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 Maryland, 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 specific claims 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 abiding by the agreement to arbitrate, the other party can file a motion to compel arbitration in court. The court will then evaluate whether the arbitration agreement is enforceable and whether the claims at issue are arbitrable. If the court finds in favor of the party seeking arbitration, it will order the parties to proceed with arbitration instead of litigation. Arbitration proceedings are typically initiated by filing a case with the arbitration institution specified in the agreement, such as the American Arbitration Association (AAA), JAMS, or the Financial Industry Regulatory Authority (FINRA), depending on the nature of the dispute and the terms of the arbitration agreement.