Stowe v. Mut. Home Builders' Corp.
| Decision Date | 02 December 1930 |
| Docket Number | No. 145.,145. |
| Citation | 233 N.W. 391,252 Mich. 492 |
| Parties | STOWE v. MUTUAL HOME BUILDERS' CORPORATION. BIERCE v. SLATER. |
| Court | Michigan Supreme Court |
OPINION TEXT STARTS HERE
Appeal from Circuit Court, Kent County, in Chancery; Willis B. Perkins, Judge.
Action by Ernest A. Stowe against the Mutual Home Builders' Corporation, in which William E. Slater was appointed receiver. In the receivership, Lee H. Bierce applied to the court for confirmation of the award of arbitrators on a claim asserted against him by the receiver. From an order confirming the arbitrators' award, the receiver appeals.
Order of confirmation and award of arbitrators set aside.
Argued before the Entire Bench. Dunham, Cholette & Allaben and Linsey, Shivel & Phelps, all of Grand Rapids, for appellant.
Earl W. Munshaw and Amos F. Paley, both of Grand Rapids, for appellee.
Petitioner and appellee entered into a written contract with the Mutual Home Builders' Corporation to build for him a house. The contract provided:
‘In the erection of said building, the first party hereto is to act in the capacity of general contractor, subletting the contracts between competitive proposals, said proposals to be submitted to second party hereto and receive the sanction or approval of said second party before the final letting of said subcontracts, the first party hereto reserving the right to require of said subcontractors' bonds guaranteeing the faithful performance of said subcontracts, according to plans, specifications and details heretofore referred to.
‘The consideration for the construction of said building shall be the net aggregate sum of the subcontracts thus let.
The house was so substantially completed in accordance with this contract that petitioner and appellee moved into it and continued to occupy it until the trial of this case. About the time petitioner moved into the house, an auditor of the books of the Mutual Home Builders' Corporation prepared a statement, from the books of the company, of the amount owing by petitioner and appellee, and it was presented to him. The auditor's statement showed expenditures by the company in the amount of $29,749.60. Petitioner did complain of some defects in the building of a minor character, and these defects were remedied by the builder without cost to petitioner, who continued to pay on the contract regular monthly payments. Prior to this suit he mortgaged the premises involved, and in his application to the bank for a mortgage loan placed the value of the lot at $10,000 and the value of the house erected thereon at $31,000.
The Mutual Home Builders' Corporation went into the hands of a receiver, who urged a settlement of all of the claims of the company, including that here involved. Petitioner did not want, by reason of his position, to have a lawsuit. He disputed the amount due the company on the contract, and sought to have the same arbitrated. The receiver had no authority to enter into an arbitration agreement without the approval of the court appointing him. After some negotiations, an agreement of arbitration was, with the consent of the court appointing the receiver, entered into, which agreement provided the arbitrators appointed were to ...
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