Boyko

MEMORANDUM AND ORDER

This matter is before the court on defendants Benning Financial Group, LLC (“BFC”) and Randy C. Benning’s (“Benning”) (collectively “defendants”) motion to stay action and compel arbitration. Plaintiffs oppose the motion. For the reasons set forth below, defendant’s motion is GRANTED in part and DENIED in part.

BACKGROUND

This case arises out of a serious of contracts plaintiffs entered into with defendants. Plaintiffs allege that in and prior to January 2004, Benning approached and solicited plaintiffs to open accounts with defendants and to permit defendants to invest plaintiffs’ money in securities that defendants represented were known to be safe and proven. (Compl., Ex. 2 to Notice of Removal, filed Apr. 26, 2010, ¶ 11.) On or about January 16, 2004, Gregory R. Boyko and Jean S. Boyko (the “Boykos”) executed and entered into a contract titled “Investment Consulting Agreement” with BFG, providing for a flat fee to be paid to BFG in the amount of $15,000.00 for “Business Consulting.” (Id. ¶ 12.) On that same date, the Boykos, individually and as trustees of the Boyko Revocable Family Trust dated April 27, 2001 (the “Boyko Trust”), and Jean Boyko, as…