( Originally Published 1918 )
The Law Favors the peaceful settlement of controversies, and in many of the states there are statutes providing for the submission of disputed matters to the decision of one or more persons, called arbitrators. Their decisions are called awards.
Arbitration Is of Two Kinds.One is by agreement between disputants as individuals to submit their differences to one or more disinterested persons whose decision or award may or may not decide. The other is to conform with the state law that provides for procedure in arbitrations. This latter is called statutory arbitration. The principal advantage of statutory arbitration lies in its being a part of the court procedure, so that its award may be enforced, like any other court decision.
The Statutes Generally Provide that if the par-ties to any suit in a court of record desire to submit the matter involved to arbitrators, an order may be entered directing such submission to three impartial and competent persons, to be named in such order such arbitrators to be agreed upon and named by the parties, and if they fail to agree, each shall name one, and the court the third.
The Arbitrators Should Be Sworn
In submitting any matter to be arbitrated, care should be taken to include all the details clearly and in full. The agreement to arbitrate should provide for the expenses of the arbitration; and should require the award be made in a, writing, signed by the arbitrators and by them acknowledged before a notary public, so that it may be filed in court the same way a judgment is filed.
How Arbitration Is Conducted.The arbitrators so appointed are sworn, and proceed to hear and determine the matter, and draw up an award. The proceedings are much like proceedings in court or before a master in chancery in most states. A copy of the award is delivered to each party, and if either party fails to comply there-with, the other within a year may file said award in court, and obtain a judgment.
Matters Not in Suit.All persons having a requisite legal capacity may, by an instrument in writing, signed and sealed by them, submit to one or more arbitrators any controversy existing between them, and may, in such submission, agree that a judgment of any court of record, competent to have jurisdiction of the subject matter named in such instrument, shall be rendered upon the award made pursuant to said submission.
Railway Arbitration.The act of Congress passed July 15, 1913, providing for "mediation, conciliation, and arbitration in controveries between railroads and their employees," has been set aside for the duration of the war by the acts through which the railways and telegraph lines came under government control. (See Federal Control Laws.)
Reasonable Notice.All arbitrators and all parties should have reasonable notice of the time and place of the hearing,
The Proceedings at the hearing, and the award itself, should perfectly agree with the terms of agreement to submit.
The Award should be a clear, distinct and final determination of each and all the matters of controversy contained in the agreement, and should embrace nothing more. If it be a rule of court it should be sealed up, otherwise a copy should be given to each party.
The award must be signed by the arbitrators, or in some states a majority of them.
Submission May Be Recalled before the award of the arbitrator or arbitrators is made, or in New York before the allegation and proof of the par-ties have been closed and the matter finally submitted to the arbitrators.
Form of Agreement to Refer to Arbitrators
Know All Men by These Presents, That we, the undersigned, hereby mutually agree to submit all the matters in difference between us, of every kind, name, and nature, to the determination and award of Chas. Barker, Wm. Becker, and Robert Rehling, of Logansport, Cass County, Indiana, as arbitrators,
That said arbitrators, or any two of them, shall hear and determine the matters in dispute between us, and award the payment of all the costs and expenses incurred in such arbitration. That the said arbitrators shall make their award in writing on or before the -- day of , A. D. r9-. Done at Logansport, Indiana, , A. D. 19.
R. L. RAY, Witnesses.
ROLAND R. Cony. J. L. HOLMES,
Form of Notice to Arbitrators
GENTLEMEN : YOU have been chosen arbitrators on behalf of the undersigned, to arbitrate and award between them, in divers matters and things set forth in their submission, which will be produced for your inspection when you meet at , in , on the day of , at o'clock M., to hear the allegations and proofs.
HENRY GASSER, ROLAND R. CODY.
Form of Arbitration Bond
Know All Men by These Presents, That Henry Gasser and Roland R. Cody have this day of , A. D. 19, submitted their matters in controversy concerning the boundary and division lines of a certain tract of land [describe it] to Chas. Barker, Wm. Becker, and Robert Rehling, to arbitrate, award, order, judge, and determine of and concerning the same.
That we, the undersigned, bind ourselves in the sum of dollars that said Henry Gasser and Roland R. Cody shall submit to the decision and award of said arbitrators, provided said award be made in writing on or before the day of , A. D. 19--.
CHAS. R. WILLIAMS.
Form of Award
Know All Men by These Presents, That we, the under-signed, arbitrators of all the matters of difference, of every name, kind, and nature, between Henry Gasser and Roland R. Cody, by virtue of their agreement of submission of , 19-, do award, order, judge and determine of and concerning the same as follows: That [then state the award in full].
In witness whereof, we have, in each other's presence, hereunto set our hands this day of ,