Originally from Alternatives to the High Cost of Litigation

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Although it was decided 56 years into the 19th century, the real arbitration legacy of the 18th century can be seen from the House of Lords decision in Scott v. Avery. The plaintiff insured his shop with the Newcastle A 1 Insurance Association and so became an association member. Association Rule 25 provided:
 
… No member who refuses to accept the amount of any loss as settled by the committee, hereinbefore specified, in full satisfaction of such loss, shall be entitled to maintain any action at law, or suit in equity, on his policy, until the matters in dispute shall have been referred to, and decided by, arbitrators, appointed as hereinbefore specified; and then only for such sum as the said arbitrators shall award. …