But even if mediation were ordered, which is typically nonbinding in such cases, it is unclear how effective it would be if one side is an unwilling party.

Union Carbide paid $470 million in damages to the Indian government in 1989 for victims of the gas leak. In contesting the plaintiffs' claims in the water pollution case, it has argued that responsibility for the environmental conditions around the Bhopal plant lies with Indian authorities.

The plaintiffs' case got new life in November when it was revived by a federal appeals court, which said the district court made a mistake by throwing it out.

A lawyer for the plaintiffs, Richard Lewis of law firm Hausfeld LLP in Washington D.C, said he thought the appointment of a mediator would be a major development in the long-running case.

"This is a notorious environmental problem that has been begging for a response for decades now," Lewis said. "We have a unique opportunity to break through the logjam that the parties have been at for all of these years."

Feinberg, founder of law firm Feinberg Group LLP, is best known for his role as the special master of the Sept. 11th Victim Compensation Fund, which provided compensation to victims of the 2001 attacks and their families.

He declined to comment on the Bhopal case to Reuters, saying only that the court papers outlining his willingness to mediate in the matter "speak for themselves."

The case is Sahu et al v. Union Carbide Corporation et al, US District Court, Southern District of New York, No 04-08825.