Consolidation of lawsuits may be ordered by a court when two or more lawsuits involving the same or similar parties (plaintiff and defendant), legal issues, and factual issues are pending in the same court or in different courts in the same jurisdiction (state court system or federal court system). If the lawsuits are pending in different courts one case may be transferred to the other court, and the cases consolidated there.

Laws and rules regarding the consolidation—or transfer and consolidation—of lawsuits vary from state to state and in the federal court system.

In New Mexico, consolidation of lawsuits is governed by the New Mexico Rules of Civil Procedure. According to Rule 1-042, when actions involving a common question of law or fact are pending before the court, it may order a joint hearing or trial of any or all the matters in issue in the actions; it may order all the actions consolidated; and it may make such orders concerning proceedings therein as may tend to avoid unnecessary costs or delay. This is to ensure efficiency and consistency in the judicial process. The decision to consolidate is at the discretion of the court and is typically based on the court's determination that consolidation would serve the interests of justice and judicial economy. If the lawsuits are in different courts within the state, a transfer may be necessary before consolidation can occur. The process for transferring and consolidating cases may involve coordination between the courts to ensure that the cases are properly managed. In the federal system, similar rules apply under the Federal Rules of Civil Procedure, specifically Rule 42(a), which allows for consolidation when actions before the court involve common questions of law or fact.