Townsend

Defendants Michael Townsend and Margaret Torma appeal an order denying their petition to stay proceedings and compel arbitration in an action brought by plaintiffs Pacific Investment Company, a limited partnership doing business as Pacific Gardens, Todd Schiffman, Larry Larson, Donald and Leonard Olds, Smile Peres, Hugh Rouse, and Robert Dahl.

The primary issue is whether an arbitration clause in a limited partnership agreement covers matters raised in plaintiffs’ complaint.

Background

Defendants Michael Townsend and Margaret Torma and plaintiffs Schiffman, Larson, Ronald and Leonard Olds, Peres, Rouse, and Dahl are limited partners in Pacific Investment Company. Michael Townsend initially was also the general partner. Michael Townsend, his brother defendant Thomas Townsend, and their mother Margaret Torma, own defendant General Management Company. Margaret Torma’s husband, defendant Tibor Torma, does business as Quality Maintenance Company. The partnership and General Management Company maintain bank accounts or certificates of deposit with defendants Bank of California, Crocker Bank, and Brentwood Savings & Loan. Pacific Investment Company was formed in December 1970…