John A. Donahue & Son v. Barclay White Co.

9 Pa. D. & C. 303, 1927 Pa. Dist. & Cnty. Dec. LEXIS 49
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedMay 24, 1927
DocketNo. 861
StatusPublished

This text of 9 Pa. D. & C. 303 (John A. Donahue & Son v. Barclay White Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John A. Donahue & Son v. Barclay White Co., 9 Pa. D. & C. 303, 1927 Pa. Dist. & Cnty. Dec. LEXIS 49 (Pa. Super. Ct. 1927).

Opinion

MARTIN, P. J.,

The plaintiff, John A. Donahue, trading as John A. Donahue & Son, instituted this suit against Barclay White & Company, Incorporated, to recover $6221.48, with interest from Dec. 7, 1923, alleging a contract between the plaintiff and defendant dated July 14, 1922, providing for furnishing labor, materials, tools and, doing the lathing and plastering on the building described in the agreement, for the price of $12,770. Plaintiff claims for extra work done under authority of written orders from the architect, $887, making the total claim $13,657. Credit is allowed for $9810.91 paid on account, leaving a balance of $6221.48.

The amount of plaintiff’s claim was disputed by defendant, and the parties agreed to refer the matter to the Board of Arbitration of the Builders’ Exchange by an agreement that stipulated: “. . . The parties hereto hereby submit by this agreement all matters in dispute between them with regard to the amount of money which should be paid by the party of the second part to the party of the first part for work and labor or materials furnished to the said Dunwoody Home for Convalescents and Power House, under the terms of the contract hereinbefore referred to, to the said Board of Arbitration of the Builders’ Exchange under the rules and regulations of the Builders' Exchange, and subject to such rules or procedure as may be agreed upon and provided by the said Board of Arbitration of the Builders’ Exchange.”

The parties appeared before the Arbitration Board on Sept. 3, 1924. The Arbitration Board made an award to plaintiff of $3322.87, and a check for that sum was delivered to his counsel on Sept. 9, 1924. The check was tendered as payment for the full amount due by defendant to plaintiff, but was accepted under protest and as a credit upon the sum claimed by plaintiff. The amount of the check is included in the credit allowed defendant in determining the balance claimed by the plaintiff in this suit.

The award made by the Philadelphia Builders’ Exchange and Employers’ Association was, “That Barclay White & Company is entitled to pay to John A. Donahue & Son the sum of $3322.83 in full and complete settlement of the matters in dispute between the two parties as they appear in the papers and data submitted.”

Plaintiff, being dissatisfied with the award of the arbitrators, brought this action to recover the balance which he claimed, and averred that at the time [304]*304set for the hearing plaintiff appeared before the arbitrators with his witnesses, but the arbitrators refused to grant him a hearing, and one of the board said he had heard enough and left the room. Plaintiff claims that the award is not binding upon him. At the trial, counsel for the plaintiff offered to prove by a witness that he went to the meeting of the Arbitration Committee, made up of members of the Builders’ Exchange. A member of that Exchange was the defendant, Mr. Barclay White, who was at that time a candidate for the presidency of the Builders’ Exchange; that upon the arrival of Mr. Donahue in company with his clerk and superintendent, Mr. Broomall, and accompanied by counsel, Mr. Donahue was admitted to the meeting, and later his clerk was admitted; and that Mr. Donahue offered to give his reasons for the extra charge or costs for the services of plasterers; that this was refused; and that, before he could be further heard, a member of the Arbitration Board, to wit, one Mr. James Davies, took up his hat and said he did not wish to hear anything further, and walked out and left Mr. Donahue present.

This offer was objected to by the attorney for defendant because the offer did not rise to the dignity of such an allegation of fraud as would vitiate the findings of any arbitrators; the absence of a right to go into the procedure before the board; that the objections were not made to the board, or until after the award was made; and that nothing was done by way of criticism or exception to the conduct of the board until this suit was brought, and that some of the allegations are not within the statement of claim. While the statement of claim sets up certain allegations, it does not allege fraud participated in by the defendant, which is essential to take it out of the binding effect of an arbitration.

The objections were overruled by the trial judge, the evidence was submitted and the verdict was for plaintiff in the amount of $2754.55, with interest from May 7,1924. A motion was made by the defendant for judgment non obstante veredicto, and a rule entered for a new trial.

If the award of the arbitrators is binding upon the plaintiff, the defendant is entitled to judgment non obstante veredicto.

Bouvier’s Law Dictionary (3rd ed.), at page 225, defines “arbitration” as “the investigation and determination of a matter or matters or differences between contending parties, by one or more unofficial persons chosen by the parties, and called arbiters or referees.”

“Arbitration” is defined by Webster as the “act of arbitrating; especially the hearing and determination of a ease between parties in controversy, by a person or persons chosen by the parties, or appointed under statutory authority, instead of the judicial tribunal provided by law; the hearing and determination of a matter in dispute by an arbitrator or arbitrators. The matter may be submitted by an agreement, usually called a submission, to one arbitrator or two, who are to choose a third, called an umpire. The decision is called an award. At common law, arbitration is entirely voluntary and a submission to arbitration is revocable by either party, or avoided by his death before the award is fully made. . . . The scope and method of arbitration are not bound by the rigid rules or legal procedure which are binding upon a judicial tribunal, whether acting by itself or by a referee in an amicable suit or otherwise.”

The courts have always encouraged amicable settlements between parties litigant, either by arbitration or otherwise, and it is a well-known rule of law that neither party to an action will be permitted to introduce at the time of hearing any negotiations between the parties litigant that were made in an attempt to settle or compromise the case. This rule is important; and just [305]*305as important that where parties have voluntarily submitted their matters in dispute to a board of arbitrators, they should be bound by the award of the board, unless it be shown by evidence that is clear, precise and indubitable that the parties were not given a hearing, and that there was fraud, misconduct or corruption or some other irregularity on the part of the arbitrators which caused the board to render an unjust, inequitable and unconscionable award.

An award will not be disturbed except for very cogent reasons. It will be set aside for misconduct, corruption or irregularity of an arbitrator which had or may have injured one of the parties: Walls v. Wilson, 28 Pa. 514.

The attorney for the plaintiff, at the time of the trial, referred the trial judge to the case of Kann v. Bennett, 234 Pa. 12, and argues that the conduct of Mr. Davies in getting up and leaving the room was such as would warrant the court in holding that the award should be set aside by reason of the misconduct of this arbitrator. Mr. Justice von Moschzisker, in his opinion, stated: “. . . So long as the architect acted independently without fraudulent collusion with the owner, his decision was final in all matters within the scope of his authority under the contract.

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Bluebook (online)
9 Pa. D. & C. 303, 1927 Pa. Dist. & Cnty. Dec. LEXIS 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-a-donahue-son-v-barclay-white-co-pactcomplphilad-1927.