Michigan Judge Sends Consolidation Issue To Arbitrator

DETROIT - A Michigan judge has ruled that an arbitrator must decide whether a reinsurance dispute involving damages sustained by Dow Chemical Co. facilities in two hurricanes should be resolved in two or multiple arbitration proceedings. Dornico Reinsurance Co. v. ACE American Reinsurance Co., No. 07-12622, E.D. Mich.).

On March 5, Judge Thomas L. Ludington of the U.S. District Court for the Eastern District of Michigan denied the reinsurers' motion to stay the proceedings pending appeal of an earlier ruling that the consolidation issue should be arbitrated.

Dorinco Reinsurance Co. provided $1.2 billion of casualty coverage for Dow Chemical Co.'s …