Local Rule 9019-1: SETTLEMENTS

RULE 9019-1 SETTLEMENTS

(a) General. This rule applies to all settlements including settlements between parties who are not case trustees. The parties should file a written notice of settlement not less than 3 business days before a related hearing. Unless good cause is shown, if the parties settle a matter less than 3 business days before a related hearing, the court may assess costs equally to the parties including, court costs, reporter costs, and the judge's travel costs and per diem, if any. The clerk must bill the parties for the assessed costs and monitor the collection of the costs for the court.

(b) Settlement of A Proceeding with An Evidentiary Hearing or Trial Date. In a contested matter or adversary proceeding for which an evidentiary hearing or trial date has been scheduled, the parties must immediately notify the court of any settlement agreement that resolves all or part of the proceeding. Parties who fail to give adequate notice of the cancellation of an evidentiary hearing or a trial date may be assessed costs. Whenever an action scheduled for jury trial is settled or otherwise disposed of by agreement in advance of the trial date, jury costs paid or incurred may be assessed against the parties and their attorneys as directed by the court. Jury costs may include attendance fees, per diem, mileage, and parking. Jury costs will not be assessed if notice of settlement or disposition of the case is given to the courtroom deputy at least one full business day prior to the scheduled trial date.

(c) Settlement of § 727 Adversary Proceeding. If a plaintiff seeks to settle an adversary proceeding that includes a claim for relief under one or more of the provisions of § 727(a), the motion to approve the settlement must be served on all parties in interest. If the proposed settlement includes dismissal of the complaint objecting to a debtor's discharge under § 727, the motion to approve the settlement must follow the requirements set forth in Local Rule 7041-1(a). Even in the absence of objections, the Court may require a hearing on the motion to determine that it is in the best interest of all creditors and otherwise complies with applicable law.