Local Rule RULE 2014-1: APPLICATION FOR EMPLOYMENT OF PROFESSIONAL PERSONS
Bankr. N.D.N.Y. — General rule
RULE 2014-1 APPLICATION FOR EMPLOYMENT OF PROFESSIONAL PERSONS
(a) Requirements of the Application and Affidavit. Except as set forth in paragraph (e), an order approving the employment of a professional, shall be sought by application and supporting affidavit.
(1) Application. A copy of any written retainer agreement, and of any written guaranty agreement, shall be submitted with and appended to the application. An order approving the employment of a professional person pursuant to § 327 shall be granted only on application by the trustee, debtor in possession or committee. The application shall fully disclose:
(A) The reason the professional should be hired;
(B) The professional terms and conditions of employment, including any arrangement for retainer;
(C) The professional services to be rendered;
(D) The source of any retainer;
(E) The hourly rates for professional and paraprofessionals;
(F) Any contingency fee arrangement; and
(G) All of the professional's connections with the debtor or any party in interest, including disclosure of the terms of any guaranty agreement with respect to payment of the professional's fee by a third party.
(2) Affidavit. The application shall be accompanied by an affidavit of the professional, setting forth any facts which might reasonably lead to the conclusion the professional may not be disinterested or may hold or represent an interest adverse to the debtor as defined in § 101(14).
(3) Order. A proposed order approving the employment shall be submitted with and appended to the application required by paragraph (a) as an exhibit.
(b) Notice to the United States Trustee. The application for employment shall be electronically filed with the Court. The United States trustee shall file a response, if any, within twenty-one days from the date application is filed. The application will be deemed ripe for the Court's consideration upon the earlier of (1) the filing of a response by the United States trustee, or (2) the expiration of the twenty-one day period. If an objection to the application or the proposed order approving the employment is filed, a hearing on the application will be set by the Clerk. If no action is taken by the United States trustee within the twenty-one day period, the Court, in its discretion, may schedule a hearing on the application or enter an order approving the employment.
(c) Order Approving Employment. An order approving the application shall be submitted to the Court upon the earlier of (1) the United States trustee's consent to the application, (2) the expiration of the twenty-one day period referenced in paragraph (b), if no objection is filed, or (3) the conclusion of a hearing on the application. The order shall clearly state, inter alia, that no fees will be paid to the professional, including the use of any retainer received for post-petition services, without prior approval of the Court.
(d) Auctioneers Pursuant to § 327(a). In addition to the requirements of subparagraph (a)(2), the auctioneer's affidavit shall:
(1) Attest that the auctioneer is duly licensed, and include the auctioneer's license number and business address;
(2) Attach a copy of the surety bond referred to in LBR 6005-1(b) intended to cover the assets of the estate; and
(3) Where a blanket bond has been approved by the United States trustee and is on file with the Court, attest whether the affiant has been appointed as auctioneer in any other case, including the case name and case number, and state whether the affiant has or will, within a reasonable period of time, come into possession of property of any other estate in which the affiant has been appointed auctioneer, together with a reasonable estimation of the value of all such property.
(e) Employment of an Attorney Pursuant to § 327(e). If the chapter 7 trustee seeks to employ an attorney to pursue the estate's interest in a claim previously held by the debtor, approval of the retention shall be sought by motion on notice pursuant to LBR 9013-3. In addition to service on the United States trustee, the motion shall be served upon the debtor and attorney for the debtor.
Comment The information required by this Rule shall be submitted at the same time as the information required by Fed. R. Bankr. P. 2014(a).
This Rule supplements Fed. R. Bankr. P. 6003.