Originally from Dispute Resolution Journal

MARITIME—INTERNATlONAL-~™CONSOLIDATION

Federal courts lack the authority to consolidate separate arbitrations absent express contractual authorization or consent of the parties. Weyerhaeuser chartered two ships from Trans-Pacific Shipping, the successor-in-interest to Western Seas Shipping. The ships were subchartered to Karlander, A dispute arose between Karlander and Weyerhaeuser over cargo stowage restrictions, and Karlander demanded arbitration pursuant to the contract. Weyerhaeuser then demanded arbitration with Trans-Pacific for indemnification for any recovery Karlander might be awarded. Weyerhaeuser moved to compel consolidation of the two arbitrations into a single arbitration before five arbitrators. Both Karlander and Trans-Pacific opposed consolidation, and the district court denied the motion (568 F, Supp. 1220 (N.D. Cal. 1983)). Weyerhaeuser appealed, contending that the court had the authority to compel consolidation under the United States Arbitration Act, 9 U.S.C- § 1 ef seq-, and under Kules 8I(a)(3) and 42{a) of the Federal Rules of Civil Procedure. (Rule 81(a)(3) gives effect to the Federal Rules in arbitration actions where Title 9 does not address the issue; Rule 42(a) authorizes the consolidation of actions involving a common question of law or fact, in the discretion of the court.)