Motion to Compel Arbitration: Sample & Complete Filing Guide

A motion to compel arbitration moves your debt lawsuit out of court. You force the dispute into arbitration instead of litigation. You need a valid arbitration clause in your contract to file this motion.

Debt collectors often sue you in court. You can fight back by requesting arbitration through a motion. Arbitration can delay the court process or end the lawsuit entirely.

Arbitration comes in two forms: binding and non-binding. Binding arbitration creates a final decision enforceable in court. Non-binding arbitration only offers recommendations both parties can accept or reject.

Courts must grant arbitration motions even when lawsuits contain non-arbitrable claims. The judge can only deny your petition if non-arbitrable issues exceed the parties’ scope.

Prerequisites for Filing a Motion to Compel Arbitration

You must meet specific requirements before filing your motion. Missing prerequisites can derail your entire case.

Verify Your Arbitration Agreement

You need a valid, signed arbitration agreement between both parties. Review your credit card agreement or contract carefully. Check for an arbitration clause with proper signatures.

Our partner Solo can help you review your contract and identify arbitration clauses.

Confirm Your Dispute Qualifies

Some agreements exclude certain disputes from arbitration. Your contract might classify pay disputes as arbitrable but workplace disputes as non-arbitrable. Make sure your specific issue falls within the arbitration provision.

Identify the Arbitration Location

Your contract specifies where arbitration must occur. You file your motion in the district designated for arbitration. The arbitration provision contains the district information you need.

Choose Your Court

Federal courts favor arbitration more than state courts. You can file federally if you meet these requirements:

• You and the opposing party reside in different states
• The dispute involves at least $75,000

State court remains an option when federal court isn’t available.

How to Draft Your Motion to Compel Arbitration

Section 4 of the Federal Arbitration Act lets you file before the plaintiff sues you. You can draft your motion proactively.

Include these elements in your motion:

• A clear title: “Motion to Compel Arbitration”
• The complete arbitration clause from your agreement
• Full identities of both parties involved
• States of residence for both parties
• Explanation of the court’s jurisdiction
• Request for a court order mandating arbitration
• Your signature (plus attorney signature if represented)

Filing and Serving Your Motion

File With the Court Clerk

Submit your completed motion to the court clerk in person or through your attorney. Each court has different filing requirements and fees. Contact the clerk about local rules and payment methods.

Schedule Your Hearing

Schedule your hearing when you file the petition. Courts typically hold hearings five days after filing.

Serve the Other Party

You must serve notice after the court accepts your filing. Send copies of your complaint, hearing notice, and court summons. The court provides the summons document or a blank form to complete.

Federal court service options include:

• Hiring a private process server
• Using someone 18 or older not involved in the lawsuit

What Happens After Filing

Your motion creates three possible outcomes:

• The court denies the motion and proceeds with trial
• The court accepts the motion and orders arbitration
• The opposing party dismisses the case to avoid arbitration costs

Debt collectors often dismiss cases rather than pay arbitration fees. Arbitration costs frequently exceed the debt amount they’re trying to collect. Case dismissal represents the ideal outcome for defendants.

Our partner Solo helps you respond to debt lawsuits and file motions to compel arbitration quickly.

Understanding Arbitration Costs

Many credit agreements require creditors to pay arbitration fees. Creditors become contractually bound to cover costs they cannot recover. You pay nothing even if you lose.

Some agreements split arbitration costs between both parties by default. Employment arbitration requires employers to cover costs but allows recovery if they win.

Read your credit agreement carefully before filing. Some creditors retain rights to recover arbitration fees upon winning.

Major Arbitration Organizations

JAMS Solutions and American Arbitration Association (AAA) handle most arbitration cases. Your case will likely involve one of these organizations.

JAMS requires both parties to choose an impartial arbitrator. The arbitrator reviews briefs, documentary evidence, and testimonies. They issue an award within 30 days covering relief, damages, and costs. Courts confirm the award as a judgment.

Filing Fees Comparison

JAMS and AAA charge different fees based on claim amounts:

• JAMS: $250 for claims under $10,000; $2,500 for claims $10,000-$100,000
• AAA: $200 for claims under $10,000; $400 for claims $10,000-$75,000

These fees often exceed the debt amount, encouraging creditors to dismiss cases.

Attending Your Court Hearing

The judge determines whether your arbitration agreement is valid. Valid agreements result in orders compelling arbitration. Invalid agreements lead to trial orders.

You must prove your agreement meets legal standards. Bring copies of your signed contract and relevant documentation.

Real-World Example

Mason faced a lawsuit from Discover for credit card debt. He filed an Answer to the complaint initially. When Discover filed for summary judgment, Mason responded with a motion to compel arbitration. Discover’s attorneys dismissed the case days later.

Many creditors drop lawsuits rather than face expensive arbitration proceedings. Your motion creates financial pressure on debt collectors.