Mleynek
Mleynek v. Headquarters Cos.
Opinion
Lead Opinion
Wallin, J.
Darryl and Sherryl Mleynek appeal the denial of their petition to compel arbitration of an unlawful detainer action. They argue the arbitration provision in a related franchise agreement compels arbitration of the unlawful detainer dispute.
Facts
In July 1979, Darryl and Sherryl Mleynek entered into a franchise agreement with Headquarters Companies (HQ) to operate a “HQ Center” which provides businesses with office space, furniture, and other services. The franchise agreement* required the Mleyneks to negotiate with HQ for the lease of the center premises, and required the Mleyneks to perform all lease obligations. In the event of any controversy or dispute arising out of or in connection with the franchise agreement, the parties agreed to submit to arbitration.
*1135 HQ leased office space in Newport Beach and subleased the property to the Mleyneks in October 1979. The sublease required the property to be used “in accordance with the Franchise Agreement.” In addition, the sublease was to terminate upon the termination of the franchise agreement.
On July 19, 1984, HQ filed an unlawful detainer action based on the Mleyneks’ failure to pay rent. The Mleyneks filed an…