ARBITRATION, an adjudication by private persons, called arbitrators, ap< pointed to decide a matter or matters in controversy, either by written or oral submission, by agreement of the dispu tants. It differs from a reference which is made by the order of a court of law.
Legal Arbitration.—Infants and others not sui juris cannot submit controversies to arbitration. The matters that may be submitted to an arbitrator are all personal disputes and differences that might otherwise be made the subject of controversy in the courts of civil juris diction, except matters respecting a claim to an estate in real property, in fee or for life, which in New York cannot be submitted to arbitration; in some other States they may be. Thus breaches of contract generally, breaches of promise of marriage, trespass, assaults, charges of slander, differences respecting part nership transactions or the purchase price of a piece of personal property, all may be referred to arbitration. Ques tions relating to real property in the State of New York cannot be the sub ject of arbitration. Differences between landlord and tenant, where no claim of title is interposed, may be. Pure ques tions of law may also be referred to the decision of an arbitrator. Actions at law and suits in equity may also be set tled by arbitration; and this kind of reference may be made at any stage of the proceedings, sometimes even after the verdict, and probably, by analogy, after decree in equity. Questions relat ing to the future use and enjoyment of property, and future or anticipated differ ences between parties, may likewise be so submitted, but not in New York. In some of the States, however, some mat ters depending on points strictly tech nical are excluded from arbitration, in view of the fact that often arbitrators are not learned in the law. A matter clearly illegal cannot be made the sub ject of a valid sulimission. Partners and corporations may make submission to arbitration. The arbitrator ought to be a person who stands perfectly indifferent between the disputants; but there are no other particular qualifications for the office, and the choice by parties of the person who they agree shall decide be tween them is perfectly safe.
Mode of Procedure.—The proceedings before an arbitrator are regulated gen erally according to the forms observed in courts of law. The arbitrator on the day appointed hears the case and makes his award, which need not be in writing, for a verbal award is perfectly valid; but in practice it is usual for the arbi trator to make a written award. This award in its effect operates as a final and conclusive judgment respecting all the matter submitted, and binds the rights of the parties for all time. An award may be set aside on the ground of cor ruption and fraud in the arbitrator, and for any material irregularity or illegality appearing on the face of the proceedings, such as is beyond or not covered by the submission. But the tendency of the courts is to favor arbitration, and main tain awards, unless such serious grounds as are above referred to, can be substan tiated. Where there are two arbitrators the submission often provides that in the case of their differing in opinion the matter referred shall be decided by a third person, called an umpire, who is generally appointed under a power to that effect by the arbitrators themselves. But they cannot make such appointment unless specially authorized so to do by the terms of the submission. This um pire rehears the case, and for this pur pose is invested with the same powers as those possessed by the arbitrators, and is bound by the same rules.
Court of Arbitration.—By chapter 278, Laws of 1874, the legislature of New York established the "Court of Arbitra tion of the Chamber of Commerce of the State of New York," defined its jurisdic tion, and regulated its proceedings. The London Corporation and the Low don Chamber of Commerce founded ly in 1892 a Chamber of Arbitration, of Tribunal of Comnierce, for settling trade and commercial difficulties; and the great coal dispute and strike of 1893 led to a conference which secured a peaceful con clusion for the time, and the foundation of a permanent "Board of Reconciliation," consisting of representatives both of owners and of the miners. Diplomatic conferences, which often obviate war, belong to a different category.