Source: https://supreme.justia.com/cases/federal/us/69/123/
Timestamp: 2019-04-20 11:01:46+00:00

Document:
1. A declaration in covenant by a patentee, setting out a sealed contract by defendant to pay him a certain tariff in consideration of an exclusive right to use the patent within a certain district is good.
2. The practice of referring pending actions under a rule of court to arbitrators appointed by the court with the consent of both parties is a mode of prosecuting a suit to judgment as well established and as fully warranted as a trial by jury.
3. A reference to hear and determine all the issues in a case does not require the referee to report his finding in all. It is answered by his hearing and determining all and reporting the result.
4. A judgment in the circuit court, entered by the clerk without objection upon the report of the referee and pursuant to order of court and the agreement of parties, is valid and can be enforced.
"referee to hear and determine the same and all issues therein, with the same powers as the court, and that an order be entered making such reference, and that the report of said referee have the same force and effect as a judgment of said court."
"Ordered that the cause be referred to H. Cramm, Esq., to hear and determine all the issues herein, with the fullest powers ordinarily given to referees, and that on filing the report of the said referee with the clerk of the court, judgment be entered in conformity therewith the same as if the cause had been tried before the court."
the finding, simply and generally, that there was due to plaintiff, John Fowler, from the defendants, John and George Heckers, the sum of $9,500, besides costs, all which he "reported" to the court. On this, the attorneys of Fowler drew up the form of a judgment, and without the presence or action of the court except the order of reference already alluded to, filed it with the clerk, who thereon entered judgment as a judgment of the court for the amount reported, with costs. The defendant took this writ of error.
"the report of the referees upon the whole issue shall stand as the decision of the court, and judgment may be entered thereon in the same manner as if the action had been tried by the court. "
This is a writ of error to the Circuit Court of the United States for the Southern District of New York.
1. That the declaration and the matters therein contained are not sufficient in law to enable the plaintiff to maintain the action.
2. That the circuit court erred in passing the order that the action should be referred, and that the matters in controversy should be heard and determined by a referee.
3. That the action of the referee was erroneous because he did not determine all or any of the issues involved in the pleadings.
4. That the judgment set forth in the transcript is invalid, and not such a one as can be enforced in the circuit court of the United States.
writing and under seal, and the action was covenant broken to recover damages for the neglect and refusal to account and pay the tariff according to the terms of the contract. Pending the suit, the defendants appeared and pleaded to the merits. They made no objection to the declaration, and if they had it must have been overruled, as it is in all aspects sufficient and well drawn.
"to hear and determine the same and all the issues therein, with the same powers as the court, and that an order be entered making such reference, and that the report of the referee have the same force and effect as a judgment of the court."
Following that agreement is the order of the court allowing the reference, which is the subject of complaint. Recital of the record is that on reading and filing the agreement, "the court ordered that the cause be referred" to the referee therein named, to hear and determine all issues therein with the fullest powers ordinarily given to referees, and that on filing the report of the said referee with the clerk of the court, judgment be entered in conformity therewith the same as if said cause had been heard before the court, and the attorneys of the parties annexed their consent in writing to the order.
the circuit court of the United States is invalid because such courts have no power to authorize such a proceeding. Such is the substance of the several propositions submitted by the defendants on this branch of the case. They admit that the state courts have such powers, but insist that the power is derived from statute, and that the circuit courts cannot exercise it, because there is no act of Congress which confers any such authority.
by law as a trial by jury, and in the judgment of this Court there can be no doubt of the correctness of that proposition.
Doubts were nevertheless entertained whether a bill of exceptions would lie to the ruling of the circuit court in overruling the objections filed by the losing party to the acceptance of the report or award of a referee appointed under a rule of court: York & Cumberland R. Co. v. Myers. [Footnote 4] Opinion of the Court in that case shows that the action, at the time of the reference, was pending in the Circuit Court of the United States for the District of Maine. Myers brought the suit, and the parties, before trial, agreed to refer the action to three persons to be appointed by the court. Presiding justice named three persons as referees, and the rule issued by the clerk provided that their report, or the report of a majority of them, "was to be made to the court as soon as may be, and that judgment thereon was to be final, and execution to issue accordingly." Subsequently one of the persons so appointed was, with the leave of the court, authorized by the parties to sit alone, and he made a report awarding damages to the plaintiff.
"Upon principle, we can see no objection to the introduction of the same practice into the courts of the United States under the limitations we have indicated."
a mistaken view of the duty of the referee as prescribed in the rule of reference. He was not required either by the agreement of the parties or by the order of the court to report specially what his finding was upon the several issues presented in the pleadings. His duty was to determine all the issues and to report the result of his finding. Referee reported that, having heard and examined the matters in controversy in the cause and having examined on oath the several witnesses produced, there was due to the plaintiff the sum of nine thousand and five hundred dollars, besides the costs of suit. Presumption is that he did determine all the issues, and inasmuch as there was no evidence to the contrary, the conclusion must be to the same effect.
1 Stat. at Large 78.
46 U. S. 5 How. 89.
59 U. S. 18 How. 246.
Strother v. Hutchinson, 4 Bingham's New Cases 83; Ford v. Potts, 1 Halsted 388; Nesbitt v. Dallam, 7 Gill & Johnson 494.
11 U. S. 7 Cranch 596.
Carnochan v. Christie, 11 Wheat. 446; Luts v. Linthicum, 8 Pet. 176; Butler v. Mayor of N.Y., 7 Hill 329; Ward v. American Bank, 7 Metcalf 486; Water Power Co. v. Gray, 6 id. 174.
Yates v. Russell, 17 Johnson 468; Hall v. Mister, Salkeld 84; Bank of Monroe v. Wadner, 11 Paige 533; Green v. Palshen, 13 Wendell 295; Caldwell on Arbitration 359; Feeler v. Heath, 11 Wendell 482; Graves v. Fisher, 5 Me. 70; Miller v. Miller, 2 Pickering 570; Com. v. Pejepsent Proprietors, 7 Mass. 417, 420.
2 Tidd's Practice, p. 903; Archbold's Practice by Chitty 521.
Brown v. Cochran, 1 N.H. 200.
Hughes v. Bywater, 4 Hill 551.
Bank of Monroe v. Widner, 11 Paige 533.

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