Nessley v. Ladd

45 P. 904, 29 Or. 354
CourtOregon Supreme Court
DecidedJuly 18, 1898
StatusPublished
Cited by12 cases

This text of 45 P. 904 (Nessley v. Ladd) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nessley v. Ladd, 45 P. 904, 29 Or. 354 (Or. 1898).

Opinion

Opinion by

Me. Justice Wolverton.

1. Before proceeding to a discussion of the facts, we will determine a controversy which has arisen touching the practice of courts of equity involving the effect to be given to the reports of referees empowered to make findings of fact and law, and to such findings by the lower courts. The respondent contends, as expressed in the brief of his counsel, that “ the findings of a referee, in an equity case, based upon conflicting testimony, where the truth can only be arrived at by weighing the evidence and considering the credibility of the witnesses, will not be disturbed by an appellate court* This is especially true, where the referee is a lawyer of good standing, selected by the judge on account of his ability and fitness for the position, and he attends personally upon the taking of the testimony, and observes the manner and conduct of the witnesses while upon the stand, and his findings have been approved by the lower court”; while the appellant’s counsel contend that the rule is not so broad, and state it thus: “ It has been a stand[360]*360ing rule of action declared by this court that findings of fact made by a referee will not be disturbed where there is evidence to support them, but this means only that where the court is in doubt as to the determination of a controverted proposition of fact, the question will be referred to the conclusion of the referee, whose superior advantages, arising from the testimony being given in his presence, will be allowed to go in solution of the doubt.” The question involved has been alluded to a number of times in the decisions of this court, but it seems not to have been so well settled as to exclude a divergence of opinion among able counsel as to what rule has been adopted. The statute provides, Hill’s Code, § 543, that “ Upon an appeal from a decree given in any court, the suit shall be tried mew upon the transcript and evidence accompanying it.” The construction of this statute first came up in Howe v. Patterson, 5 Or. 353, and it was there insisted that the conclusions of fact found by the judge on the hearing in the court below were conclusive upon the parties on appeal. To this proposition, however, the court did not assent, but held that an appeal in an equity proceeding “removes the cause entirely, subjecting the fact as well as the law to a review and retrial.” In a subsequent case, (Fahey v. Lindsey, 8 Or. at page 478,) Kelly, C. J., says: “These (questions of fact) were controverted and contested matters before the referee, upon which a great deal of testimony was taken on both sides. And after hearing it the referee found on all these questions [361]*361adversely to appellant. Exceptions were taken by her * * * and the exceptions were not sustained by the court. In such cases this court will not reverse a decree, unless the findings of the referee are clearly against the weight of testimony, which we think is not so in this case.” This language is criticized by Watson, J., in O’Leary v. Fargher, 11 Or. at page 226, (4 Pac. 380,) which he says “is much stronger than the provisions of our Code for appeals in equity cases will warrant. In our view of the statute, an equity case is to be tried over again in the appellate court upon every issue, both of law and fact, not waived in the lower court, and without regard to the result of the previous trial, whether had altogether before the court or partly before a referee.”

This latter case seems to’ have settled the practice until the rendition of some later decisions. In Lovejoy v. Chapman, 23 Or. at page 574, (32 Pac. 687,) Mr. Justice Moobe says: “The conflict in the testimony as to the amount due the defendant renders the true account between the parties difficult of ascertainment. There are, however, some circumstances which seem to illustrate the dealings of the parties, and no doubt aided the referee in reaching a conclusion that the plaintiff's theory was correct.” Then after stating three several facts upon which it is supposed the referee acted in coming to his conclusion, he continues: “The referee had the advantage of seeing the witnesses and of hearing them testify, and from this fact he is better able to pass upon the weight of evidence than any court can be [362]*362from an inspection of' the record; and, since there are circumstances which tend, to corroborate him, we must conclude that his findings are correct, and that the defendant has inadvertently overlooked or forgotten that each mortgage or other security embraced all the preceding loans.” Again, in Bruce v. Phœnix Insurance Company, 24 Or. at page 492, (34 Pac. 16,) after stating the testimony, he says: “ Upon this contradictory evidence the .referee found that the company had not waived the condition of the policy which required proof of loss within sixty days from the time of the fire, by informing the plaintiff that the loss would not be paid. It is impossible for the appellate court, in the examination of a record, to determine the preponderance of evidence with that degree of certainty attainable by a court or referee who saw the witnesses, heard them testify, and noted their manner and appearance while on the witness stand; and the findings made under such circumstances will rarely be disturbed when there are other facts and circumstances which tend to weaken the testimony of the defeated party, or to corroborate the conclusion reached.” After this follows a discussion of the evidence in detail upon which this court’s conclusions were reached in the case. Again, in Justice v. Elwert, 28 Or. at page 604, (43 Pac. 650,) the writer says: “The plaintiffs, however, admit that they have not fully performed, but claim that whatsoever has been left undone by them was excused by the acts of Mrs. Elwert. The court below found that she refused to allow or permit plaintiffs to fully comply with the conditions of [363]*363the contract, which finding appears to be supported by the testimony, although we find much conflict therein. But the court having seen the witnesses, heard them testify, and observed their demeanor while upon the stand, its finding ought not to be disturbed, unless clearly against the weight of evidence.”

This latter proposition, in so far as it seems to state a general rule of law, is perhaps too broad, and possibly misleading; but to the extent that it indicates the method of the court in arriving at the conclusions it is not open to criticism. It will be noted that in each of these later cases this court has carefully gone through and weighed all the evidence. Indeed, it is the constant habit of the court in equity cases, though arduous and oftentimes burdensome, to carefully read and consider all the testimony accompanying the transcript, and without special reference to the findings of the referee of the court below. The statutory requirement is that the “ suit shall be tried anew upon the transcript and the evidence accompanying it,” and the court has in every instance of which we have any knowledge followed the direction of the statute in that respect. But it sometimes transpires that evidence is adduced for and against a contested proposition of apparently equal weight, when read from the depositions, as it must be here, or the evidence touching the same is very conflicting and unsatisfactory, as where one witness affirms and another of seemingly equal credit flatly denies, in such cases the findings of the referee and the court below have [364]

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Bluebook (online)
45 P. 904, 29 Or. 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nessley-v-ladd-or-1898.