The opinion of the court was delivered by: J. CURTIS JOYNER
Plaintiff, PaineWebber Inc., seeks from this Court an Order Compelling Arbitration, or in the alternative, for Consolidation or Injunctive Relief against Defendant, Gregory D. Johnson. For the reasons that follow, Injunctive Relief shall be granted.
Section Four of the Federal Arbitration Act, 9 U.S.C. §§ 1-14 (1970), gives courts the power to order a party to submit to arbitration "in the manner provided for" in a written arbitration agreement. A court should order arbitration upon a showing that "the making of the agreement for arbitration or the failure to comply therewith is not in issue." Volt Information Sciences v. Board of Trustees, 489 U.S. 468, 103 L. Ed. 2d 488, 109 S. Ct. 1248 (1989); PaineWebber v. Hartmann, 921 F.2d 507 (3d Cir. 1990).
1. Plaintiff, PaineWebber Inc., employed Defendant, Gregory D., Johnson, as a stockbroker and resident manager in PaineWebber's Williamsport, Pennsylvania branch office from June 1993 to October, 1994.
2. Pursuant to this contractual employment relationship, Johnson entered into various agreements with PaineWebber, including a Promissory Note.
3. The Promissory Note provided that PaineWebber made an Employee Forgivable Loan to Johnson in the amount of $ 675,000.00. Equal portions of that loan would be forgiven over the course of five years' employment. In the event that Johnson quit or was terminated for cause, the amount due under the Employee Forgivable Loan would be accelerated.
4. The Promissory Note contained two provisions relevant to this action. The first is an arbitration clause which reads:
[PaineWebber] and [Johnson] agree that any action instituted as a result of any controversy arising out of this Note, or as a result of any section interpretation thereof, shall be brought before the Arbitration facility of the National Association of Securities Dealers to the exclusion of all others.
5. The second pertinent provision is contained in the paragraph that defines termination for ...