No. 2532 Philadelphia, 1983, Appeal from the Order entered August 31, 1983, Court of Common Pleas, Lehigh County, Civil Division at No. 83-C-512.
William J. Cassidy, Lancaster, for appellant.
Harry A. Dower, Allentown, for appellees.
Cavanaugh, Cirillo and Johnson, JJ.
[ 343 Pa. Super. Page 251]
Appellant, Leon M. Martin, seeks review of the trial court's order which granted Appellees' motion to strike Appellant's complaint.
On April 22, 1982 Appellant and Appellee, ITM/International Trading & Marketing, Ltd. (hereinafter "ITM") entered into an agreement calling for Appellant to advance $18,000 to ITM for the specific purpose of purchasing gold bars. In return, Appellant was to receive a demand note for the sum advanced, plus the right to receive a return on his investment of 25% of the profit. The agreement contained, inter alia, the following language:
[ 343 Pa. Super. Page 25214]
. If any dispute should arise under this Agreement that the parties themselves do not settle, the dispute shall be submitted to binding arbitration under the Rules of the American Arbitration Association to be held in Philadelphia, Pennsylvania.
Appellant advanced the $18,000 to ITM, but sought to withdraw his acceptance on January 3, 1983 by sending, pursuant to Section 207(m) of the Pennsylvania Securities Act of 1972,*fn1 a Notice of Withdrawal which demanded the return of his "$18,000 plus $1,500 additionally lost plus interest" (R. at 13a). ITM refused and Appellant filed his complaint in the Court of Common Pleas of Lehigh County.
ITM moved to strike Appellant's complaint. The motion was granted. The trial court, in its order striking the complaint, cited paragraph 14 of the agreement in question and concluded that the dispute should be resolved in the first instance through arbitration.
On appeal, Appellant contends that an agreement to arbitrate issues involving alleged violations of the Pennsylvania Securities Act of 1972 is unenforceable and violative of ...