Keachie v. Starkweather Drainage District

170 N.W. 236, 168 Wis. 298, 1919 Wisc. LEXIS 58
CourtWisconsin Supreme Court
DecidedJanuary 7, 1919
StatusPublished
Cited by16 cases

This text of 170 N.W. 236 (Keachie v. Starkweather Drainage District) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keachie v. Starkweather Drainage District, 170 N.W. 236, 168 Wis. 298, 1919 Wisc. LEXIS 58 (Wis. 1919).

Opinions

Owen, J.

The question of ranking importance is whether the court erred in reading out of the contract the provision that “In the interpretation of these specifications and the contract and upon all questions concerning the execution of the work the decision of the commissioners shall be final.” Whether this provision of the contract is valid should be met at once', because of its commanding influence on the rights of the parties hereto.

This provision differs from the ordinary provision of like tenor found in nearly every building or construction contract only in the personnel of the arbitrators or umpires appointed to decide upon the contract, specifications, and work. If the word “architect” be substituted for the word “commissioners,” we will have here a provision that is usual and customary in construction contracts. The effect of a provision of this kind is not doubtful. It is well settled in the law. It is not void because it ousts the court of jurisdiction, as earnestly contended by respondents. This court, in Hudson v. McCartney, 33 Wis. 331, gave full scope and effect to a provision of this nature in no uncertain terms, and the [304]*304language of that case has since frequently met with approval. Oakwood Retreat Asso. v. Rathborne, 65 Wis. 177, 26 N. W. 742; Bentley v. Davidson, 74 Wis. 420, 43 N. W. 139; Wendt v. Vogel, 87 Wis. 462, 58 N. W. 764; Chapman v. Rockford Ins. Co. 89 Wis. 572, 62 N. W. 422. It is firmly established that, where matters are thus left to the decision of an architect, his decision is final unless impeached for fraud, accident, or mistake; and “the mistake here referred to is not a mere error in judgment as to the quality of the work or the responsibility for defects therein, upon conflicting evidence, which may be overthrown by a preponderance of evidence before the jury, but it means unintentional misapprehension or ignorance of some material fact, and it must be clearly established by the evidence, and so gross and palpable that it is equivalent in its effects to dishonest, fraudulent, Or merely arbitrary action.” Wendt v. Vogel, 87 Wis. 462, 466, 58 N. W. 764. This principle was recognized by the trial judge, but he seemed to be of the opinion that such powers could not be conferred upon one of the parties to the contract, and this "notwithstanding the fact, fully recognized, that this court has repeatedly enforced contracts where they were agreed to be performed to the full satisfaction of one of the contracting parties. Exhaust V. Co. v. C., M. & St. P. R. Co. 66 Wis. 218, 28 N. W. 343; Warder, Bushnell & Glessner Co. v. Whitish, 77 Wis. 430, 46 N. W. 540; Parr v. Northern E. M. Co. 117 Wis. 278, 93 N. W. 1099; Manning v. School Dist. 124 Wis. 84, 102 N. W. 356.

Given the premise that one may lawfully contract to perform certain work according to plans and specifications to ■the satisfaction of a third party, and that contracts to be ■executed to the satisfaction of one of the contracting parties will be enforced, it is difficult to appreciate the logic which condemns a contract to be pérformed according to plans and •specifications to the satisfaction of the other contracting party. Certainly no consideration of public policy, calls for the condemnation of one that does not also condemn the [305]*305other.. The powers and duties oí the one appointed as arbiter are not materially different in the one case than in the other. In neither case can the arbiter act arbitrarily or capriciously/ There must be the exercise of honest judgment, and the person performing the contract is not to be denied the fruits thereof by a fraudulent, arbitrary, or capricious action on the part of the other.

Such considerations, however, do not constitute the underlying reason for upholding the contract. That reason is well stated in Delaware & H. C. Co. v. Pennsylvania C. Co. 50 N. Y. 258, as follows:

“When the parties stand upon an equal footing, and intelligently and deliberately, in making their executory contracts, provide for an amicable adjustment of any difference that may arise, either by arbitration or otherwise, it is not easy to assign at this day any good reason why the contract should not stand and the parties made to abide by it, and the judgment of the tribunal of their choice.”

Whether this is a wise or provident contract is entirely beside the question. That is something with which courts are not concerned. There is no doubt that parties may contract in such cases to submit such .differences to an umpire or arbiter and agree that his decision shall be final. The validity of that agreement is not dependent upon the relation which the arbiter bears to the parties. They may agree to partial as well as impartial arbiters if they see fit to do so. Courts have no reason to interfere with the rights of parties to voluntarily contract in the one case that they do not have in the other. We therefore hold that this provision of the contract is valid and operates to confer upon the commissioners the same powers that are conferred' upon architects by similar provisions in building-contracts. .

But this does not settle the case, as the trial judge seemed to think, as indicated by the suggestion in his opinion that if the provision be thus construed there was nothing left -for the court to do but to render judgment on defendant’s coun[306]*306terclaim. True, it does mean that some dignity attaches to the findings of the commissioners that the contract has not been performed in accordance with the specifications, which findings were accorded scant consideration by the trial court, to put it mildly, In fact, it means that their findings concerning the amount of material remaining unexcavated to complete the contract are final, binding, and conclusive unless impeached for fraud, error, or mistake so gross as to amount to constructive fraud on their part. This applies as well to other delinquencies on the part of the contractors, if there be any. Notwithstanding this, however, the question of the ultimate right of the plaintiffs to recover is for the determination of the court.

The plaintiffs urge numerous reasons for the avoidance of the rather disastrous effect of the findings of the commissioners upon their right to recover, which we will now consider.

As we proceed, it is necessary to bear in mind certain facts not yet appearing. As set forth in the statement of facts, it was found necessary to prosecute a considerable portion of the work by the use of a floating dredge. The proper and efficient way of using a. floating dredge is to dig down stream. The water from above tlien fills the ditch and is held back by the lower end thereof against which the dredge is working. Thus sufficient water is maintained to keep the dredge afloat and up with its work. The water, too, carries the loose material and débris down stream ahead of the dredge and the ditch cleans itself. In digging up stream it is necessary to build dams below the dredge for the purpose of holding' water to enable it to continue its progress up stream. In such case the slush and mud stirred up by the dipper of the dredge floats under the dredge and back down the ditch where it lodges somewhere along the course and fills up the ditch. The dams must be removed and, when that is done, slush, mud, and débris are let down the ditch below the dam and tend to fill up the lower stretches of the ditch.

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Cite This Page — Counsel Stack

Bluebook (online)
170 N.W. 236, 168 Wis. 298, 1919 Wisc. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keachie-v-starkweather-drainage-district-wis-1919.