Local Rule Rule 9019-1: Compromise or Settlement
Bankr. D. Minn. — General rule
Rule 9019-1. Compromise or Settlement
(a) MOTION BY TRUSTEE IN CHAPTER 7 CASES. In a chapter 7 case, a motion made by a trustee under this rule must briefly describe the compromise or settlement and state the date by which any responses are due. The filing requirements for motions under Local Rule 9013-1 do not apply. If no response to the motion is filed, the court may enter an order approving the compromise or settlement without a hearing. If a response to the motion is filed, the trustee must contact the judge's courtroom deputy for a hearing date and give notice of such hearing to the objecting party.
(b) NOTICE ONLY. For any motion under Federal Rule of Bankruptcy Procedure 9019(a), the service requirements under Local Rule 9013-2(a) do not apply.
[Effective April 15, 1997. Amended effective January 1, 2002; July 17, 2023.]
2023 Advisory Committee Notes Local Rule 9019-1 was amended to remove any reference to Local Rule 6004-1, which governs the sale of estate property. Former subsections (a) and (b) were removed to ensure consistency with and as duplicative of Fed. R. Bankr. P. 2002(a)(3), which allows the court for cause shown to direct that notice not be sent. Amended subsection (a) still provides a more efficient method for chapter 7 trustees to notice settlements. The chapter 7 trustees are permitted to use negative notice procedures and do not have to comply with Local Rule 9013-1. Under Fed. R. Bankr. P. 2002(a)(3), a trustee can request that the court limit notice in any given case. Amended subsection (b) is meant to signify that a trustee only has to comply with the notice requirements found in Fed. R. Bankr. P. 9019(a) and Local Rule 9013-2(b), as opposed to the service requirements in Local Rule 9013-2(a). This is to ensure the local rule is not significantly more burdensome than the federal rule. Former subsection (c) was removed as it is more appropriately addressed in Local Rule 7041-1. Subsection (d) was removed as unnecessary and to ensure consistency with Fed. R. Bankr. P. 9019.