Rowland

Here we hold that a defendants’ petition to compel arbitration may not be denied simply by reason of plaintiffs raising allegations of fraud in relation to the execution of the arbitration agreement which were absent from plaintiffs’ complaint.

Such allegations, under circumstances where the parties were not in a relationship of unequal bargaining power, do not justify the denial of a petition to compel.

Accordingly, we reverse the trial court’s order denying defendants/appellants PaineWebber’s and Robin Taliaferro’s petition for an order compelling arbitration.

Background

Respondents/plaintiffs Don and Marie Rowland, who are retired, opened an investment account with appellant PaineWebber at its Santa Barbara office in March 1989. PaineWebber assigned its employee, appellant Taliaferro, to manage the account. Respondent Don Rowland is a former securities broker and employee of PaineWebber.

Upon opening the account, respondents signed a written contract with PaineWebber, entitled “Client’s Agreement,” detailing the parties’ rights and responsibilities regarding the account. This agreement contains a provision requiring arbitration of all controversies arising out of…