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 Iowa, as in other states, the process to compel arbitration is governed by both the Federal Arbitration Act (FAA) and state law. To compel arbitration, the party seeking it must demonstrate that a valid arbitration agreement exists between the parties involved and that the claims at issue fall within the scope of that agreement. If there is an existing arbitration clause in a contract, and one party initiates a lawsuit in court instead of arbitration, the other party can file a motion to compel arbitration in accordance with the terms of the contract. The motion to compel arbitration would typically be filed in the court where the lawsuit is pending. If the court finds the arbitration agreement to be valid and applicable to the dispute, it will order the parties to proceed to arbitration. The arbitration itself would be conducted by an organization agreed upon by the parties, such as the American Arbitration Association (AAA), JAMS, or the Financial Industry Regulatory Authority (FINRA), depending on the subject matter of the dispute and the terms of the arbitration agreement.