delivered the opinion of the court.
W. Fred Skaggs,, brought suit against the Scottish Union & Nаtional Insurance Company on a policy issued March 3, 1913, on household furniture and effects, the policy covering a period of three years from its date. In January, 1915, a fire burned the house occupied by the plaintiff, and a portion of the furniture was destroyеd or damaged. The plaintiff sued for four hundred and seventy-five dollars and fifty cents, suit being based upon the policy, which was attached to the declaration. The defendant plеaded on arbitration and award, in which plea it was alleged that, after the loss-plaintiff and defendant submitted the matter to an arbitration, at the request and instance of the plaintiff, and that the arbitrators awarded plaintiff one hundred and sixty dollars and seventy-five cеnts; that this amount was tendered by the insurance company to the plaintiff, which plaintiff declined. The plea also set forth that the contract of insurance provided for аn arbitration in the case of disagreement between the plaintiff and defendant as tо the value of the property damaged, or destroyed, in case of fire, and madе a copy of the agreement for submission to arbitration, and the award exhibits to the рlea, and alleged that it was not liable beyond the one hundred and sixty dollars and seventy-fivе cents awarded. To this plea the plaintiff demurred on two grounds: First, that the plea shows оn its face that the provisions of the said insurance policy referred to in the spеcial plea as to total loss to be invalid and void, and therefore any arbitration based thereon is void; second, that the special plea and appraisement show on their face that the entire subject-matter purported to have beеn submitted to the arbitrators was not considered by the arbitrators, and no award was made as to damage, but that the award was only made as to loss.
“It is expressly understood that this agreement and appraisément is for the purpose of ascertaining and fixing the amount of sound value аnd loss and damage only, to the property hereinafter described, and shall not detеrmine, waive or invalidate any other right or rights of either party to this agreement.” has the еffect of invalidating the award as a binding obligation. The furniture insured was not described in particular items, but was described generally as “household goods, furniture, kitchen furniture, utensils, bed, bedding, linens, carpets,” etc., covering in extenso general classes of household property. The рolicy was fon one thousand dollars, and the loss and damage claimed only amounted, according to plaintiff’s claim, to four hundred and seventy-five dollars. There was not, therеfore, a total loss, and the valued policy law did noffaffect this arbitration.
It is not necessary to decide whether, in case of total loss, the clause to submit to arbitration would be binding. The arbitration, according to letters introduced in evidence, was brought abоut at the instance of the plaintiff, and nothing appears upon the face of thе submission and findings, made an exhibit to the plea, to show that the arbitration was avoided for any of the matters named in section 107 of the Code, being a part of the chapter оn “Arbitration and Award.”
It is the policy of this state to, permit parties to arbitrate their differеnces and to give effect to a valid submission and award in such cases. The matter of аrbitration and award is covered by chapter 6, Code of 1906; and the public policy of the state in regard
“Hoiv to Construe This Statute. — This chapter shall not be construed to take awаy from the courts of equity their power over awards, nor to make invalid any award good at common law; and it shall be liberally construed for the encouragement ,of the settlement of disputes and the prevention of litigation.”
"We think it was error for the court below to sustain the demurrer to the plea of the defendant. The case will be reversed and remanded, with leave to the plaintiff to plead further, and, if he desires, to amend his original «declaration to conform to this opinion. •
Reversed and remanded.