Local Rule 2014–1: EMPLOYMENT OF PROFESSIONALS

2014–1 EMPLOYMENT OF PROFESSIONALS

(a) Application Required. A trustee, debtor in possession, or committee requesting employment of a professional person shall apply to the court for approval of such employment and any person employed shall be subject to the jurisdiction of the court for approval of all fees.

(b) Required Contents of Application. Any application for employment as a professional shall conform to the requirements of the Code and to Rule 2014 and shall further state:

(1) the professional's customary and proposed hourly rates of compensation or other proposed formula for determining compensation,

(2) the amount, date paid, and source of any fees paid to the applicant from a period of one (1) year prior to the filing of the petition through the time of application, and

(3) the amount, date paid, and source of any retainer sought or received by the professional within such period.

(c) Required Contents of Affidavit. An affidavit or verified statement of the person to be employed shall accompany the application for employment and in addition to the requirements set forth in Rule 2014, shall:

(1) set forth any known past or present relationship to the debtor, the trustee, or any creditor or equity security holder of the debtor. For every past or present relationship so disclosed the applicant shall provide a separate affidavit to the United States trustee stating the gross revenues received for the preceding twelve months from any such party when said gross revenues exceed one percent of the applicant's total gross revenues;

(2) establish the lack of any adverse interest to the estate; and

(3) establish that the proposed employment is not prohibited by or improper under Rule 5002.

(d) Appraisers, Auctioneers, Brokers and Real Estate Agents. The affidavit or verified statement of an appraiser, auctioneer, broker, or real estate agent shall contain, in addition to the information required by (c) above, the following:

(1) a statement that the appraiser, auctioneer, broker, or real estate agent is not an officer or employee of the Judicial Branch of the United States or the United States Department of Justice;

(2) a statement that gross proceeds of any sale conducted by the auctioneer or real estate agent will be immediately turned over to the trustee or debtor in possession, unless otherwise ordered by the court; and

(3) an acknowledgment that the appraiser, auctioneer, broker, or real estate agent will not under any circumstances, directly or indirectly, purchase or acquire any interest in any of the property to be appraised by or sold by that appraiser, auctioneer, broker, or real estate agent.

(e) Notice. An application by a chapter 7 trustee to employ himself or herself as attorney for the trustee and/or an application to employ the trustee's law firm as attorney for the trustee shall be served on the debtor, the debtor's attorney, any parties requesting notice, and the United States trustee. If the application is granted, the employment shall be effective as of the date the application was filed, unless otherwise ordered by the court.

(f) Supplemental Disclosure. Upon learning of any new or additional information required to be disclosed under Rule 2014 or this Local Rule (including but not limited to potential or actual conflicts of interest), any professional employed or to be employed shall promptly file and serve a supplemental affidavit setting forth the additional information.

(g) Optional Forms. Optional application and affidavit forms are available in the Forms section of these Local Rules.