Local Rule D.N.J. LBR 9019-3: Compromise or Settlement of Controversy

D.N.J. LBR 9019-3. Compromise or Settlement of Controversy

(a) Motion required. A party seeking an order of the court approving a proposed compromise or settlement of a controversy must file a motion and, except where the motion is heard on shortened time, must file Local Form Notice of Proposed Compromise or Settlement of Controversy.

(b) Adversary Proceeding. If the settlement is of an adversary proceeding, the motion should be filed in the adversary case and the Notice of Proposed Compromise or Settlement of Controversy filed simultaneously in both the adversary and the main case.

2024 Comment This Rule is amended to clarify the procedures set forth in Bankruptcy Rule 9019 for approval of a proposed compromise or settlement. Where a motion under Bankruptcy Rule 9019 is not required, parties are directed to D.N.J. LBR 9019-4.

When the motion will be heard on shortened time, the motion should be served as directed by the Order Shortening Time and Local Form Notice of Proposed Compromise or Settlement of Controversy is not needed.

2015 Comment This Rule is new. In addition to the motion required under Bankruptcy Rule 9019, it provides the procedure for a party seeking approval of a proposed compromise or settlement of controversy to supply information to the court to satisfy the clerk's responsibility to send notice under Bankruptcy Rule 2002(a)(3).

Local Bankruptcy Rule 6004-1 addresses the notice requirements under Bankruptcy Rule 2002(a)(2) for a motion to sell property.