Beverley v. Rennolds
Beverley v. Rennolds, Wythe 121 (1791), was a case discussing whether a court of equity could nullify an arbitrator's award based on a void contract.
Beverley had a gambling problem. When he was underage, he agreed to sell his land, worth £400, to Hipkins for £40-50 of tobacco and currency. When Beverley reached majority age, he refused to abide by the contract's terms, instead offering to repay Hipkins the money Hipkins had given him. Hipkins wanted the land, and convinced Beverley, against the advice of Beverley's friends, to refer the matter to arbitrators. The arbitrators awarded Hipkins £300, and Rennolds, acting as the executor of Hipkins's estate, got a judgment against Beverley based on the arbitrators' award. Beverley filed suit in the High Court of Chancery to stay the execution of Rennolds's judgment.
The Court's Decision
The High Court of Chancery stated that Beverley's and Hipkins's agreement was created under circumstances that would have rendered it void, regardless of Beverley's infancy at the time. Since the contract was void, Beverley committed no harm by failing to heed its terms, and any award against Beverley based on the contract would be illegal. Since the award was illegal, the HCC concluded, Beverley properly sought an injunction against it in equity, and the HCC perpetually enjoined the arbitrators' award. The HCC also noted that the arbitrators' award was so out of proportion from the possible harm that a court of equity could conclude from that fact alone that the arbitrators acted improperly and that the arbitrators' award should be enjoined.
Wythe uses one of Cicero's oratories to illustrate Hipkins's chutzpah by comparing Hipkin's demand to Fimbria's. According to Cicero, Fimbria tried to kill Scaevola, but was only able to wound him. Fimbria then proceeded to file a complaint against Scaevola; when the judges asked Fimbria what possible complaint he could have against Scaevola, Fimbria said that Scaevola did not take the entire weapon into his body.
- George Wythe, Decisions of Cases in Virginia by the High Court of Chancery, (Richmond: J.W. Randolph, 2d ed. 1851), 121.
- Wythe 122, citing Cic. orat. pro S. Roscio Amer.