Majority
Headnote
A clause in a building contract that “should any dispute arise” respecting the terms of the contract or value of extra work, etc., the same should be settled by arbitrators to be selected by the owner and contractor, is not a bar to an action for extra work, where neither party made any effort to submit the controversy to arbitration.This is an action to foreclose a mechanic’s lien, and was tried before a referee, who has found in favor of plaintiffs, both for the balance due on the original contract and 'for the amount of $702.38, claimed on account of alleged extra vvork. No objections have been made
“ Should any dispute arise respecting the true construction or meaning of the drawings or specifications, the same shall be decided by and his decision shall be final and conclusive; but should any dispute arise respecting the true value of the extra work, or of the works omitted, the same shall be valued by two competent persons—one employed by the owner and the other by the contractors—and those two shall have power to name an umpire, whose decision shall be binding on all parties.”
The learned counsel for appellant in effect argues that the existence of such provision in the contract is an absolute bar to any suit in a court for the recovery of the value of extra work. We cannot agree with him in this contention. The question was briefly referred to and passed upon in Smith v. Alker ( 102 N. Y. 87 ), at the close of the opinion, on pages 92 and 93, where it is held that it is as much the duty of the defendant as of the plaintiff to take active steps for the selection of arbitrators and the settlement of the disputed points by that method; and that if neither party has sought to avail himself of the privilege to submit the controversy to arbitration, the existence of such a clause in the contract will constitute no bar or defense to a suit ai law for the amount alleged to be due. This is our.understanding of the answer made by the Court of Appeals in a case similar in its facts, though not identical in form, and certainly analogous in principle, to the same argument appellant now urges; and we regard such decision as binding and conclusive upon us.
Appellant also contends that the learned referee did not decide the questions of fact that arose according to the fair preponderance of evidence. We have examined the record with care, and discover nothing to induce us to modify the
Of course, as the owner permitted the contractors to go on and complete after the contract time had expired, and has since accepted the buildings, he cannot deny their right to sue for the contract price. There was sufficient evidence from which the referee might infer and find, as he did, that the delay in the completion of the buildings was caused by defendant’s failing to carry out the contract on his part in not excavating and furnishing materials in time; by the necessary interference with the original plans on account of extra work ordered; and by the occurrence of rainy days. Accepting the referee’s finding on this point, we think he correctly disallowed any claim for damages by reason of such delay in completion.
We have examined the other exceptions taken at the trial and points raised on this appeal, and do not find anything which induces us to interfere with the judgment as rendered, or requires any special notice.
The judgment appealed from should be affirmed, with costs.
Bisohost, J., concurred.
Judgment affirmed, with costs.
Cases cited
- Smith v. Alker 102 N. Y. 87 p. 179