Local Rule Rule 9019-1: Settlement & Compromise.

Rule 9019-1. Settlement & Compromise.

(a) Notification of Settlement.

(1) A movant or plaintiff must promptly inform the judge's chambers or courtroom deputy when a contested matter or adversary proceeding is settled.

(2) If a trustee is a party to the settlement, the trustee must use the appropriate LBF if one is available.

(b) Private Mediation. The parties may agree to mediation with a private mediator. The parties must select and compensate the mediator and, in conjunction with the mediator, agree to the time, place, and duration of the mediation.

(1) Mediation Agreement. A private mediator may, in the mediator's sole discretion, require the parties to sign a mediation agreement containing such terms as are reasonable and appropriate.

(2) Court-Ordered Private Mediation. The parties may seek an order from the court establishing the terms of private mediation in accordance with (e) below. A party seeking court appointment of the mediator must disclose the terms of any mediation agreement and whether the mediator has any connections to the parties.

(c) Judge-Hosted Settlement Conferences.

(1) Appointment Order. Upon a motion, oral request, stipulation, or the judge's own motion, the judge before whom a particular adversary proceeding, bankruptcy case, or other bankruptcy-related matter is pending may appoint another available active or recall-status United States Bankruptcy Judge from any judicial district, or any other available federal judge, to act as settlement judge to assist in possible resolution of disputes via a judge-hosted settlement conference. The details regarding the appointment of a particular settlement judge will be specified in an appointment order issued by the assigned judge.

(2) Process for Appointment. Any request for a judge-hosted settlement conference must first be proposed to the assigned judge.

(3) Judicial Immunity and Other Protections. Any active or recall-status bankruptcy judge appointed as a settlement judge will be so appointed because of a judicial position as, and to act in the specific capacity as, a United States Bankruptcy Judge. Any other federal judge appointed as a settlement judge will be so appointed because of a judicial position, and to act in the specific capacity, as such other federal judge may have. By serving as a settlement judge, such judge performs judicial duties. Accordingly, such judge and all persons assisting a settlement judge will have full, unqualified judicial immunity, as well as all other privileges, immunities, and protections of a United States Bankruptcy Judge or other federal judge, as applicable, and judiciary employees regarding any matters arising from or related to such judge's role as settlement judge.

(4) Waiver. All parties participating in a judge-hosted settlement conference will automatically—

(A) waive and be unable to assert any claims or causes of action against the settlement judge or any court employees assisting with the settlement process that arise from or relate to the settlement process; and

(B) except as may be required by otherwise applicable disclosure law, waive and be unable to seek to compel from the settlement judge or from any court employees assisting with the settlement process any oral or written testimony, document production (including, without limitation, regarding any records, reports, summaries, notes, communications, or other documents received or made by the settlement judge or any court employees while serving in such capacity), or other participation whatsoever in any litigation, judicial, arbitral, or other proceeding of any kind.

(5) Disqualification. No judge may serve as a settlement judge if that judge would be disqualified (a) under 28 U.S.C. § 144 if that judge were a district judge before whom the matter or proceeding is pending or (b) under 28 U.S.C. § 455 if that judge were a justice, judge, or other judicial officer before whom the matter or proceeding is pending, in each case unless the parties consent in writing after disclosure.

(d) Procedure Applicable to All Forms of Settlement Negotiations.

(1) No Stay of Action. Unless ordered by the assigned judge, the deadlines or event dates, including trial, in a matter or proceeding will not be stayed or changed by the occurrence or scheduling of settlement discussions, private mediation, or a judge-hosted settlement conference.

(2) Orders. A mediator or settlement judge has no authority to enter any order regarding the mediation. If the mediator or settlement judge desires entry of an order with respect to the mediation, the mediator or settlement judge must apply to the assigned judge with notice to the parties.

(3) Privilege. Unless otherwise agreed by all parties (and, if applicable, any mediator or settlement judge) in writing, settlement negotiations (including all statements made by a party, attorney, or other participant, and any memorandum or written submission provided to a mediator or settlement judge) are privileged and, unless otherwise authorized by the Federal Rules of Evidence, will not be reported, recorded, or otherwise placed in evidence, made known to the assigned judge, or construed for any purpose as an admission against interest.

(e) Procedure Applicable to Private Mediation Ordered by the Court and Judge-Hosted Settlement Conferences.

(1) Information; Scheduling. After entry of an order referring a case to private mediation or a judge-hosted settlement conference, the parties must provide any information requested by the mediator or settlement judge. The mediator or settlement judge may schedule a preliminary conference before the mediation or judge-hosted settlement conference and may also require the parties to participate in the preliminary conference along with their attorneys.

(2) Participation by Counsel and Parties.

(A) Unless otherwise approved by the mediator or settlement judge, the responsible attorney for each party must attend any mediation or judge-hosted settlement conference in person, including any additional sessions, and must be prepared to discuss in good faith—

(i) all liability issues,

(ii) all damage issues, and

(iii) the position and interests of the attorney's client regarding settlement.

(B) Unless excused by the mediator or settlement judge, a person with complete settlement authority for each party must attend the mediation or judge-hosted settlement conference in person. But the United States may be represented by the trial attorney.

(C) Where a party's defense is provided by a liability insurer, a representative of the insurer, unless excused by the mediator or settlement judge, must attend the mediation or judge-hosted settlement conference and have full authority to bind the insurer to a settlement.

(D) Unless excused from attendance by the mediator or settlement judge, an attorney's or party's willful failure to attend the mediation or judge-hosted settlement conference when required must be reported to the assigned judge by the mediator or settlement judge and may result in the imposition of sanctions.

(3) Settlement. Unless otherwise agreed by all parties and the mediator or settlement judge in writing, no party will be bound by anything done or said in any mediation or judge-hosted settlement conference unless a settlement is reached, in which event the agreement will be recited orally and recorded or reduced to writing and will be binding on all parties. In any dispute regarding the terms of the settlement, the terms of the settlement as communicated by the mediator or settlement judge and accepted by the parties are not privileged.

(4) Postmediation Notification to Assigned Judge.

(A) Private Mediation. As soon as reasonably practicable, and in no event later than the earlier of 14 days after the mediation has concluded or 7 days before any hearing or trial date, the mediator must notify the assigned judge in writing (which notice must not be filed, but must be e-mailed as requested by the assigned judge) whether the mediation proceeding was held and whether the matter has been settled or additional time is needed to reach or implement a settlement. The mediator must also disclose any willful failure to attend or participate in the mediation proceeding by any party or their counsel. The mediator must provide copies of the communication to the assigned judge to all participants or, if represented, to their counsel.

(B) Judge-Hosted Settlement Conference. As soon as reasonably practicable, the settlement judge must notify the assigned judge whether the mediation proceeding was held and whether the matter has been settled or additional time is needed to reach or implement a settlement. The settlement judge must also notify the assigned judge of any willful failure to attend or participate in the judge-hosted settlement conference by any party or their counsel.

(5) Termination of Mediation or Judge-Hosted Settlement Conference. The assigned judge may withdraw any matter from court-ordered private mediation or a judge-hosted settlement conference on the assigned judge's own order or upon request of any party, the UST, the mediator, or the settlement judge. Unless the parties and mediator or settlement judge agree otherwise in writing, any and all duties and responsibilities of the mediator or settlement judge terminate upon the filing of the report by the mediator or settlement judge required in (4) above.