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 South Carolina, 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 at issue fall within the scope of that agreement. The arbitration agreement is typically a clause within a larger contract. If a party initiates a lawsuit in court despite an existing arbitration agreement, the other party can file a motion to compel arbitration, asking the court to enforce the terms of the arbitration agreement. The arbitration process itself is usually 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). South Carolina courts generally uphold arbitration agreements, in line with the FAA, provided they meet legal standards for contract formation and are not unconscionable or overly broad in scope.