To start the arbitration process, pull out the contract that contains your arbitration clause, complete a Demand for Arbitration with the organization the clause names (usually the American Arbitration Association or JAMS), pay the filing fee, and send copies to both the organization and the other party. The steps are fewer than a lawsuit, but each one has to be done right. What follows walks through them in order.
Read the Arbitration Clause Before You Do Anything Else
Your right to arbitrate comes from a specific provision in a contract you signed. That clause controls almost everything about how your case proceeds, so find it and read it carefully. It could be in an employment agreement, a consumer terms-of-service document, a vehicle purchase contract, a financial account agreement, or a home construction contract.
A standard clause says that disputes “arising out of” the agreement will be resolved through binding arbitration rather than in court. It will almost always name a specific administering organization, typically the American Arbitration Association (AAA) or JAMS, and specify which set of that organization’s rules governs the proceedings.1JAMS Mediation, Arbitration, ADR Services. Comprehensive Arbitration Rules and Procedures The Federal Arbitration Act makes these agreements enforceable nationwide so long as the underlying transaction involves interstate commerce, which covers virtually all modern commercial activity.2Office of the Law Revision Counsel. Title 9 – Arbitration
Look for three things in particular. First, check whether the clause requires a preliminary step like informal negotiation or mediation before you can file for arbitration. Many contracts include “step clauses” that make mediation a prerequisite, and skipping that step can get your demand dismissed. Second, note any class action waiver, which prevents you from joining a group claim; the Supreme Court has held these waivers enforceable under the FAA. Third, watch for a delegation provision, which assigns questions about the clause’s enforceability to the arbitrator rather than a court.
Confirm You Actually Have to Arbitrate
Having signed an arbitration clause does not always mean you must arbitrate. A few exceptions matter before you commit to filing.
The largest federal carve-out covers sexual assault and sexual harassment claims. Under 9 U.S.C. §402, the person bringing such a dispute can choose court instead of arbitration, regardless of any pre-dispute arbitration agreement or class action waiver they previously signed.3Office of the Law Revision Counsel. 9 U.S. Code 402 – No Validity or Enforceability
Many arbitration agreements also preserve small claims court as an alternative. Consumer fairness rules at JAMS explicitly require that no party be prevented from pursuing remedies in small claims court for disputes within that court’s jurisdiction.4JAMS Mediation, Arbitration, ADR Services. Consumer Arbitration Minimum Standards Read your clause for similar language. If your dispute fits within the dollar limits of small claims court, that door may still be open.
Finally, the FAA allows arbitration agreements to be invalidated on the same grounds that would void any contract, such as fraud, duress, or unconscionability. Those challenges are fact-intensive and vary by jurisdiction.
Watch the Statute of Limitations
Filing for arbitration does not freeze the clock on your legal claims. The same statute of limitations that applies to a lawsuit generally applies to your arbitration demand. If you would have two years to file a breach-of-contract case in court, you have the same window to demand arbitration.
There’s a wrinkle. In some states, filing for arbitration does not toll the limitations period for a related court case. If your arbitration gets dismissed on jurisdictional or procedural grounds after the clock has run, you can find yourself with no forum at all. When there’s real doubt about whether the dispute belongs in arbitration or in court, the safer move is to file a court action at the same time and ask the court to stay it pending arbitration. That preserves the claim in both places.
Gather Your Filing Materials
The initial filing document is called a Demand for Arbitration (AAA’s term) or a Notice of Arbitration. Official forms are available on the website of whichever organization your contract specifies.5American Arbitration Association. Demand for Arbitration Consumer Arbitration Rules Before filling it out, put together:
- Party information: full legal names, current addresses, phone numbers, and email addresses for you and the opposing party. If either side has an attorney, include that attorney’s contact information.
- The contract: a complete, legible copy of the entire agreement containing the arbitration clause. Not just the arbitration page.
- A statement of claims: a concise written summary of the dispute, with the key facts, relevant dates, and chronological order of what happened.
- Requested relief: the specific outcome you want, whether a dollar amount, reimbursement of specific costs, or an order requiring the other party to take some action.
The statement does not need to read like a court complaint, but clarity matters. The arbitrator’s first impression of your case comes from this document, and a disorganized demand makes everything harder later. Stick to facts and dates rather than arguments about who was right.
Pay the Filing Fee
Every arbitration filing requires an upfront fee, and the amount depends on whether you’re classified as a consumer, an employee, or a business filing a commercial claim.
In consumer disputes, the fees are designed to be comparable to court filing costs. Under JAMS consumer minimum standards, a consumer initiating arbitration pays $250, and the company bears all remaining costs, including the balance of the filing fee, case management fees, and the arbitrator’s professional fees.4JAMS Mediation, Arbitration, ADR Services. Consumer Arbitration Minimum Standards The AAA has a similar structure under its Consumer Arbitration Rules, with a modest filing fee for the consumer and the balance shifted to the business. Check the fee schedule published by whichever organization your contract names; the specific amounts and allocation rules differ.
Commercial arbitration between two businesses works differently. Filing fees scale with the size of the claim and can run into thousands of dollars for high-value disputes. Both sides also share the cost of the arbitrator’s hourly rate, which for experienced arbitrators in complex cases typically runs several hundred dollars per hour. Your case will not be opened until the filing fee is paid.6American Arbitration Association. AAA File a Case – Start Your Arbitration or Mediation
File the Demand and Serve the Other Side
Once your Demand for Arbitration is complete and your materials are assembled, file the package with the designated organization. The AAA accepts filings through its online WebFile portal, by email to its case filing address, or by mail.5American Arbitration Association. Demand for Arbitration Consumer Arbitration Rules JAMS similarly accepts online and mail filings. Submit the completed form, a copy of the contract, and the filing fee together.
You must also send a copy of the demand and all attachments to the opposing party at the same time you file with the organization.7Lexis Advance. AAA Demand for Arbitration This is not optional, and it should not wait until after the organization processes your filing. Certified mail with return receipt requested creates a documented record of exactly when the other party received notice. Keep copies of everything you send and every mailing receipt.
What Happens After You File
Once the organization confirms your filing is complete and the fee is paid, things move relatively quickly.
Case Number and the Response Window
The organization sends written confirmation with a case number and the name of a case administrator who serves as your point of contact for procedural questions. It separately notifies the opposing party (the “respondent”) that a case has been filed and provides them with a copy of your demand.
Under AAA Commercial Arbitration Rules, the respondent has 14 calendar days from the date the AAA sends notice to file an answering statement.8American Arbitration Association. Commercial Arbitration Rules – Rules Amended and Effective September 1, 2022 JAMS Comprehensive Rules also set a 14-calendar-day deadline.1JAMS Mediation, Arbitration, ADR Services. Comprehensive Arbitration Rules and Procedures If the respondent does not reply within that period, the organization treats it as a denial of your claims, and the case moves forward anyway. The answering statement may include counterclaims, which you then get an opportunity to respond to before arbitrator selection begins.
A Mediation Step, If Your Contract Requires One
If your arbitration clause includes a mediation-first requirement, complete that step before arbitration can proceed. Even when mediation is not mandatory, both AAA and JAMS offer mediation services alongside arbitration, and in industries like construction, technology, and employment it is treated as an almost-expected preliminary. A skilled mediator resolves many disputes before they reach a hearing.
Selecting the Arbitrator
Once the pleadings are in, the organization begins the arbitrator selection process. The typical approach is a list-and-rank system: the organization sends both parties a list of qualified arbitrators drawn from its roster, filtered by subject matter expertise and geographic availability. Each side reviews the candidates, ranks them, and strikes anyone they find unacceptable. The organization then appoints the highest-ranked candidate acceptable to both sides. If the parties strike everyone on the list, the organization appoints an arbitrator on its own.
After an arbitrator is identified, any disclosures about potential conflicts of interest are shared with the parties. You typically have seven calendar days to object based on those disclosures. That window is short, so don’t sit on it.
If the Other Side Refuses to Arbitrate
Sometimes a party ignores or outright refuses a demand for arbitration despite having signed a valid arbitration agreement. When that happens, you can petition a federal district court for an order compelling arbitration under Section 4 of the FAA. The petition goes to whichever court would have had jurisdiction over the underlying dispute if it had been filed as a lawsuit.9Office of the Law Revision Counsel. 9 U.S. Code 4 – Failure to Arbitrate Under Agreement; Petition to United States Court Having Jurisdiction for Order to Compel Arbitration
You must give the refusing party at least five days’ written notice of the petition. The court then holds a hearing. If the existence of a valid arbitration agreement is not genuinely in dispute, the court orders both sides to proceed to arbitration. If the other party claims no valid agreement was ever made, the court can send that question to a jury trial. Most refusals dissolve once a court motion is filed, because the law on enforceability is well settled.