Sandefer v. Reynolds Securities Inc‪.‬

Alice Sandefer instituted this action against Reynolds Securities, Inc., an investment brokerage firm, and John J. Fleming, a registered representative of that firm, alleging several claims for relief arising out of transactions covered by the Colorado Securities Act. The trial court granted the defendants motion to dismiss, finding that it lacked subject matter jurisdiction because of compulsory arbitration provisions in the contracts executed by the parties. On appeal, Sandefer argues among other things, that under § 11-51-125(7), C.R.S. 1973, arbitration agreements between brokers and investors are unenforceable. We agree and reverse.