A person or entity seeking to compel arbitration under the Federal Arbitration Act—or under a state law arbitration statute—generally must establish that a valid arbitration agreement exists and that the person or entity’s claims are within the scope of the arbitration agreement. A party typically initiates an arbitration proceeding by filing the arbitration case with the agreed-upon administrator of the arbitration (AAA, JAMS, FINRA), or by filing a motion to compel arbitration when another party has initiated a legal action in court (a lawsuit).
In Arkansas, as in other states, to compel arbitration under the Federal Arbitration Act (FAA) or state law, a party must demonstrate that a valid arbitration agreement exists and that the claims at issue fall within its scope. This is consistent with the FAA's policy favoring arbitration agreements. To initiate arbitration, a party usually files the case with the arbitration administrator specified in the agreement, such as the American Arbitration Association (AAA), JAMS, or the Financial Industry Regulatory Authority (FINRA). If a legal action has been initiated in court, a party seeking arbitration would file a motion to compel arbitration in that court. Arkansas courts will examine the arbitration agreement to ensure it is enforceable and covers the disputes in question, and if so, the court will stay the court proceedings and order the parties to proceed with arbitration.