King v. Beale

96 S.E.2d 765, 198 Va. 802, 63 A.L.R. 2d 746, 1957 Va. LEXIS 142
CourtSupreme Court of Virginia
DecidedMarch 11, 1957
DocketRecord 4526
StatusPublished
Cited by8 cases

This text of 96 S.E.2d 765 (King v. Beale) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
King v. Beale, 96 S.E.2d 765, 198 Va. 802, 63 A.L.R. 2d 746, 1957 Va. LEXIS 142 (Va. 1957).

Opinions

Eggleston, J.,

delivered the opinion of the court.

Cyrus W. Beale filed a motion for judgment in the court below against Doris Temple King, administratrix of the estate of Peter Henry King, deceased, in the sum of $3,000, with interest, based upon an arbitration award made by Robert G. Cabell, as arbitrator, pursuant to a written agreement between Beale and Peter Henry King. In an appropriate manner the defendant administratrix asserted the defense, among others, that the arbitration agreement and the arbitrator’s authority to act thereunder had been revoked by operation of law by reason of King’s death prior to the award, that hence the award was void and no cause of action could be based thereon. The lower court ruled against this contention and there was a verdict for the plaintiff in the amount claimed. To review the judgment entered on that verdict the present writ of error was awarded the administratrix.

On appeal the main contention of the administratrix, and the only one we need consider, is the same as that made by her in the lower court.

The material facts are not in dispute and may be summarized thus:

Cyrus W. Beale, a member of the Richmond bar, had rendered sundry legal services to Peter Henry King from June 1, 1941, through July 26, 1943. Shortly after the latter date Beale notified King that because of his health he was retiring from the practice of law and could no longer represent him. Beale told King that his fee for services rendered amounted to $3,000. King thought this charge ex[804]*804cessive and contended that the value of Beale’s services did not exceed $150. This difference was not settled and King paid Beale nothing on account.

In the spring of 1948, Robert G. Cabell, a member of the Richmond bar, whom King had employed as his counsel, deemed it necessary in the prosecution of a certain suit on behalf of King to obtain from Beale certain papers and documents, the property of King, which had come into Beale’s possession while acting as counsel for King. Beale refused to surrender these papers voluntarily to Cabell, claiming a lien thereon for his services rendered to King. King showed a willingness to pay the fair value of Beale’s services, but insisted that the charges were excessive. To resolve the situation, Beale and King entered into an agreement, which was later reduced to writing, to submit to Cabell, as arbitrator, the determination of the fair amount due to Beale. As part consideration for this agreement Beale delivered the King papers to Cabell to whom they were of considerable assistance in the prosecution of the litigation. The arbitration agreement executed by the parties is copied in the margin.1

Shortly after the arbitration agreement was signed Beale gave Cabell a detailed statement of his account for services rendered King. On several occasions in the summer and fall of 1948, Cabell called upon King for his statement as to the value of Beale’s services. King [805]*805furnished a penciled memorandum which Cabell found to be unintelligible. Although Cabell asked King to clarify or amplify this statement, he never did so. Finally, Cabell set the arbitration matter for hearing on March 28, 1949, and so notified the parties. On March 25, three days before the date set for the hearing, King died and the hearing was, of course, postponed.

On April 1, 1949, Doris Temple King, the daughter of Peter Henry King, qualified ás administratrix of his estate and employed Cabell to assist her in settling the estate. In discussing matters incident to the settlement of the estate Cabell advised her that the arbitration proceeding was pending and that since he was acting as arbitrator at the joint request of King and Beale, he could not represent her, the administratrix, in that matter. He set the arbitration proceeding for hearing on April 21, and so notified Beale, the administratrix, and Alberta King, the widow of the decedent.

On the day appointed Beale, accompanied by three members of the bar, appeared and testified before Cabell, the arbitrator. While this testimony is not incorporated in the present record presumably it related to the value of Beale’s services. The administratrix and her mother likewise appeared before the arbitrator. They were not representd by counsel nor did they testify or offer any witnesses or take part in the proceedings. The administratrix suggested that “a Mr. Bowman” who had been employed by her father as bookkeeper and auditor might be able to throw some light on the matter. She was told that she might have this witness appear before the arbitrator. However, she did not do so.

In the present case the administratrix testified that she did not comprehend the nature and purpose of the arbitration proceeding; that she understood that Cabell, who was representing her in the settlement of the estate, was acting as her counsel in the arbitration pro[806]*806ceeding. Cabell, on the other hand, insisted that he made it plain to her that he was not her counsel in this particular matter.

Cabell further testified that he had observed that the administratrix was quite well educated and was cognizant of business matters. He said: “It was my understanding that Doris King agreed that the arbitration proceeding should proceed.” However, both Beale and the administratrix testified that there was no agreement between them that Cabell should act as arbitrator of Beale’s claim against the decedent’s estate. Indeed, Beale testified that he never conferred or talked with the administratrix about the matter.

• On August 11, 1949, Cabell entered the award upon which the present suit was based. The award need not be set out in extenso. Suffice it to say that it sets out that it is based upon the arbitration agreement between Beale and King, the reasons for the execution of the agreement, the death of King on March 25, 1949, the hearing before the arbitrator on April 21, 1949, at which the various parties were present, the evidence of the witnesses given before the arbitrator, the finding that the estate of King was indebted to Beale in the sum of $3,000 for services rendered, and that such amount was due and payable on July 26, 1943.

The contention of Beale, which was adopted by the lower court, is that since he, as a consideration for entering into the submission agreement, surrendered to King’s attorney certain valuable papers which were the property of King and on which he (Beale) had a possessory lien to secure the payment of his claim for services rendered,2 the submission agreement was irrevocable by King during his lifetime and irrevocable by operation of law by King’s death.

A common-law arbitration agreement such as that with which we are concerned consists of two elements: A contract between the parties whereby they mutually agree to submit their controversy to a named arbitrator, and a grant of power by each party authorizing the arbitrator to act in his behalf and settle and determine the matter in controversy. If one of the parties to the arbitration agreement repudiates it, he thereby terminates the authority of the arbitrator to act for him. The authority of the arbitrator may likewise be terminated by operation of law, which occurs upon the death of a party to the [807]*807agreement or the death of the arbitrator himself.

By the great weight of authority such an agreement may be terminated and the authority of the arbitrator ended by either party at any time before an award has been made.

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King v. Beale
96 S.E.2d 765 (Supreme Court of Virginia, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
96 S.E.2d 765, 198 Va. 802, 63 A.L.R. 2d 746, 1957 Va. LEXIS 142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-beale-va-1957.