This section contains the nature of the case and procedural background.

Thomas (P) sued Kidder, Peabody & Co and two of its employees, Perry and Johnson (Ds). P disputed a commission on the sale of securities. P refused to submit the dispute to arbitration and Ds sought a stay in Superior Court. P opposed the petition on grounds that the California Labor Code section 229 allowed an action for wages despite the existence of an agreement to arbitrate. The Superior Court denied D's petition to compel arbitration. The Supreme Court granted certiorari.

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