Elliot

Defendants Donald Albright, and Paine, Webber, Jackson & Curtis (hereafter Paine Webber) appeal from the denial of their motion to compel arbitration of plaintiffs’ claim under section 17(a) of the Securities Act of 1933 [15 U.S.C.A. § 77q] (hereafter 1933 Act).

Plaintiffs Beatrice L. Elliott, Jeanne E. Hubbard, Roy K. Hubbard, William J. Hubbard, Abdallah Moussa, Robert J. Parsons, and Richard B. Frazer filed a complaint in 1986 containing 56 causes of action under California law, the 1933 Act, and the Racketeer Influenced and Corrupt Organization Act, 18 United States Code Annotated section 1961 et seq. (hereafter RICO). They alleged fraud, breach of fiduciary duty, excessive trading, and other mishandling of their accounts by their broker, Akiva Bar, with the knowledge and control of his supervisor, Albright, at Paine Webber’s Monterey office. On motion of defendants, the RICO and state law claims were ordered to arbitration. The defendants had specifically excluded the 1933 Act claims from their request for arbitration, but had unsuccessfully sought a stay pursuant to Code of Civil Procedure section 1281.4 and section 3 of the Federal Arbitration Act ( 9 U.S.C.A. § 3…