Sauter

Petitioner is a plaintiff in an action, in the respondent court, against William B. Logan & Associates, Inc. in which plaintiff seeks to rescind a contract and to have restored to him the money and note delivered by him to the defendant.

The alleged basis of the claim for rescission is (a) failure of consideration, and (b) failure to perform alleged inducing promises.

In his second cause of action plaintiff alleges false representations intended to and which did deceive plaintiff and which induced plaintiff to enter into the contract.

Attached to the complaint is a copy of the contract. It contains an arbitration clause, which provides that “. . . all claims of fraud in the inducement of this agreement and all claims for recision [sic] of this agreement . . . shall be settled by arbitration.”

The defendant filed a demand for arbitration of the matter with the American Arbitration Association.

The plaintiff sought to restrain the activation of the arbitration proceedings by petition in the trial court in which his rescission action is pending. No response was made to plaintiff’s petition. After a hearing on the application for injunctive relief, in which the defendant…