Arbitrators Should Resolve Consolidation Issue, Federal Judge Rules

BOSTON - The question of whether two disputes arising from the same set of reinsurance treaties should be consolidated into a single arbitration is a question for the arbitration panel, rather than the court, to decide, a Massachusetts federal judge has ruled. Allstate Insurance Co. v. Liberty Mutual Insurance Co., No. 11-10415 (D. Mass.).

On May 19, Judge Richard G. Stearns of the U.S. District Court for the District of Massachusetts explained that the issue of consolidation is "a procedural matter" and therefore should be determined by the arbitrators.

Allstate reinsured Liberty Mutual under various excess of loss reinsurance …