under the Dill lease. The same persons were chosen under the Pickett lease, except that Elliott Henderson took' the place of Alfred S. Beck. Each of these three boards determined the fair value of the land for the determination of which it was appointed, by a majority of such board, said John C. Kiley dissenting. The valuations were made without hearing the lessees, although they asked to be heard. The lessees contend in each case that the valuation was grossly excessive, and was made upon unsound principles and methods of calculation. The lessees holding the three several parcels, on December 3, 1946, brought these bills, praying that the awards be declared void and restraining the lessors from claiming rent under them. The plaintiffs [89]*89were required to file specifications. The several defendants demurred, and their demurrers were sustained subject to the plaintiffs’ appeal, and the bills were dismissed. The plaintiffs appealed from the final decrees dismissing the bills.

The main question concerns the nature and effect of the provision for arbitration by three disinterested persons. In one of the leases those persons were called arbitrators, while in the others they were spoken of merely as disinterested parties or persons. They Were not arbitrators in the technical sense, for there was no existing claim to be arbitrated. There was only a valuation to be made that would in the future prevent a resort to the courts or to technical arbitration. The leading case in this Commonwealth is Palmer v. Clark, 106 Mass. 373. In that case, at page 389, Colt, J., said, “A reference to a third person to fix by his judgment the price, quantity or quality of material, to make an appraisement of property and the like . . . differs in many respects from an ordinary submission to arbitration. It is not revocable. The decision may be made without notice to or hearing of the parties, unless such notice and hearing be required by express provision or reasonable implication; and it may be made upon such principles as the person agreed on may see fit honestly to adopt, or upon such evidence as he may choose to receive.” This language was repeated in McGurk v. Standard Plate Glass Co. 207 Mass. 583, 585. In Audette v. L’Union St. Joseph, 178 Mass. 113, 115, Loring, J., said, “It is settled here that in contracts for erecting buildings or doing other work where it is stipulated that the quantity or quality of the work to be done shall be determined by an engineer or architect whose decision shall be final, it is not open to either party to show, when the engineer or architect has passed upon the question submitted to him, that he was in error and ought not to have given a certificate when he in fact gave one ... or that the certificate given by him was erroneous.” In New England Trust Co. v. Abbott, 162 Mass. 148,153, where directors were, by agreement, to appraise and take the stock of a decedent stockholder at their valuation, it was said that “The di[90]*90rectors were not bound to give the defendant [executor] notice or a hearing” before the appraisal.

The doctrine of Palmer v. Clark was applied, in Hanley v. Aetna Ins. Co. 215 Mass. 425, 428, 429, to a provision in an insurance policy for determining the amount of loss by appraisers selected by the parties, and it was held that the appraisers could act without a hearing. See also Clark v. New England Telephone & Telegraph Co. 229 Mass. 1, 10. Compare under a later state of insurance law,

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Cite This Page — Counsel Stack

Bluebook (online)
76 N.E.2d 19, 322 Mass. 86, 1947 Mass. LEXIS 738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eliot-v-coulter-mass-1947.