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 Wisconsin, as in other states, the process to compel arbitration is guided by both the Federal Arbitration Act (FAA) and state arbitration statutes. 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 there is an existing agreement to arbitrate disputes, and one party initiates a lawsuit instead of arbitration, the other party can file a motion to compel arbitration in court. The motion must show the court that the dispute is subject to an arbitration agreement. If the arbitration agreement specifies an administrator (such as the American Arbitration Association, JAMS, or FINRA), the party seeking arbitration would typically initiate proceedings by filing a case with that organization. The court will then determine whether the agreement is enforceable and whether the claims are arbitrable under the terms of the agreement. If the court finds in favor of the party seeking arbitration, it will order the parties to proceed with arbitration in lieu of the lawsuit.