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In Re Arbitration Between Allstate Ins. Co. and Global Reinsurance Corp.

Issue Discussed: Consolidation / Bifurcation / Class Arbitration

Submitted by Robert M. Hall

Date Promulgated: August 8, 2006

Issue Decided: Consolidation of arbitrable disputes.

The issue in this case was consolidation of disputes subject to arbitration. The court was asked to compel an arbitration panel to consider consolidation of disputes between the same parties under separate facultative certificates. The court observed that it did not have the power to compel consolidation but that this was not the issue raised in the motion.

Citing the strong federal policy in favor of arbitration, the court ruled that it did have the power to grant the motion and ruled as follows:

Accordingly, the parties shall select one panel to arbitrate the dispute over Facultative Certificate No. 71-18044. The question of whether the parties are to consolidate that proceeding with the dispute over Facultative Certificate No. 71-19392 shall be decided by that panel. The panel shall also determine the procedures for arbitrating the consolidated or non-consolidated disputes, including whether the two disputes, if not consolidated, are to be arbitrated by one panel.