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 Vermont, the consolidation of lawsuits is governed by the Vermont Rules of Civil Procedure, specifically Rule 42(a), which allows for the consolidation of actions involving common questions of law or fact. The court may order a joint hearing or trial of any or all the matters in issue in the actions, consolidate the actions, or issue any other orders to avoid unnecessary costs or delay. This is applicable when cases share the same or similar parties, legal issues, and factual issues, and are pending in the same court or in different courts within Vermont. If the cases are in different courts, one may be transferred to the other for consolidation purposes. The decision to consolidate is at the discretion of the court and is intended to promote efficiency and judicial economy. Federal courts have a similar rule under the Federal Rules of Civil Procedure, Rule 42(a), which allows for consolidation when actions before the court involve a common question of law or fact. The decision to consolidate in either state or federal court takes into account the potential benefits of combined proceedings against any prejudice that might result to the parties involved.