Local Rule L. Rule 2014-1: EMPLOYMENT OF PROFESSIONAL PERSONS

L. Rule 2014-1. EMPLOYMENT OF PROFESSIONAL PERSONS.

(a) By Whom Application Made.

An application to approve the employment of a professional person shall be made and signed by the entity seeking to employ that person.

(b) Content of Application.

(1) In addition to the information required by FRBP 2014, the application must also contain the following:

(A) the date the petition was filed, the chapter under which the petition was filed, and (if applicable), the date the case was converted and the chapter under which the application is currently pending;

(B) the mailing address, telephone number, and email address of the professional person to be employed; and

(C) a disclosure of other persons in the same profession who are already or will be employed by the applicant, and an explanation of the reason an additional professional is required.

(2) With the exception of an application by a chapter 7 trustee for the employment of (a) an accountant on a flat-fee basis or (b) an auctioneer of personal property with a cumulative, scheduled value of less than $50,000.00, on a percentage-fee basis, an application to employ any professional under 11 U.S.C. §§ 327, 1103, or 1114 shall include a copy of the contract setting forth the terms of compensation. All applications for such employment shall include the FRBP 2016(b) disclosure of compensation. The Court recommends that any proposed form of order granting an application to employ include language stating that settlement funds shall not be disbursed without prior court approval.

(3) In regards to an application by a chapter 7 trustee for the employment of an accountant on a flat fee basis for the preparation of yearly tax returns for the bankruptcy estate, the trustee needs only to file one application for the accountant's employment as long as (a) all future tax returns will be prepared by the accountant for the same flat fee rate; and (b) the trustee includes a provision in the proposed order that requires that a notice of disbursement be filed for each payment made by the chapter 7 trustee to the accountant within 30 days of each payment.

(c) Time of Filing Application.

An application filed within 30 days after the professional's commencing services is deemed contemporaneous. Any later application is deemed not contemporaneous and may be granted only for cause shown, and after notice and an opportunity for hearing, and shall be effective as of the date the application was filed, unless the Court orders otherwise.

(d) Procedure.

An application to employ a professional person is a contested matter. The application or a summary of the application in the form of Appendix L-2014-1 must be served on entities pursuant to L. Rule 9013-1. The application may be granted by the Court without a hearing. A party in interest who opposes an application for employment may file an objection within 21 days after the date of service of the application summary, and such objection shall be set for hearing notwithstanding the Court's order granting the application to employ.