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 Michigan, as in other states, to compel arbitration under the Federal Arbitration Act (FAA) or a state law arbitration statute, the party seeking arbitration must first demonstrate that a valid arbitration agreement exists between the parties involved. Additionally, the claims that are being brought forward must fall within the scope of that arbitration agreement. If these conditions are met, a party can initiate arbitration by filing with an arbitration administrator such as the American Arbitration Association (AAA), Judicial Arbitration and Mediation Services (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. Michigan courts will generally enforce arbitration agreements and compel arbitration if the agreement is valid and the dispute is arbitrable under the agreement's terms.