Stose v. Heissler

11 N.E. 161, 120 Ill. 433
CourtIllinois Supreme Court
DecidedMarch 22, 1887
StatusPublished
Cited by20 cases

This text of 11 N.E. 161 (Stose v. Heissler) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stose v. Heissler, 11 N.E. 161, 120 Ill. 433 (Ill. 1887).

Opinion

Mr. Justice Shope

delivered the opinion of the Court:

The question presented by this record is, whether the court below erred in sustaining the demurrer to the first, second and third counts of the plaintiff’s declaration. By the first count the plaintiff sought to recover $215, a month’s rent, according to the terms of the written lease, and relying upon the finding of two of the three referees chosen under the provisions of the lease, as an award final and conclusive as to the rent to be paid under the lease. The lease does not show, upon its face, that he is entitled to receive that sum per month for the use of the demised property after May 1, 1884. In the lease, the parties did not fix the rent from and after that date, but provided a mode by which it was to be determined, and, when ascertained in that mode, was to be as binding as if fixed by themselves and inserted in the lease. The monthly rental after May 1, 1884, was to be fixed by three disinterested persons, owning and renting property in Chicago, each of the parties to the lease to select one, and those thus chosen to select the third. The parties had the right to make such an agreement, and if the persons so selected had agreed upon the rent to be paid, their decision, in the absence of fraud, would have been conclusive upon the parties. The language of the lease on this point is: “The rent for the remaining four years, from May 1, 1884, to May 1, 1888, to be made and agreed upon by three disinterested parties, ” to be chosen, etc. The plaintiff contends that the provision for the selection of three persons to fix' the rent, indicates an intention that a majority might fix the rent, otherwise an odd number would not have been agreed upon. In this respect, the submission does not differ from an ordinary submission to arbitrators, and the power of the referees to make a binding award should be construed in the same way. The matter of fixing the rent was confided to the judgment, experience and discretion of the persons nominated by the parties and the one to be selected by such nominees. The confidence of the parties was in the united judgment of the three, and they agreed to be bound by nothing less than their concurrent judgment. If the conclusion of Campbell and Sinclair is to be taken, it can not be said that the rent has been agreed upon “by three disinterested persons. ”

We do not think the reference in this case was an arbitration, in the strict sense, for the reason that when the lease was made there was no difference or dispute between the parties to be settled, nor was there any at the time the referees were selected, and, as stated by this court in a similar case, (Norton v. Gale, 95 Ill. 533,) “the object was to preclude or prevent the arising of differences,—not to settle differences which had arisen.” In that case, the rent, after five years, was fixed at six per cent of the appraised value of the demised premises, and before the end of the five years each party was to select an appraiser, who were to select a third in ease they could not agree, and their award was to be final. The two appraisers did agree, but failed to give the parties notice of the time and place of their meeting, which failure to give -the parties an opportunity to be heard would have been fatal,-had the proceeding been an arbitration of matters in dispute. This court held that there was no arbitration, referring to Leeds v. Burroughs, 12 East, 1; Lee v. Hemingway, 3 Nev. & M. 860; Collins v. Collins, 26 Beav. Ch. 306; Garred v. Macey, 10 Mo. 161; Currey v. Lackey, 35 id. 389; opinion of Senator Seward in Garr v. Gomez, 9 Wend. 649; Mason v. Bridge, 14 Me. 468; Oakes v. Moore, 24 id. 214; Rochester v. Whitehouse, 15 N. H. 468; Russell on Arbitration, (3d ed.) 43; Morse on Arbitration and Award, 40.

The persons here selected were not to make an award for the payment of money by one party to the other. No rent was then claimed to be due, and had they agreed upon the rent to be paid under the lease after May 1, 1884, no action would lie on the award itself. The action would have to be brought on the lease, and the amount fixed upon by the persons chosen, as rent to be paid under the lease, would, in the absence of fraud, afford conclusive evidence of the extent of the lessees’ liability thereunder. It is also true that these referees had no power, under their appointment, to give a binding construction of the lease, as, whether the rent for the last four years was payable monthly, monthly in advance, annually, or at the end of the term. (McAvoy v. Long, 13 Ill. 147.) The extent of their authority, under.the provision in the lease, was simply to agree upon what would he a fair and reasonable rent per month for the unexpired term.

But whether the lease provided for a submission to arbitrators, or whether their finding is technically an award or not, is immaterial, as it makes no difference whether its binding effect grows out of their contract that the rent shall he fixed by the united judgment of the three, or from treating the finding as in the nature of a judgment. In either event, it is equally binding and conclusive.

This court has frequently held, that when parties have provided in their contract, in advance, that the quantity of work done, etc., shall be determined by an engineer or architect,.his estimate is conclusive upon them, except for fraud or mistake. Canal Trustees v. Lynch, 5 Gilm. 526; McAvoy v. Long, 13 Ill. 147; Mills v. Weeks, 21 id. 561; McAuley v. Carter, 22 id. 53; Parmelee v. Hambleton, 24 id. 608; Wallace v. Holmes, 36 id. 156; Korf v. Lull, 70 id. 420; Snell v. Brown, 71 id. 133; Coey v. Lehman, 79 id. 173; Taylor v. Renn, 79 id. 181; Downey v. O'Donnell, 86 id. 49; Finney v. Condon, 86 id. 78; Downey v. O'Donnell, 92 id. 559; Vermont Street M. E. Church v. Brose, 104 id. 206.

• At common law, all the executors were required to join in the execution of a power of sale, when it was not coupled with an estate, and it would not survive in case of the death of one. (Wardwell v. McDowell, 31 Ill. 364; Clinefelter v. Ayers, 16 id. 329.) In the first of these cases this court said: “At the common law, it is not doubted that a naked power, such as this has been decided to be, not coupled with any interest in the thing or estate, could only be exercised by the joint action of the donees of the power. The power does not survive in case of the death of one of the donees. (Sugden on Powers, 129.) So, in the execution of a will, where one named with others, as executor, refused to accept and qualify, the others could not execute the will. ” In Sinclair v. Jackson, 8 Cow. 553, the court say: “It is a settled rule, that when a trust or authority is delegated for mere private purposes, the concurrence of all who are intrusted with the power is necessary to its execution. Green v. Miller, 6 Johns. 39; Franklin v. Osgood, 14 id. 560; Sugden on Powers, 162, 263.” So, under a submission of matters in dispute to arbitrators, their award must be unanimous, unless otherwise agreed. Towne v. Jaquith, 6 Mass. 46; Maynard v. Frederick, 7 Cush. 252; Bannister v. Read, 1 Gilm. 92.

It follows, that the finding of the rent by only two of the persons selected, is not binding on the defendants. They never agreed to abide by such a-finding. As the first count sought to recover the rent as fixed by only two of the referees, it was clearly bad, and the demurrer was therefore properly sustained thereto.

The demurrer to the second and third counts presents an entirely different question.

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Bluebook (online)
11 N.E. 161, 120 Ill. 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stose-v-heissler-ill-1887.