Liability Insurance Co. Ltd. (EMLICO) and the Massachusetts commissioner of insurance 30 days in which to come up with a negotiated settlement.

The decision is the latest in the messy legal battle between the commissioner and the Bermuda liquidators for control over the insolvent insurer.

Massachusetts commissioner of insurance Linda Ruthardt has petitioned for receivership over the company, while Bermuda liquidator Coopers & Lybrand wants to maintain proceedings on the Island.

In making his decision US District Court Judge Douglass P. Woodlock said he agreed with Bermuda Chief Justice Austin Ward who asked the US courts for settlement of the dispute through negotiations, said Bill Bodie, spokesman for the joint liquidators.

COURTS CTS