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THE
MUSIC TRADE
REVIEW
Settling Business Disputes By Arbitration
Some Interesting Comments on the Plan Formulated by the New York Chamber of Commerce
Which Will Interest the Music Trade.
S
EVERAL months ago I wrote an artiule, as one of this series,
on "The Settlement of Business Disputes by Arbitration."
In several ways I was made to know that the subject had aroused
much interest, as indeed it was inevitable that it should, for any
plan for adjusting the controversies of business life without the
expense and delay of court proceedings is sure to awaken a re-
sponse in every business man's breast.
The. New York Chamber of Commerce has just formulated a
complete plan of employing arbitration as a means of settling com-
mercial disputes that would otherwise have to go into court for
settlement, and 1 have been at some pains to obtain its details for
presentation here in a further article on the same subject.
Arising in the experience of every business man, however
large or small his scope of operations may be, are questions of
law which must be settled. If he is like the average business man,
he shrinks from the very thought of lawsuits, dreading the expense,
the long wait, and the frequent need of being called to court again
and again, only to hear that his case was not reached, or was
reached and postponed. These conditions are particularly aggra-
vating in city courts, which are almost always congested. In
Philadelphia, for example, it frequently takes two and three years
for an ordinary commercial case to be heard. In the meantime
witnesses have died or moved away, the details of the controversy
may have been forgotten, and all flavor has flown from the dispute.
As a result of their abiding dread of litigation, business men
will often submit to injustice rather than take their chances in
the courts. One of my own clients only last week, who had as
good a claim for $500 as I have ever handled, accepted a beggarly
offer of $50 rather than wait the two years or more which he
would have to wait for his case to be heard in court.
All this is at the bottom of the eagerness with which the busi-
ness world is turning toward the settlement of ordinary business
disputes by arbitration. Arbitrators as a rule are not lawyers—
they are business men of sound judgment who decide cases ac-
cording to what they believe to be right and just. A case is heard
speedily and completely settled within a short time.
The New York Chamber of Commerce has provided for three
classes of arbitrators. First a list of names is appointed from
among its members, and other members wishing to employ arbitra-
tion may select one man from this list. Or they may select two
wherever they like, each party selecting one, and the two may select
a third from the list of official arbitrators. The third plan is to
have the case arbitrated by a Committee on Arbitration, which the
Chamber selects also from among its members. A quorum of this
committee can act.
The Chamber of Commerce provides a room for the hearings
and all necessary forms and papers free of charge. Each party
furnishes his own witnesses, paying their fees himself, and a
stenographer attends to make the usual official record of the pro-
ceedings.
I have obtained a number of the forms used to submit cases to
arbitration and here present one as a suggestion to any other mer-
cantile organization which may care to use the plan. In the form
below the parties have chosen to submit the case to a single arbi-
trator, chosen from the official list. The form would be altered if
either of the two other plans of selecting arbitrators was used:
"A controversy, dispute or matter of difference between the
undersigned having arisen and relating to a subject matter the
nature of which, briefly stated, is as follows: (Here follows a
statement of the case.)
"We do hereby voluntarily submit the same and all matters
concerning the same to
as Arbitrator,
selected by us from the 'List of Official Arbitrators,' compiled and
established by the Committee on Arbitration of the Chamber of
Commerce of the State of New York, for hearing and decision
pursuant to the By-Laws of the Chamber of Commerce of the
State of New York, and the Rules and Regulations adopted by
the Committee on Arbitration of the Chamber of Commerce, and
pursuant to Chapter 17, Title VIII., of the Code of Civil Procedure
of the State of New York, and we agree to stand to, abide by and
perform the decision, award, orders and judgment that may therein
and thereupon be made under, pursuant and by virtue of this
submission.
"And we do further agree that a judgment of the Supreme
Court of the State of New York may be entered in any County in
the State of New York thereon.
"We do also in all respects waive any right to withdraw from
or revoke this submission after the arbitrator or arbitrators accept
their appointment hereunder, hereby expressly and specifically
waiving the provisions of Section 2,383 of the Code of Civil Pro-
cedure."
It will be observed that the parties pledge themselves to abide
by the decision, whatever it may be; in other words, not to appeal
it. There is also a provision that judgment can be entered in court
on the decision. However, the parties are not helpless against an
unjust verdict, for they can have it set aside on any of the follow-
ing grounds:
(a) Corruption. Under this heading are included all forms
of bribery, whether the consideration be in money or in any-other
form.
(b) Fraud. This would include any kind of fraud or decep-
tion going to the merits of the case before the arbitrators. Manu-
factured evidence, deliberate perjury would come under this head.
(r) Other undue means. Under this head is included undue
influence with the arbitrators, threats, secretion of evidence;- con-
cealing of books or papers.
•]; r
(d) Evident partiality on the part of the arbitrators, ofieither
of them.
(e) Where the arbitrators have exceeded their pozvers. . This
includes all cases where the arbitrators went beyond the scope of
the case submitted or decided the case upon evidence not submitted
to them or for consideration not before them officially. Such
would be the case where after a case has been closed one of" the
arbitrators produces and exhibits to the others, in the absence of
the parties, written testimony signed by witnesses relating to the
controversy, which would possibly have affected the award as made.
(f) Where the arbitrators refused to postpone the hearing
upon sufficient cause shown.
(g) Where the arbitrators refused to hear evidence that zvas
pertinent and material to the controversy.
\
(h) Where the arbitrators liavc been guilty of any kind of mis-
behavior by which the rights of any party has been prejudiced.
(i) Where the arbitrators imperfectly executed their powers
and failed to make "a mutual, final and definite award" upon the
subject matter submitted.
Of course, arbitrators usually have to be paid, but their fees
and the general expenses of submitting to arbitration are not as a
rule as large as the cost of bringing a case in court, but even if
they were as large or larger, the cost would be warranted because
it would get quick results.
With the possible exception of certain rural districts where
cases are few and can therefore be heard soon after being brought,
there is scarcely a mercantile organization but could adopt this New
York plan for its own territory with tremendous benefit. Given
fair, honest and intelligent arbitrators, the plan is ideal.—Copyright,
February, 1912, by Elton J. Buckley.