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 Illinois, as in other states, the process to compel arbitration is guided 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 these criteria are met, the party can initiate arbitration by filing with an arbitration administrator such as the American Arbitration Association (AAA), JAMS, or the Financial Industry Regulatory Authority (FINRA), depending on the rules specified in the arbitration agreement. Alternatively, if a lawsuit has already been filed in court, the party seeking arbitration would file a motion to compel arbitration in that court. Illinois courts will enforce arbitration agreements that are subject to the FAA unless there are grounds for revocation of the contract, such as fraud, duress, or unconscionability.