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 New Jersey, as in other states, the process to compel arbitration is governed by both the Federal Arbitration Act (FAA) and state arbitration laws. To compel arbitration, the party seeking it must demonstrate that a valid arbitration agreement exists between the parties involved and that the specific claims at issue fall within the scope of that agreement. If there is an existing agreement to arbitrate, and one party initiates a lawsuit in court instead of arbitration, the other party can file a motion to compel arbitration in court. The motion must show the court that the case should be resolved through arbitration as per the agreement. Arbitration proceedings are typically initiated by filing a case with the arbitration administrator 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 clause.