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 Texas, as in other states, the Federal Arbitration Act (FAA) and state law arbitration statutes govern the enforcement of arbitration agreements. To compel arbitration, the party seeking it must demonstrate that a valid arbitration agreement exists and that the claims at issue fall within the scope of that agreement. This involves showing that the parties have agreed to arbitrate disputes rather than litigate them in court. 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 agreement and move the dispute to arbitration. The arbitration process is 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). Texas courts generally favor arbitration as a means of dispute resolution and will enforce arbitration agreements if they meet legal requirements.
