Moore v. Luckess' next of Kin

23 Va. 160
CourtSupreme Court of Virginia
DecidedFebruary 5, 1873
StatusPublished

This text of 23 Va. 160 (Moore v. Luckess' next of Kin) 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
Moore v. Luckess' next of Kin, 23 Va. 160 (Va. 1873).

Opinion

Staples, J.

It may be considered as well settled, that arbitrators, being judges of the parties’ own selection, have rightfully the power to decide and finally adjudicate the law and the facts of the case submitted to them.

They may disregard the law entirely, and decide upon principles of equity and good conscience exclusively. If, however, they mean to conform to the law, and they plainly mistake it, such mistake is sufficient to invalidate the award.

There is no controversy in regard to these principles. The real difficulty lies in determining the effect of a mistake of law made by the arbitrators, not apparent on the- face of the award or some paper incorporated with and constituting a part of it.

The question is, may such mistake be established by extrinsic evidence?

It is said by Judge Story, in 2 Eq. Jur., 1455, “If the arbitrators mean to decide strictly according to law, and they mistake it, although the mistake is made out by extrinsic evidence, that will be sufficient to set aside the award.”

In support of this proposition he cites a number of cases; which, however, do not sustain the proposition in [165]*165the unqualified terms thus asserted. See also 9 John. R. 263; Kyd. on Awards, 350; 3 Atk. R. 462, 492.

On the other hand there is a great weight of authority in favor of the doctrine that there must be something on the face of the award, or some paper connected with it, to show that the arbitrators have proceeded on grounds not sustainable in point of law.

The courts, however, while professing to maintain this latter rule, have in many cases of real or supposed hardships, allowed exceptions and modifications, which make it very difficult to deduce any established principles from these decisions. Thus, relief has been given where the mistake was clearly established by reference to some authentic document accompanying, though not expressly referred to in the award. See cases cited in Moore on Arbitrament and Award, 336. The reason of this exception is apparent. The rule which excludes testimony to impeach an award for mistake of law or fact, is amere rule of evidence founded upon considerations of public policy, the repose of society, and the end of litigation.

If the court, however, has before it evidence of such mistake, plain and palpable, equally authentic and satisfactory as that furnished by the award, there is no valid reason why such evidence should not be received and considered. Thus, where the order of reference is made in a pending cause, and the arbitrators have before them the pleadings and exhibits filed in the case, duly consider them, and return them to the court with their award; and if it appears from an inspection of the whole that the arbitrators have made a plain and palpable mistake of law, there can be no solid ground for refusing relief in such cases. Eo court that I am aware of, has ever held' that a mistake so made out cannot be relieved against.

[166]*166This case furnishes a most apt and striking illustration of the necessity and wisdom of this doctrine.

The facts briefly stated are as follows: In the year 1860 three actions of debt were instituted in the Circuit court of Rockbridge county against the appellant, by the executors of W m. Luckess, upon various bonds executed by the appellant to Luckess. The appellant pleaded payment, and filed with his plea an account of set-offs. These actions remained on the docket until the year 1866, when all the matters in litigation were referred to the decision of two arbitrators, or their umpire. When the cases came on to be heard before the arbitrators, the executor relied on the statute of limitations in bar of a large portion of appellant’s account; and he submitted to the arbitrators a written statement of his construction of the law governing the case. The arbitrators have testified it was their purpose to disallow all items of the account barred by the statute. The presumption is, they intended to do so, because the claim is against the estate of a decedent, and the statute plainly prescribes the rule in such cases.

Independently of the statements of the arbitrators and of any presumptions on the subject, it is apparent from the award itself, the, pleadings and exhibits filed in the actions at law, that the arbitrators have only intended to allow so much of the account as was not affected by the operation of the statute. The award finds for the executors all the bonds, amounting in the aggregate to $6,746 28. It then proceeds to dispose of appellant’s account of set-offs, which, in fact, was the only matter in. controversy.

It will be observed that the award does not allow a single item of the account previous to the year 1855; but, with the exception of an abatement in one charge, it does allow all the items subsequent to that period. It [167]*167enumerates these items, sums and dates, all corresponding, and allows interest upon each from the period charged.

This account is, therefore, as unmistakably identified by the award as if it had been, incorporated in and made a part of it. It is the identical paper filed in the actious at law, relied on before the arbitrators, and made the basis of their award.

It is equally clear that the arbitrators, in applying the statute, have mistaken the law, and allowed a large portion of defendant’s account, which ought to have been rejected. This is apparent from the award, the account, and the pleadings in the actions of debt. There is no pretence of any such promise'by Luckess, in his life time, as will remove the bar of the statute. The ground taken by the appellant, before the arbitrators, was, “that his account was a continuous debt running from the 17th of May 1845, until the death of Luckess, being based on promises and inducements held out from time to time by Luckess, to make some provision in his will for appellant;” which proved to be false; and which fact could not be ascertained until Luckess’ death.”

But, clearly, this was insufficient, and was very properly disregarded by the arbitrators. It is very clear their mistake originated in the belief that the institution of the suits by the executors, arrested the running of the statute, as to appellant’s account; whereas the period of filing that account was the proper one to be considered in fixing the time when the statute ceased to operate. Indeed it was conceded in the argument, that the arbitrators had plainly mistaken the law, in allowing those items of the account within the operation of the statute of limitations. It was said, however, they were misled by the executor, and the estate must bear the loss.

[168]*168It is true, as a general rule, that mere mistakes of law afford no ground of relief in courts of law or equity. This rule, however, has no application to this case.

It is impossible to maintain that a mere mistaken admission of the law by a fiduciary can revive, as against the estate he represents, a debt barred by the statute, when his express promise can have no such effect. Such an admission would not justify an arbitrator, in disregarding the law, any more than it would avail in a court of justice.

If the arbitrator intends to conform his award to the law, but fails to do so, and such mistake plainly appears, I take it the courts would grant the necessary relief in favor of infant distributees, however much the executor may have contributed to the mistake.

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23 Va. 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-luckess-next-of-kin-va-1873.