Document: 350 U.S. 198 76 S.Ct. 273 100 L.Ed. 199 Norman C. BERNHARDT, Petitioner,v.POLYGRAPHIC COMPANY OF AMERICA, Inc. No. 49. Argued Dec. 5, 1955. Decided Jan. 16, 1956. Messrs. Manfred W. Ehrich, Jr., New York City, Eugene V. Clark, Bennington, Vt., for petitioner. Joseph A. McNamara, Guy M. Page, Burlington, respondent. Mr. Justice DOUGLAS delivered the opinion of Court. 1 This suit, removed from a Vermont court to District Court on grounds diversity citizenship, was brought damages discharge petitioner under an employment contract. At time contract made resident York. Respondent is corporation. The in Petitioner later became Vermont, where he perform his duties contract, and asserts rights there. 2 contains provision that case any dispute parties will submit matter arbitration law by American Arbitration Association, whose determination 'shall be final absolute.' After had been Court, respondent moved stay proceedings so controversy could go motion alleged governs question whether binding. 3 ruled Erie R. Co. v. Tompkins, 304 64, 58 817, 82 1188, governed makes revocable agreement arbitrate at before award actually made. therefore denied stay, 122 F.Supp. 733. Appeals reversed, Cir., 218 F.2d 948. here petition certiorari which we granted, 349 943, 75 873, because doubtful application supra. 4 A United States Act, 43 Stat. 883, as amended, 61 669, 9 U.S.C. §§ 1—3, U.S.C.A. lies threshold case. Section Act 'valid, irrevocable, enforceable' provisions certain classes contracts;1 § provides actions federal courts issues referable those contracts.2 only two types contracts: relating maritime transaction involving commerce. No involved here. Nor does this evidence 'a commerce' within meaning Act. There no showing while performing working 'in' commerce, producing goods or engaging activity affected our decisions.3 5 went hold event stands its own footing. It concluded enforceable agreements transactions covers all even though they do not involve We disagree with reading Sections 1, 2, are integral parts whole. To sure, repeat words 'maritime transaction' 'transaction commerce', used 2. But define field Congress legislating. Since part regulatory scheme, can assume 'agreement writing' referred kind have regulation. intimation suggestion Committee Reports cover narrower than 3. On contrary, S.Rep. 536, 68th Cong., 1st Sess., p. states defines contracts 'the bill applicable.' And H.R. Rep. 96, one foundation new regulating measure Federal control over interstate commerce admiralty.' If respondent's contention correct, constitutional might presented. Tompkins indicated authority make applicable controversies citizenship cases. Shanferoke Coal & Supply Corp. Delaware Westchester Service Corp., 293 449, 55 313, 79 583, applied decision antedated Tompkins; did consider larger presented here—that is, touched substantive rights, held were local law, mere form procedure power prescribe. Our view, developed, 3, read, would invade field. read narrowly avoid issue. Trade Commission Tobacco Co., 264 298, 307, 44 336, 337, 68 696. conclude provided reaches covered 6 remains whether, apart providing 7 Appeals, disagreeing effect followed earlier Murray Oil Products Mitsui 146 381, 383, that, 'Arbitration merely trial, adopted action itself, place trial common law: it like reference master, 'advisory trial' Rules Civil Procedure * *.' 8 conclusion. deal right recover owes existence States, States. enforces state-created rules has acquired Government identical state courts. Yet, spite difference procedure, enforcing said Guaranty Trust York, 326 99, 108, 65 1464, 1469, 89 2079, substance 'only another State.' may 'substantially affect enforcement given Id., 109, 1470. allows disallow it, outcome litigation depend court-house suit brought. For remedy arbitration, whatever merits shortcomings, substantially affects cause created State. nature tribunal suits tried important parcel behind action. change panel radical ultimate result. carries jury guaranteed both Seventh Amendment Ch. Art. 12th, Constitution. Arbitrators benefit judicial instruction law; need give their reasons results; record complete trial; review more limited trial—all discussed Wilko Swan, 346 427, 435—438, 74 182, 186, 188, 98 168.4 'The nub policy underlies same accident non-resident litigant instead State block away, should lead different result.' judgment resultant discrimination if suing remitted be. found court, binding revoked He gave Mead's Adm'x Owen, 83 Vt. 132, 135, 1058, Sartwell Sowles, 72 270, 277, 48 11, decided Supreme Vermont. In Owen speaking arbitrate, '* either party revoke submission publication award.' page 1059. That 1910. agreed oral argument there courts, fracture announced cases appeared subsequent rulings dicta, legislative movement way result judge making findings bar, special weight statement what is. See MacGregor Mutual Life Assur. 315 280, 62 607, 86 846; Township Hillsborough, Somerset County, Jersey Cromwell, 620, 630, 66 445, 451, 90 358; Steele General Mills, 329 433, 439, 67 442, 91 402. agree him compelled Were doubt deserving further canvass, course remand pass law. But, indicated, appears confusion decisions, developing line authorities casts shadow established ones, doubts ambiguities opinions judges question, development promises undermine rule. see reason, therefore, 10 argues since contracted conflict laws tendered, also Klaxon Stentor Electric Mfg. 313 487, 1020, 85 1477. clear some us question. mention explicitly open consideration 11 reversed remanded conformity opinion. 12 Reversed remanded. 13 FRANKFURTER, concurring. 14 my view 15 Bennington County petitioner, citizen against respondent, corporation subject between sole basis jurisdiction citizenship. Not but following it: 16 'Fourteenth: hereto hereby stipulate intention covenant performance hereunder construed accordance pursuant proceeding other arising out of, connection reason agreement, shall govern exclusion forum, without regard instituted.' 17 invoked whereby disputes submitted regulations Association pertinent Practice 1468 et seq. pending arbitration. 18 because, cases, recognizing force such damages, allow specific rested rendered accounting evidently Vermonters wholly transaction, i.e., about personal property farm. 1058.1 1910 and, turn, relied Aspinwall Tousey, Tyler, 328, 1803, authorizing revocation award. 19 unnecessary today, concern 'substantive' which, case, controlling sitting fell 'procedure' governing source jurisdiction. So holding, accordingly, directed heed 20 explained why categories 'substance' are, relation doctrine less self-defining. They delusive. intrinsic content thought conveyed terms particular context becomes essential inquiry. mode approaching problem several applications decision. I Court's differences arbitral sufficiently outcome, contingencies individuals passing sense relevant Tompkins. ground taken decision, raise serious solely 'between Citizens States', U.S.Const. III, disregard sitting. 1925 obviously apply light interpretive materials, avoidance me compelling construction cases.2 Of implies specifically Furthermore, applicable, abstain scope jurisdictional 21 regarding us, decisive litigation. law? One difficulties, course, resulting always easy sometimes difficult ascertain essence difficulties ascertaining fraught mischief basic jurisdiction, namely, policies going heart rights. Judge Gibson's contemporary now determinative, that. defendant entitled cannot, Congress, foreclosed interpretation. 22 As long 'estimates' necessarily often rule law.3 Pomerantz 101 341. ought by-pass issue estimate Court's, contemporaneous confidently say, set Appeals. fact restated old denying equitable relief breach promise hardly conclusive attributing 1956 explicit sought, 1451, govern. Cf. Brown Perry, 104 66, 156 910, 77 A.L.R. 1294. Law times circumstances, through reforms.4 noted restricted Reports, otherwise written. Nashville, St. L.R. Browning, 310 362, 369, 60 968, 84 1254. last spoke peculiar indigenous attitude reflected nearly half century ago current traditional hostility ousting phrase ran, adverse comments Hough Asphalt Refining Trinidad Lake Petroleum D.C., 222 F. 1006, assumed compare shift reservation Brandeis' Red Cross Line Atlantic Fruit 274, 582.5 vigorous got 1920's expressive broadened outlook subject. wait legislation find outmoded. Only Term, although statute adjudication, significance body enactments elsewhere: 'A steady trend, presumably manifesting strong social policy, properly demands process.' National City Bank Republic China, 348 356, 360, 423, 427. 23 Surely happened general consideration, today require purposeful desire govern, accomplish deemed versed jurisprudence having among members lawyer, would, despite incidents habit adhere precedents leave changes legislature, gainsay policy. am suggesting Appeals' answer these questions be, still maintain deny right. 24 matters heretofore needless consider. 25 HARLAN, 26 concur except insofar undertakes affirm interpretation FRANKFURTER ordinarily left Courts purpose. 27 BURTON, dissenting. 28 Whether affirmed. 29 Assuming validity clause involved, prescribes permissible 'form trial.' 381. Accordingly, await completion proceedings, likewise. interpret requiring contrary. provides: written evidencing settle thereafter refusal whole thereof, writing existing refusal, valid, enforceable, save upon exist equity contract.' 'If pending, being satisfied until applicant default arbitration.' 'commerce' as: foreign nations, Territory Columbia, another, nation, Columbia nothing herein contained seamen, railroad employees, class workers engaged commerce.' here, reach included 'any workers' exceptions arbitrators misconstrued review. Hartbridge, 72; Benefit Health Accident Ass'n Cas. 142 390. Questions fault neglect arbitrators' consideration. James Richardson Sons E. Hedger Transportation 55. bound evidence. Burchell Marsh, How. 344, 96; Springs Cotton Mills Buster Boy Suit 275 App.Div. 196, 200, 88 N.Y.S.2d 295, affirmed 300 N.Y. 586, N.E.2d 877. draw knowledge Almond Consolidated Pecan Sales 144 448, 154 1205; Guldborg, 380; Absent parties, transcript unnecessary. O. Andersen Trading Brimberg, 119 Misc. 784, 197 N.Y.S. 289; Application Shapiro, 241, 97 644, modified Shapiro Gordon, 277 927, 451. Swearing witnesses required. disclose facts Shirley Silk Inc., 257 375, 377, 309, 311. cited 11. wherein applied. pre-Erie, attention toward peculiarly true prophecy 'of fact.' Holmes, Path Law, Collected Legal Papers, 173. obstinately past too living, illustrated instances: Capello's Administrator Aero Mayflower Transit 116 A.2d 913, overruling Ronan J. G. Turnbull 99 287—288, 131 788, 791—792 (proof automobile owned prima facie operator defendant's service); Bartlett Bonazzi, 192, 886, Fisher Brown, 387 (action deceit lie seller's fraudulent misrepresentations concerning financial position induced buyer extend credit); Pianfetti, 236, 84, Kittle, 471 (jury verdict guilty four counts indictment operated acquittal three counts); Perry Shumway, 73 191, 50 1069, Town Hartland Hackett, 57 92 (the issuing extent delinquent tax collector constitutes election remedies bars collector's bond); Burpee, 964, L.R.A. 145, Croteau, (in criminal well jury); Woodrow O'Conner, 776, Bagley Wiswall, Brayton, 23, Drake Collins, (an note void want consideration). Grenier Alta Crest Farms, 115 324, 884, deciding character employee Workmen's Compensation existed draws recorded jurisdictions justify departure contrary theory forth Kelley Hoosac Lumber 96 153, 118 520. Hough, 1915, stated: 'It never English-speaking probably originated (as Lord Campbell Scott Avery, H.L.Cas. 811)—'in contests ancient extension jurisdiction—all them opposed anything altogether deprive every jurisdiction.' unworthy genesis cannot imagined. (at latest) Kenyon, customary stand rather antiquity excellence 1007. 'I think decisions show beyond laid down ouster shown quoted clause) forum.' 1012. hand, 1924 observed Line: 'we occasion unwillingness full executory justified.' 125, 278.

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