Summary Case Note -- 7th Circuit Rules That Arbitrators Must Decide Consolidation Question in First Instance

Please click here for the highlighted PDF of this important recent U.S. Court of Appeals for the Seventh Circuit decision regarding consolidation of arbitration proceedings.

Employers Insurance Co. of Wausau v. Century Indemnity Co., 443 F.3d 573 (7th Cir. Apr. 4, 2006):

HELD: “The Agreements make no mention of consolidation . . . . The arbitration clause in each Agreement states, in relevant part, that ‘any dispute arising out of this Agreement shall be submitted’ to arbitration. This Court has found that the ‘any dispute arising out of’ language‘ does not address the question of who decides’ – the court or the arbitrator. The Agreements do not discuss who decides disputes regarding consolidation, so we presume the arbitrator decides.” [Citation omitted.]