Can I require customers to sign contracts with binding arbitration clauses in Indiana? What are the requirements?

Based on the documents provided, it appears that you can require customers to sign contracts with binding arbitration clauses in Indiana, subject to certain requirements.

Requirements for binding arbitration clauses in Indiana

According to IC 34-57-5-4, for arbitration to take place under this chapter, at least one of the parties must have been a resident of Indiana or stationed at a United States military installation in Indiana for at least six months immediately preceding the filing of the petition or cause of action.

Additionally, IC 34-57-2-3 provides the procedure for ordering arbitration and staying arbitration proceedings. The court shall order the parties to proceed with arbitration if one party shows an agreement described in section 1 of this chapter, and the opposing party’s refusal to arbitrate. If the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue raised without further pleading and shall order arbitration if found for the moving party; otherwise, the application shall be denied.

IC 34-57-2-1(a) states that a written agreement to submit to arbitration is valid and enforceable, except upon such grounds as exist at law or in equity for the revocation of any contract. This chapter also applies to arbitration agreements between employers and employees or between their respective representatives (unless otherwise provided in the agreement).

Conclusion

In summary, you can require customers to sign contracts with binding arbitration clauses in Indiana, subject to the residency requirements and the procedure for ordering arbitration and staying arbitration proceedings. The written agreement to submit to arbitration is valid and enforceable, except upon such grounds as exist at law or in equity for the revocation of any contract.

Jurisdiction

Indiana

• General