Donaldson v. Buhlman

134 Wis. 117 | Wis. | 1908

Lead Opinion

The following opinion was filed November 5, 1907:

WmsLow, J.

The judgment entered is manifestly right. A common-law award of arbitrators is not to be set aside for mere errors of judgment upon questions of fact or law submitted, but it is subject to impeachment for fraud or misconduct amounting to fraud, or upon clear evidence of mistake when such mistake is not simply a wrong conclusion upon the facts or law submitted, but au unconscious failure to know or apprehend some material fact or right in the light of which their judgment should be exercised. Consolidated W. P. Co. v. Nash, 109 Wis. 490, 85 N. W. 485, and cases cited. Passing all questions of fraud or misconduct, it is unquestionable that the arbitrators committed such a mistake here. The question whether the plaintiffs’ rights to cut saw logs on the island had terminated or should be terminated at once was not submitted to them. The agreement of arbitration very clearly indicates that both parties understood that the plaintiffs were still entitled to some reasonable time within which to exercise their right of removal of saw logs and that they simply desired the arbitrators to set the limits of such time. The arbitrators entirely mistook their duty. They conceived that they had power to cut off entirely the plaintiffs’ rights to cut timber and proceeded to do so. Acquitting them of all intentional fraud or bad faith, this was a total misconception of the question submitted to them, and hence a mistake within the definition, above given, which calls for annulment of their award.

By the Court. — Judgment affirmed.

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Rehearing

The following opinion was filed January 8, 1908:

Wisrsnow, C. J.

The appellant moves for a rehearing in this case on the ground that four independent questions were submitted to arbitration, and that a mere failure of the arbitrators to properly understand their duties as to one question should not invalidate their awards as to the other questions. It is fair to say that the contention that the award was severable was not made in the original brief, and the question as to the length of time to be allowed to the respondents to remove saw logs was naturally regarded as the most important question in the case; and hence the question whether the award on minor subjects might or should be allowed to stand was not considered nor did it suggest itself to our minds.

It is undoubtedly true that, where a number of questions severable in their nature are submitted to arbitration, the fact that the award upon one question is bad will not necessarily result in the setting aside of the award upon the other questions unless the same vice affects them all, or unless the void part is a consideration for the other parts, or so affects the other parts that it appears that they are naturally dependent upon each other. Russell, Arb. & Award (8th ed.) 201; 2 Am. & Eng. Ency. of Law (2d ed.) 741 et seq.; Darling v. Darling, 16 Wis. 644.

In the present case, however, the court below found that both the action of the arbitrators in practically cutting off the appellant’s right to remove any timber and their action in allowing $75 damages were grossly unfair and unjust, and showed great prejudice and an utter lack of appreciation of their duties, and, further, that the entire award was made in bad faith. We are unable to. say that these conclusions were not justified by the evidence, and hence the same vice affects the award on all the questions submitted. As we viewed the case upon the first hearing, we did not deem it necessary to consider the question of bad faith, inasmuch as it seemed that the failure of the arbitrators to know and comprehend their duty as to the main question was sufficient to affirm the entire judgment, and so the ease was decided on the assumption that there might have been no bad faith, but it was not intended to decide that question. Now that it seems necessary to decide it, we have no hesitation in saying that the findings of the trial court cannot be set aside.

By the Court. — Motion overruled, without costs.