ARBITRATION is a private mode of deciding dif ferences, by a reference of disputed claims to the deci sion of one or more persons named as arbiters by the parties.
This method of terminating disputes certainly de serves encouragement, on account of its tendency to diminish the expense to parties, and to allay that heat and animosity, which is too often produced and fostered by the proceedings in a public court of justice. The decision or award of the arbiters proceeds upon a deed of submission, which is a contract entered into by the parties, whereby they ascertain the matters in contro versy, define the powers of the arbiters, and mutually bind themselves to abide by the award.
Experience having shown the great advantage of these peaceable and private tribunals, especially in settling matters of account, and other mercantile trans actions, which it is extremely difficult to adjust on a trial at law ; the English legislature established the use of them by stat. 9 Sr. 13 W. III., c. 15., which enacts, that all merchants and others, who desire to end any controversy, (for which there is no other remedy but by personal action or suit in equity,) may agree that their submission of the suit, or arbitration or umpirage, shall be made a rule of any of the king's courts of record; and alter such rule made, the parties disobeying the award shall be liable to be punished as for a contempt of the court, unless such award shall be set aside for cor ruption or other misbehaviour in the arbitrators or um pire, proved on oath to the court within one term after the award is made. And in consequence of this statute,
it is now become a considerable part of the business of the superior courts, to set aside such awards, when par tially or illegally made ; or to enforce their execution, when legal, by the same process of contempt, as is awarded for disobedience to such rules and orders as are issued by the courts themselves.
When a submission is made to two or more persons as arbiters, it is usual to add, that another person be called in as umpire, (imperator or inzpar ; in Scotland, oversman,) in case of disagreement; to whose sole judgment the dispute is then referred.
The decisions of arbiters have been at all times so favourably viewed, that among most nations they are not reducible on the ground of injustice or iniquity, but only on the ground of corruption. By the old practice of Scot land, indeed, decreets-arbitral were reducible on the head of iniquity in the judge, or of enormous lesion of the party ; but by art. reg. 1695, c. 25., it was declared, that no deer et-arbitral, proceeding on written submis sion, should for the future be reducible on any ground but those of corruption, bribery or falsehood Blackst. Comment. b. ii,f. c. 1. Ersk. Inst. b. iv. t. 3. § 35.