Local Rule 2091-1: Withdrawal or Substitution of Attorney. — Bankr. D.S.D.

Rule 2091-1. Withdrawal or Substitution of Attorney.

(a) Withdrawal as attorney for a debtor or a trustee with substitution of new attorney. If a debtor or a trustee has retained a new attorney:

(1) the debtor or trustee shall sign a motion to substitute attorney and the debtor's or the trustee's new attorney shall file the motion. The motion to substitute attorney shall be served on parties in interest not electronically served. A notice of the motion is not required. The new attorney shall file a disclosure of compensation pursuant to 11 U.S.C. § 329(a), Fed.R.Bankr.P. 2016(b), and Bankr. D.S.D. R. 2016-1(a) and serve a copy of the disclosure of compensation on the debtor, if not electronically served. If the proposed substitution is for an attorney for a debtor in a chapter 11 or chapter 12 case or for a trustee, the debtor or trustee shall simultaneously file and give notice of an application to employ the new attorney pursuant to 11 U.S.C. § 327, Fed.R.Bankr.P. 2014(a), and Bankr. D.S.D. R. 2014-1, and the new attorney shall file a verified statement as the professional to be employed pursuant to Fed.R.Bankr.P. 2014(a); and

(2) the debtor's or the trustee's former attorney shall:

(A) in compliance with Bankr. D.S.D. R. 2016-1(b), file a supplemental disclosure of compensation if the former attorney, since the filing of the attorney's original disclosure of compensation, has rendered or has agreed to render additional services, or has received or has been promised additional payments; and

(B) in a chapter 11, 12, or 13 case, file an application and, if the fees sought, excluding sales tax, exceed $1,000.00, a notice under Fed.R.Bankr.P. 2016(a) and Bankr. D.S.D. Rs. 2002-1(e) and 2016-2 for fees incurred in connection with the case that have not yet been awarded and serve the application and any notice in compliance with Fed.R.Bankr.P. 2016(a) and Bankr. D.S.D. R. 2016-2(a).

(b) Withdrawal as attorney for a debtor or a trustee without substitution of new attorney. If an attorney wishes to withdraw as the attorney for a debtor or a trustee and the debtor or the trustee has not retained a substitute attorney, the withdrawing attorney shall:

(1) schedule a hearing by contacting the Scheduling Deputy Clerk pursuant to Bankr. D.S.D. R. 5070-1(b);

(2) file a motion to withdraw and a notice of hearing. The motion shall include a statement regarding whether any fees are owed but not yet paid. The notice shall conform to Appendix 2R;

(3) serve the motion and the notice on parties in interest not electronically served; and

(4) (A) file a supplemental disclosure of compensation in compliance with Bankr. D.S.D. R. 2016-1(b) if the withdrawing attorney, since the filing of his or her original disclosure of compensation, has rendered or has agreed to render additional services, or has received or has been promised additional payments; and

(1) Withdrawal while a contested matter or adversary proceeding is pending. If an attorney wishes to withdraw from further representation of a party other than a debtor or a trustee while a contested matter or adversary proceeding involving that party is pending, the withdrawing attorney shall file a motion seeking permission to withdraw and shall submit pursuant to Bankr. D.S.D. R. 9072-1(a) a proposed order granting the motion that conforms to Appendix 2S. The motion shall state whether the party has consented to the attorney's withdrawal. The withdrawing attorney shall serve the motion on parties in interest not electronically served. The Court may, in its discretion, grant the motion, set a deadline for responses to the motion, or set a hearing on the motion.

(2) Withdrawal while no contested matter or adversary proceeding is pending. If an attorney wishes to withdraw from further representation of a party other than a debtor or a trustee and no contested matter or adversary proceeding involving that party is pending, the withdrawing attorney shall file an electronic "Notice of Withdrawal as Attorney" and serve a copy of the docket text entry on parties in interest not electronically served.

(d) Substitution of attorney for a party other than a debtor or a trustee.

(1) Substitution of attorney for a party other than a debtor or a trustee while a contested matter or adversary proceeding is pending. If a party other than a debtor or a trustee wishes to substitute an attorney while a contested matter or adversary proceeding involving that party is pending, the party shall file a motion seeking court approval of the substitution and shall submit pursuant to Bankr. D.S.D. R. 9072-1(a) a proposed order granting the motion that conforms to Appendix 2Q. The party shall serve the motion on parties in interest not electronically served. The Court may, in its discretion, grant the motion, set a deadline for responses to the motion, or set a hearing on the motion.

(2) Substitution of attorney for a party other than a debtor or a trustee while no contested matter or adversary proceeding is pending. If a party other than a debtor or a trustee wishes to substitute an attorney and no contested matter or adversary proceeding involving that party is pending, the party's new attorney shall file a notice of appearance pursuant to Fed.R.Bankr.P. 2002(g)(1).

REFERENCES: 11 U.S.C. §§ 327 and 329(a); Fed.Rs.Bankr.P. 2002(g)(1), 2014(a), and 2016; S.D.C.L. § 16-18-31 and Rule 1.16(b), (c), and (d) of the South Dakota Rules of Professional Conduct (Appendix to S.D.C.L. ch. 16-18).

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