Williamson v. North Pacific Lumber Co.

73 P. 7, 43 Or. 337, 1903 Ore. LEXIS 63
CourtOregon Supreme Court
DecidedJuly 13, 1903
StatusPublished

This text of 73 P. 7 (Williamson v. North Pacific Lumber 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
Williamson v. North Pacific Lumber Co., 73 P. 7, 43 Or. 337, 1903 Ore. LEXIS 63 (Or. 1903).

Opinion

Mr. Justice Wolverton

delivered the opinion.

This case having been here twice before, the statement of facts on the second appeal will suffice to indicate the issues now involved, except it is deemed essential that further notice should be taken of the nature of the separate defenses interposed to the causes of action set up in the complaint. Concisely stated, they are that defendant appointed the plaintiffs its representative and agent, upon the terms stated, to settle and adjust certain alleged disputes with the purchasers of the lumber in question, which appointment and trust was duly accepted; that plaintiffs, in violation of their said trust and agency, conspired and confederated with Williamson, Balfour & Co., of Valparaiso, Chile, to defraud defendant, and pretended to dispose of the excess of the Airlie cargo at forced sale as inferior lumber, and to submit the alleged dispute as to the upper assortment of lumber of the Ballochmyle to arbitration and award, and caused the pretended arbitrators to'decide and report that the buyers should be allowed a discount of thirty per cent from the agreed price, and that [339]*339in pursuance of said pretended and unauthorized arbitration and award they pretended to sell said upper assortment of the Ballochmyle, also at forced sale, as inferior lumber; tha't said pretended sales were secretly made, and without the knowledge of the defendant; that the alleged dispute, both as to the quality of the excess of the Airlie and the upper assortment of the Ballochmyle, was simulated only and fictitious, when none.such really existed; and that said pretended settlement, arbitration, and sale were and are fraudulent, unreasonable, and extortionate, and as to the defendant are of no binding validity or effect. This brings us to the numerous assignments of error, and we will consider them much in the order presented.

1. The court refused to instruct that “there is no evidence in the case that either plaintiffs or their Valparaiso house submitted the matters in dispute, or either of them, to arbitration, and there is no such question in the case.” This instruction was manifestly requested on the part of plaintiffs, in view of the separate defense interposed to its second cause of action. To be understood, it should be premised that at the first trial of the cause, in both the circuit and in this court, plaintiffs proceeded upon the theory that the agreement between the parties with reference to the settlement of the dispute and the subsequent action had in pursuance thereof was in effect a submission to arbitration and award, and should be so treated: Williamson v. North Pac. Lum. Co. 38 Or. 560 (63 Pac. 16, 64 Pac. 854). The further defense was therefore intended, among other things, to meet this theory and contention of plaintiffs, and to put defendant in a position to show, not only that the alleged dispute was simulated and fictitious, but that no arbitration was ever had or award made,, or, if there was, it was without the authority of defendant, and not binding upon it. By the decision on the second appeal it was definitely determined that the appointment [340]*340of the plaintiffs as agents to settle the alleged dispute did not constitute them, or the allied house at Valparaiso, Chile, arbitrators, whose award or adjustment was binding upon defendant until appropriately impeached or set aside: William,son v. North Pac. Lum. Co. 42 Or. 153 (70 Pac. 387). Now, as we understand from the record, the theory that the alleged settlement by the plaintiffs through their allied house at the port of discharge was tantamount to an arbitration and award was no longer insisted upon; but it was contended that the settlement by the agent was, in the absence of fraud, itself conclusive and binding upon defendant. Thus the arbitration theory dropped entirely out of the case, and with it all necessity or attempt on the part of defendant to combat it. Indeed, defendant had never relied upon arbitration as a defense, and never attempted to establish such a feature in the case. When called upon, defendant offered to show that no such arbitration or award was ever had or made with its consent or authority; but, when the plaintiffs ceased to insist upon the theory that the alleged settlement was in effect an award of arbitrators, all contention upon that point was at an end, and defendant could not and did not offer in evidence anything to combat it, and thus was the issue entirely eliminated from the case. No one insisted upon it, one way or the other, and the instruction asked could serve no good or practical purpose, and was therefore very properly refused.

The court refused to instruct, as requested* that defendant’s allegations of fraud with reference to the settlement of the dispute touching the upper assortment of the Ballochmyle were not supported by the evidence. This constitutes the second assignment of error. The evidence in regard to the subject was as full upon this trial as at the preceding one, and plaintiffs are therefore concluded by [341]*341the decision on the second appeal: Williamson v. North Pac. Lum. Co. 42 Or. 153 (70 Pac. 387).

The third assignment relates to the refusal of the court to give an instruction amply covered by the general charge, and the sixth assignment is of the same nature.

2. The fourth and fifth assignments may be examined together. They are founded upon the court’s refusal to instruct that if plaintiff’s Valparaiso house used reasonable care in selecting surveyors to examine the upper assortment of the Ballochmyle, and after examination the surveyors recommended that an allowance of thirty per cent be made to the buyers, and that if, relying upon such report, the Valparaiso house made the allowance in good faith, believing it to be to the best interest of the defendant, then that defendant is bound by the settlement. In other words, it is insisted that if the Valparaiso house used reasonable care and circumspection in the selection of sub-agents at Antofagasta to examine the cargo, and subsequently in good faith acted upon their advice and report, then defendant would be bound by the settlement thus effected, even though the subagents were guilty of fraud, and that neither the plaintiffs nor the Valparaiso house are responsible for the acts of the subagents. It is in evidence that, in settling with the buyers of the upper assortment of the Ballochmyle, the Valparaiso house, through their agent at Antofagasta, a port six hundred miles distant, appointed two British merchants, acquainted with the business, to survey the lumber and report to them what allowance, if any, should be made to the buyers; that these surveyors called to their assistance an expert, and after an extended examination reported to the Valparaiso house that the lumber was much inferior to the grade contracted for, and that an allowance of thirty per cent from the contract price should be made to them; that thereupon the Valparaiso house negotiated with the buyers, and they took [342]*342the lumber at the reduction suggested; and that all the parties concerned were reputable, competent, and honest.

As applied to these facts, we do not believe that the instructions asked were warranted. It appears that the Valparaiso house, through their agent at Antofagasta, employed the surveyors as instrumentalities, with the view of obtaining information relative to the condition and value of the lumber, deemed necessary, presumably, for their guidance in negotiating a settlement with the buyers.

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Related

Williamson v. North Pacific Lumber Co.
63 P. 16 (Oregon Supreme Court, 1900)
Williamson v. North Pacific Lumber Co.
70 P. 387 (Oregon Supreme Court, 1902)

Cite This Page — Counsel Stack

Bluebook (online)
73 P. 7, 43 Or. 337, 1903 Ore. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williamson-v-north-pacific-lumber-co-or-1903.