Court for the Commonwealth of Massachusetts Robert Steadman to review environmental claims between Electric Mutual Liability Insurance Co. (EMLICO) and General Electric.

This is the first step in getting a "special master'' approved in EMLICO's proposed US receivership proceedings. The Bermuda court made the decision Friday.

A special master, or referee, is appointed by all parties involved to review compromises of environmental claims and recommend to Massachusetts and Bermuda courts whether or not compromises should be approved.

Under the proposed receivership, EMLICO would remain in Bermuda in return for establishing a US receiver to monitor the insurer's liquidation.

Massachusetts Insurance Commissioner Linda Ruthardt would be receiver and oversee claims involving as much as $2 billion in environmental costs.

The agreement was criticised by EMLICO's reinsurers who claim GE and EMLICO knew the company was insolvent when it was redomiciled in Bermuda.

Justice Steadman's selection as special master has also been proposed to the Supreme Judicial Court of Massachusetts, which will consider the matter at a hearing on May 6.

Justice Steadman has more than 44 years of experience as a trial lawyer and trial judge. Prior to serving as a chief justice from 1988 to 1993, he was an Associate Justice for nine years.

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