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 York, as in other states, the Federal Arbitration Act (FAA) and state law arbitration statutes govern the process of compelling arbitration. To compel arbitration, the party seeking it must demonstrate that there is a valid arbitration agreement in place and that the claims at issue fall within the scope of that agreement. Arbitration can be initiated by filing a case with an arbitration administrator such as the American Arbitration Association (AAA), JAMS, or the Financial Industry Regulatory Authority (FINRA), depending on the terms of the arbitration agreement. Alternatively, if a lawsuit has been filed in court, a party can file a motion to compel arbitration in court to enforce the arbitration agreement. New York courts will evaluate the motion to compel by examining the existence and the applicability of the arbitration agreement to the dispute in question.