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GASLIN v. L.G.C. EXPORTS (10/12/84)

filed: October 12, 1984.

GASLIN, INC., AND LORRAINE CAIRO
v.
L.G.C. EXPORTS, INC., AND JORGE FIGUEROA AND BLIMPIE INDUSTRIES, LTD., OR SUCCESSOR TO SAME. APPEAL OF JORGE FIGUEROA



No. 1876 Philadelphia, 1982, Appeal from the Judgment of the Court of Common Pleas, Civil Division, of Montgomery County, No. 82-323.

COUNSEL

Edwin B. Barnett, Philadelphia, for appellant.

John J. Hagarty, Philadelphia, for appellees.

Rowley, Montemuro and Johnson, JJ.

Author: Rowley

[ 334 Pa. Super. Page 134]

Jorge Figueroa appeals from the Judgment entered pursuant to the trial court's order of June 4, 1982, granting

[ 334 Pa. Super. Page 135]

    appellee's motion to confirm an arbitration award entered against L.G.C. Exports, Inc. (L.G.C. Exports), Jorge Figueroa and Blimpie Industries, Ltd. (Blimpie), in the amount of $35,177.50. After a thorough review of the record herein, we vacate the judgment and the trial court's order as to appellant.*fn1

By written contract dated October 22, 1979, Lorraine Cairo and Gaslin, Inc., licensees-appellees, purchased an exclusive license to operate a Blimpie Sandwich Restaurant from L.G.C. Exports, licensor. Lorraine Cairo, appellee, signed the franchise agreement on behalf of Gaslin, Inc., and Jorge Figueroa, appellant, signed it on behalf of L.G.C. Exports. The agreement contains the following arbitration clause:

20. ARBITRATION:

In the event LICENSEE has a disagreement with LICENSOR relating to the interpretation of their Licensing Agreement or relating to any conflict between the LICENSEE and LICENSOR, they both agree to submit the dispute to arbitration in accordance with the least expensive procedure of the American Arbitration Association in Philadelphia prior to the initiation of any legal proceeding whatsoever. Notwithstanding the foregoing LICENSEE agrees to continue payment without cessation of all 6% of gross sales due and owing LICENSOR or LICENSOR'S designated independent and unaffiliated leasing corporation, and continue to operate their Blimpie Base restaurant in accordance with the approved product line and operational manual indicated herein.

Eventually, a dispute involving the franchise agreement arose and Cairo demanded arbitration pursuant to the above-cited arbitration clause, naming as respondents, L.G.C. Exports, Blimpie, and Figueroa. In his Answer to Cairo's demand for arbitration, filed with the American Arbitration Association (Arbitration ...


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