Local Rule Rule 9019-1: Compromise and Settlement

Rule 9019-1. Compromise and Settlement

(a) Signed Writing Required. A compromise or settlement in a case or proceeding before the court, shall be in a writing signed by the parties. No compromise or settlement to which a trustee or debtor in possession is a party shall be binding upon a trustee or debtor in possession until it is approved under subparagraph (d) of this Local Rule.

(b) Adversary Proceeding. The parties shall notify the court in writing within 21 days of the compromise or settlement of an adversary proceeding.

(c) Dismissal of Adversary Proceeding—Objection to Debtor's Discharge. Notwithstanding Fed. R. Civ. P. 41(a)(1)(A) and Fed. R. Bankr. P. 7041, dismissal of an adversary proceeding objecting to the debtor's discharge shall be requested by motion.

(d) Motion to Compromise.

(1) A motion to compromise made under Fed. R. Bankr. P. 9019 shall comply with the provisions set forth in Local Rule 9013-1 and Fed. R. Bankr. P. 2002(a)(3). A copy of any related settlement documents shall be filed as an attachment to the motion.

(2) A motion to compromise an adversary proceeding shall be captioned and filed in the main bankruptcy case. If the compromise resolves an adversary proceeding, the motion shall set forth the proposed disposition of any such proceeding. Along with a proposed order approving the compromise, the motion shall attach a separate stipulation, order, or judgment captioned in the adversary proceeding which will enter in the adversary proceeding after the order approving the compromise is entered in the main bankruptcy case.

(e) Exception—Relief from Stay. The provisions of this Local Rule do not apply to agreements for relief from stay.