Slater v. La Grande Power Co.

72 P. 738, 43 Or. 131, 1903 Ore. LEXIS 38
CourtOregon Supreme Court
DecidedJune 8, 1903
StatusPublished
Cited by3 cases

This text of 72 P. 738 (Slater v. La Grande Power Co.) 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
Slater v. La Grande Power Co., 72 P. 738, 43 Or. 131, 1903 Ore. LEXIS 38 (Or. 1903).

Opinion

Mr. Chiee Justice Moore,

after stating the facts in the foregoing terms, delivered the opinion.

It is contended by plaintiff’s counsel that their client [135]*135having no notice of the time and place of hearing before the arbitrators after Scranton’s appointment, and not having waived his right to appear before them and offer his evidence, any conclusion they may have reached in respect to the sum due either party is void, and, this being so, that the court erred in dismissing the suit, and in not foreclosing the lien for the sum prayed for in the complaint. The transcript fails to show that any notice was ever given to the plaintiff of the time and place of hearing before the three arbitrators, or that he ever in any manner waived the right to be heard, though he knew they were in session after Scranton met with the others, but did not know that Thornton had withdrawn until the award had been made by the other two. The plaintiff and the defendant’s agents went before Thornton and Stuart prior to their disagreement, and made statements concerning their respective claims against each other; but neither party appeared or offered any evidence after Scranton was selected. Thornton being an architect, Stuart a mechanic, and Scranton a millwright, it might reasonably seem to be inferred from their several qualifications .that they were selected because of their peculiar knowledge of the matters submitted to them, so that a hearing was thus made unnecessary (Morse, Arb. p. 143; Stemmer v. Scottish Ins. Co. 33 Or. 65, 49 Pac. 588, 53 Pac. 498 ; Wiberly v. Matthews, 91 N. Y. 648); but, as the parties appeared before and made statements of their respective demands to Thornton and Stuart prior to their disagreement, any inference that might seem to be deducible from the special qualifications of the abitrators is dispelled. This conclusion is strengthened by the fact that Scranton never inspected the work so as to qualify himself to determine the reasonable value of the labor performed or material furnished, for on cross-examination, in answer to the question, “Did you go up there and examine that dam ?” he [136]*136said, “No, sir; I have been over the dam two or three times, but never went to examine it.” In Falconer v. Montgomery, 4 U. S. (4 Dall.) 232, a submission having been made to two arbitrators with power to choose an umpire if they disagreed, an umpire was appointed, who received a statement of the case from the arbitrators, in the absence of the parties, and without giving them a hearing, and it was held that the award should be set aside; the court saying: “The plainest dictates of natural justice must furnish to every tribunal the law that ‘no man shall be condemned unheard.’ It is not only an abstract rule or positive right, but it is the result of long experience and of a wise attention to the feelings and dispositions of human nature.”

The rule in this country is quite general that, in the absence of any stipulation of the parties regulating the matter, the duty of giving notice of the time and place of hearing upon the submission of a controversy devolves upon the arbitrators, but the manner of giving it, so long as it is reasonably adequate to accomplish the purpose for which it was designed, rests largely in their discretion : Morse, Arb. p. 118. In Wood v. Helme, 14 R. I. 325, a dispute concerning a building contract was submitted to two arbitrators under a stipulation that, if they could not agree, they were to choose a third, the decision of any two of them to be final. A disagreement having occurred, a third arbitrator was chosen, who, in company with one of the others, visited the premises, and heard ex parte statements from the defendant’s brother concerning the matter submitted, in the absence of the plaintiffs, and without notice to them. An award having been made, it was set aside as void, the court, in speaking of the duty of arbitrators under a submission silent in respect to notice, saying: “Without question it was the duty of the arbitrators, under the submission in this case to give due notice to the parties [137]*137of the time and place of hearing the cause before proceeding therein.” Further in the opinion it is said: “And it makes no difference in this respect that there has been a regular hearing in the case before the two arbitrators originally chosen, who were unable to agree, and thereupon called in a third person; for the proceeding then commences de novo, and the parties are entitled to the same notice as though no proceeding had been previously had.” In Day v. Hammond, 57 N. Y. 479 (15 Am. Rep. 522), a controversy was submitted to two arbitrators in pursuance of like terms, and, a disagreement having resulted, a third ai’bitrator was chosexx, who, with one of the others, made axx award without hearing the parties, axxd it was held that the failure to have a rehearing upon due notice to them rendered the award invalid, the court sayixxg: “There is xxo necessity to take proceedings in equity to set the award aside.” In the case at bar the plaintiff xxever received any notice from the arbitrators, after Scrantoix was appoixited, of the time or place of hearing, though he knew they were in session in the office of the defeixdaxxt company. He had no knowledge, however, that the arbitrator selected by him had withdrawn, or refused to consider the matters submitted to him axxd his associates. The x*ight to hear and determine the subject-matter in proceedings of this character is conferred by the submission, while jurisdiction of the parties, ixi the absence of any stipulation, prescribing the time and place of hearing, or of axiy waiver thereof, is secured by notice to them from the arbitrators. Thornton aixd Stuart having failed to agree, Scranton, ixpon being selected and acceptixxg the appointment, ipso facto becaxne a xxxember of a new board of arbitrators, the hearing before whoxn was a trial de novo upon the merits of the coxxtroversy: Wood v. Helme, 14 R. I. 325. True, the plaintiff knew the arbitrators were in session when Scranton undertook the performance of the duty ixxcident to axi [138]*138acceptance of his appointment, but, as he assumed that he was being represented by Thornton, who, without his knowledge, withdrew from the conference, and as jurisdiction of the person is secured by notice of some character, emanating from the arbitrators, their failure to notify him of the time and place of the rehearing, so as to afford him an opportunity to introduce his evidence and to make an argument in support thereof, if he so desired, renders the award void, and, this being so, it may be challenged in a collateral proceeding when an opportunity offers, such as this suit affords: Day v. Hammond, 57 N. Y. 479; Elmendorf v. Harris, 23 Wend. 628 (35 Am. Dec. 587). Having reached the conclusion that the award is void for lack of notice, it is unnecessary to consider other reasons assigned by plaintiff’s counsel as grounds for setting it aside.

Having found that the court erred in dismissing the suit, there remains to be ascertained the amounts due the plaintiff for the extra labor and material necessitated by a change in the plans and the credits to which the defendant is justly entitled for causing the rock to be furnished for the crib, the value of the material saved by reducing the size of the dam, and the damage, if any, that it sustained in consequence of the manner of driving the sheet piling.

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Bluebook (online)
72 P. 738, 43 Or. 131, 1903 Ore. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slater-v-la-grande-power-co-or-1903.