Draft of Proposed Local Rules Available for Comment (Click here for Draft)
The United States Bankruptcy Court for the Northern District of Alabama hereby publishes the attached draft of proposed Local Rules for comment. The comment period shall end on Friday, April 25, 2008. All comments must be written and forwarded to the Clerk of Court by U. S. mail or via electronic mail. Via U. S. Mail: United States Bankruptcy Court, Northern District of Alabama, Clerk of Court, Attention: Ms. Susan Archer, 1800 5th Avenue North, Birmingham, AL 35203 or via email: Susan_Archer@alnb.uscourts.gov.

RULE 1001-1 PURPOSE AND SCOPE OF RULES

RULE 1007-1 PETITION, SCHEDULE OF CREDITORS AND MATRIX

RULE 1014-1 INTERDIVISION TRANSFER

RULE 1017-2 NONPAYMENT OF FEES

RULE 1020-1 SMALL BUSINESS CHAPTER 11 REORGANIZATION CASES

RULE 1070-1 DIVISIONS OF THE COURT

RULE 1073-1 ASSIGNMENT OF CASES

RULE 2007.1-2 ELECTION OF TRUSTEE IN A CHAPTER 11 REORGANIZATION CASE

RULE 2016-1 COMPENSATION FOR SERVICES RENDERED

RULES 2090-2 and 2091-1 ATTORNEYS - ADMISSION TO PRACTICE AND DISCIPLINE

RULE 3007-1 OBJECTIONS TO CLAIMS

RULE 3015-1 CHAPTER 13 AND 12 PLAN AND OBJECTIONS TO CONFIRMATION OR MODIFICATION OF PLAN AFTER CONFIRMATION

RULE 3020-1 OBJECTIONS TO CONFIRMATION OF CASES FILED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE

RULE 4001-1 RELIEF FROM AUTOMATIC STAY

RULE 4001-2 CHAPTER 11 STANDARD AGREED CASH COLLATERAL ORDER UNDER 11 U.S.C. §363(c)(2)(A) AND RULE 4001(d) OF THE BANKRUPTCY RULES

RULE 4002-1 STATEMENT OF INFORMATION

RULE 4003-2 MOTIONS TO AVOID NONPOSSESSORY LIENS UNDER 11 U.S.C. §522(f)(2) OR TO AVOID JUDICIAL LIENS UNDER 11 U.S.C. §522(f)(1)

RULE 4072-1 CREDITOR CONTACT WITH CHAPTER 13 DEBTOR

RULE 5003-2 REMOVAL OF COURT FILES AND EXHIBITS

RULE 5005-1 FILING OF PAPERS AND REQUESTS FOR INFORMATION

RULE 5005-2 NUMBER OF COPIES

RULE 5005-4 FILING PAPERS WITH CLERK VIA FACSIMILE

RULE 5073-1 BROADCASTING, PHOTOGRAPHS, TELEPHONES AND PAGERS

RULE 5081-1 PAYMENT OF FEES AND OTHER CHARGES

RULE 5092-1 SEAL OF COURT

RULE 7003-1 ADVERSARY PROCEEDING COVER SHEET

RULE 7005-2 FILING OF DISCOVERY MATERIALS

RULE 7026-1 DISCLOSURE, DISCOVERY LIMITATIONS, COMMENCEMENT OF DISCOVERY AND MEETING OF PARTIES

RULE 7069-1 PAYMENT OF JUDGMENTS

RULE 9010-2 POWERS OF ATTORNEY

RULE 9015-1 JUROR INTERROGATION

RULE 9015-2 JURY TRIALS

RULE 9019-2 ALTERNATIVE DISPUTE RESOLUTION

RULE 9070-1 WITHDRAWAL OF EXHIBITS AFTER FINAL DISPOSITION OF MATTER

APPENDIX A RULE AUTHORIZING BANKRUTPCY JUDGES TO PROMULGATE LOCAL BANKRUPTCY RULES

APPENDIX B APPLICATION FOR COMPENSATION AND EXPENSES COVER SHEET

APPENDIX C APPLICATION FOR COMPENSATION AND EXPENSES PROJECT SUMMARIES

APPENDIX D SUMMARY OF EXPENSES

APPENDIX E CHAPTER 13 PLAN (fillable)

APPENDIX F EMERGENCY ORDER SECTION 363(c)(2)(A) APPROVING AGREEMENT TO USE CASH COLLATERAL BY CONSENT

APPENDIX G STATEMENT OF INFORMATION

APPENDIX H MOTION TO AVOID LIEN

APPENDIX I COURT SEAL

APPENDIX J OBJECTION TO DUPLICATE CLAIM

APPENDIX K ORDER ON OBJECTION TO DUPLICATE CLAIM

SELECTED COURT MEMORANDA, ADMINSTRATIVE ORDERS AND GENERAL ORDERS

I. RULES OF GENERAL APPLICABILITY

RULE 1001-1 PURPOSE AND SCOPE OF RULES

Pursuant to 28 U.S.C. §2075, the Supreme Court of the United States has prescribed rules of procedure in bankruptcy cases to be known as the Federal Rules of Bankruptcy Procedure (Bankruptcy Rules). The Bankruptcy Rules govern the practice and procedure in cases under Title 11 of the United States Code (Bankruptcy Code).

Rule 9029 of the Bankruptcy Rules authorizes the district court to authorize the bankruptcy judges of the district to make rules of practice and procedure which are not inconsistent with the Bankruptcy Rules and which do not prohibit or limit the use of official forms. Pursuant to such authorization, the District Court of the Northern District of Alabama on December 23, 1989, entered an order so authorizing the Bankruptcy Judges of the Northern District of Alabama to make and promulgate local rules of practice and procedure. A copy of such December 23, 1989, order is attached as Appendix A.

The local rules of bankruptcy procedure for the United States Bankruptcy Court for the Northern District of Alabama (Local Bankruptcy Rules) are hereby prescribed and promulgated as local rules governing the practice and procedure of each division of the Northern District of Alabama not inconsistent with the aforementioned Bankruptcy Rules.

These rules govern the administration and operations of the Bankruptcy Court for the Northern District of Alabama on and after March 1, 1997, and shall govern the practice and procedure in all cases under the Bankruptcy Code, all civil proceedings arising under the Bankruptcy Code, and all civil proceedings arising in or related to cases under the Bankruptcy Code filed on or after March 1, 1997, including cases transferred from another district, while such cases and proceedings are pending in the United States Bankruptcy Court for the Northern District of Alabama.

Local rules previously adopted regarding the practice and procedure in bankruptcy cases for the Northern District of Alabama shall not apply to or in any case filed on or after March 1, 1997, or to any proceeding in or related to such case or arising under the Bankruptcy Code.

Unless otherwise stated herein, the definitions contained in 11 U.S.C. §101 and the rules of construction contained in 11 U.S.C. §102 are applicable throughout these Local Bankruptcy Rules. The Federal Rules of Bankruptcy Procedure shall herein be referred to as the "Bankruptcy Rules." These local rules of bankruptcy procedure shall herein be referred to as the "Local Bankruptcy Rules." The local rules of procedure adopted by the District Court for the Northern District of Alabama shall herein be referred to as the "Local District Rules." Title 11 of the United States Code shall herein be referred to as the "Bankruptcy Code." The "Clerk" shall refer herein to the Clerk of the United States Bankruptcy Court or to such other person as the Clerk may designate. "The Court" shall refer to the United States Bankruptcy Court for the Northern District of Alabama. All references to the "Bankruptcy Administrator" shall refer to the Bankruptcy Administrator for the Northern District of Alabama or to such other person or persons designated by the Bankruptcy Administrator for the Northern District of Alabama. All references to the "Standing Chapter 13 Trustee" shall be to the trustee appointed to serve in the Chapter 13 case at issue.

UNLESS OTHERWISE PROVIDED HEREIN OR UNDER OTHER APPLICABLE LAW, SERVICE ON ANY PARTY SHALL BE MADE BY SERVICE UPON THAT PARTY'S ATTORNEY OF RECORD, IF ANY, EXCEPT SERVICE REQUIRED BY RULE 7004 OF THE BANKRUPTCY RULES.

RULE 1007-1 PETITION, SCHEDULE OF CREDITORS AND MATRIX

(a) Debtor's Residential Mailing Address and County of Residence. The address of the debtor's residence (if different from the debtor's stated mailing address) and the name of the county of the debtor's residence shall be stated in that portion of Official Form 1, for a Voluntary Petition, or in that portion of Official Form 5, for an Involuntary Petition, which initiates a case under the Bankruptcy Code.

(b) Schedule of Creditors. In Schedules D, E, and F, the names of creditors listed shall be listed alphabetically. The date the liability was incurred and the account or credit card numbers for each liability scheduled shall also be included unless not ascertainable.

(c) Matrix. Any petition which initiates a case under the Bankruptcy Code shall be accompanied, when presented for filing, by a separate matrix or list with the names and last known address of the debtor, the debtor's attorney, and the creditors of the debtor typed thereon (including full zip codes) in a minimum typeface of 10 points and in the same alphabetical order as set out in Schedules D, E, and F and in suitable form for either the preparation of gummed address labels for required mailings to creditors (through the use of an electrostatic or similar copying machine) or for entry or importation into the Court's database by the Clerk. Attorneys for debtors are strongly encouraged by the Court to file with their petitions and schedules diskettes compatible with the Court's system which contain the matrix and which can be used for importing the matrix into the Court's database. The matrix is specifically made a part of the schedules. If three (3) or fewer creditors are added by amendment, the Clerk shall add the amended creditors to the matrix. If more than three (3) creditors are added by amendment, the debtor shall file with the Clerk an amended matrix adding the amended creditors. Nevertheless, the debtor has the ultimate responsibility to correctly list all creditors and correctly maintain the matrix.

RULE 1014-1 INTERDIVISION TRANSFER

Transfer between divisions when requested by the debtor or a party in interest shall be governed by the same principles as govern transfers between districts as set out in Rule 1014 of the Bankruptcy Rules, except as otherwise provided in Local Bankruptcy Rule 1073-1.

RULE 1017-2 NONPAYMENT OF FEES

(a) In the event of the nonpayment of a required fee (including filing fee, notice fee, or conversion fee) or part thereof except as hereinafter provided in subparagraph (b), the Clerk shall mail a notice to the debtor and the debtor's attorney, if any, of such default in payment and a statement that the case may be dismissed if the fee or balance is not paid within fifteen (15) days of the date of the mailing of notice. Such notice shall contain a statement that the debtor may have a hearing upon such matter if a written request therefor is filed with the Clerk not more than ten (10) days after the mailing of the notice. The notice shall bear the date of its mailing. The filing of a request for a hearing shall suspend the dismissal of the case pending the outcome of the hearing.

(b) In the event of the nonpayment of a required fee for the filing of a motion for relief from stay or an adversary proceeding, the Court may without notice dismiss the motion or the adversary proceeding.

RULE 1020-1 SMALL BUSINESS CHAPTER 11 REORGANIZATION CASES

(a) Election to be Considered a Small Business in a Chapter 11 Reorganization Case. In a case under Chapter 11 of the Bankruptcy Code, a debtor that qualifies as a "small business" as that term is defined in 11 U.S.C. §101(51C) may elect to be considered a small business by filing a written statement of election no later than sixty (60) days after the date of the entry of the order for relief or by a later date as the Court, for cause, may fix.

(b) Approval of Disclosure Statement.

(1) Conditional Approval. If the debtor is a small business and has made a timely election to be considered as a small business in a case filed under Chapter 11 of the Bankruptcy Code, the Court may, on application of the plan proponent, conditionally approve a disclosure statement filed in accordance with Rule 3016 of the Bankruptcy Rules. On or before conditional approval of the disclosure statement, the Court shall: (A) fix a time within which the holders of claims and interests may accept or reject the plan; (B) fix a time within which objections to the disclosure statement shall be filed; (C) fix a date for the hearing on the final approval of the disclosure statement to be held if a timely objection is filed; and (D) fix a date for the hearing on confirmation of the plan.

(2) Application of Rule 3017 of the Bankruptcy Rules. If the disclosure statement is conditionally approved, Rule 3017(a), (b), (c), and (e) of the Bankruptcy Rules do not apply. Conditional approval of the disclosure statement is considered approval of the disclosure statement for the purpose of the application of Rule 3017(d) of the Bankruptcy Rules.

(3) Objections and Hearing on Final Approval. Notice of the time fixed for filing objections and of the hearing to consider final approval of the disclosure statement shall be given in accordance with Rule 2002 of the Bankruptcy Rules and may be combined with notice of the hearing on confirmation of the plan. Objections to the disclosure statement shall be filed at any time before final approval of the disclosure statement or by an earlier date as the Court may fix, and shall be served on (A) the debtor, (B) the trustee, (C) any committee appointed under the Bankruptcy Code, (D) the Bankruptcy Administrator and (E) any other entities designated by the Court. If a timely objection to the disclosure statement is filed, the Court shall hold a hearing to consider final approval either before the hearing on confirmation of the plan or combined therewith.

RULE 1070-1 DIVISIONS OF THE COURT

The District shall be divided into four Divisions to be known as the Eastern, Northern, Southern, and Western, as follows:

(1) The Eastern Division shall consist of the following counties: Calhoun, Clay, Cleburne, Saint Clair, Talladega, Cherokee, DeKalb, Etowah, and Marshall. The Eastern Division Office of the Bankruptcy Court shall be located at Anniston, Alabama.

(2) The Northern Division shall consist of the following counties: Colbert, Cullman, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Morgan, and Northern Winston. The Northern Division Office of the Bankruptcy Court shall be located at Decatur, Alabama.

(3) The Southern Division shall consist of the following counties: Blount, Jefferson, and Shelby. The Southern Division Office of the Bankruptcy Court shall be located at Birmingham, Alabama.

(4) The Western Division shall consist of the following counties: Bibb, Fayette, Greene, Lamar, Marion, Pickens, Sumter, Tuscaloosa, Walker, and Southern Winston. The Western Division office of the Bankruptcy Court shall be located at Tuscaloosa, Alabama.

RULE 1073-1 ASSIGNMENT OF CASES

(a) Division Assignment. In accordance with 28 U.S.C. §1408, the county in which the domicile, residence, principal place of business, or principal assets of the person or entity that is the subject of the case have been located for the one-hundred-eighty (180) days immediately preceding the commencement of the bankruptcy case, or for a longer portion of such one-hundred-eighty day (180) day period than the residence or principal place of business of such person or entity was located in any other division; or in which there is pending a case under title 11 concerning such person's or entity's affiliate, general partner, or partnership shall be used to determine assignment of cases according to the geographic divisions within the district as defined in Rule 1070-1 of the Local Bankruptcy Rules.

(b) Assignment of Cases Filed in Another Division. Any bankruptcy division office of this district may accept for filing, on behalf of any other bankruptcy division office of this district, an original petition and accompanying documents under any chapter of the Bankruptcy Code. Upon such filing, the division office where the petition is accepted for filing shall immediately obtain, by telephone, a docket number for the new petition from the division office to which said case was assigned. That docket number shall be written on the new petition and all other documents filed with it. As soon as possible, the documents shall be forwarded to the division office for the division to which said case has been assigned.

RULE 2007.1-2 ELECTION OF TRUSTEE IN A CHAPTER 11 REORGANIZATION CASE

(a) Appointment of Trustee Pursuant to 11 U.S.C. §1104. If the Court orders the appointment of a trustee under 11 U.S.C. §1104(a) in a case filed under Chapter 11 of the Bankruptcy Code, pursuant to 11 U.S.C. §1104(b), a party in interest may request that a meeting of creditors be convened for the purpose of electing a trustee. Any such request shall be filed and served on the Bankruptcy Administrator and the debtor in possession in accordance with Rules 5005 and 9035 of the Bankruptcy Rules within thirty (30) days after the Court orders the appointment of a trustee as required by 11 U.S.C. §1104(b) or within any other time prescribed by 11 U.S.C. §1163 where that section is applicable. Upon the entry of the order to appoint a trustee, whether or not a request for an election is timely filed, the Bankruptcy Administrator shall promptly file a report with the Court recommending a disinterested person to be appointed by the Court to serve as trustee pursuant to 11 U.S.C. §1104(d). If an election of a trustee has been timely requested, the person so appointed by the Court shall serve as trustee until an election is held, all disputes regarding the election are resolved, and the person elected as trustee is appointed by the Court upon the report of the Bankruptcy Administrator.

(b) Manner of Election and Notice. An election of a trustee under 11 U.S.C. §1104(b) shall be conducted in the manner provided in Rules 2003(b)(3) of the Bankruptcy Rules. Notice of the meeting of creditors convened under 11 U.S.C. §1104(b) shall be given in the manner and within the time provided for notices under Rule 2002(a) of the Bankruptcy Rules.

(c) Application for Approval of Appointment and Resolution of Disputes. Following the election, the Bankruptcy Administrator shall promptly file a report informing the Court of the outcome and of any dispute concerning the election or its result of which he is aware. The Bankruptcy Administrator shall serve said report on the debtor-in-possession, the trustee previously appointed by the Court under 11 U.S.C. §1104(d), the person elected as trustee or any person for whom votes were cast at the election held, and any party disputing the election or its results. Any party, including the Bankruptcy Administrator, may file a motion to resolve a dispute concerning the election or its results within ten (10) days after the date of the meeting called under 11 U.S.C. §1104(b). If no dispute arises or if no motion to resolve a dispute is timely filed, the Bankruptcy Administrator shall promptly file a report with the Court recommending the person who was elected as trustee be appointed by the Court to serve as trustee pursuant to 11 U.S.C. §1104(d). If a motion for the resolution of a dispute is filed within the time allowed, said motion will be resolved by the Court.

RULE 2016-1 COMPENSATION FOR SERVICES RENDERED

(a) All applications made pursuant to 11 U.S.C. §§330 and 331 for compensation for professional services rendered with the exception of applications from trustees seeking compensation as limited by 11 U.S.C. §326 shall comply with the provisions of this Local Bankruptcy Rule.

(b) Application Cover Sheet. Each application shall begin with an Application Cover Sheet. Transmittal letters should not be attached to the application. Each cover sheet shall include:

(1) The name of applicant.

(2) The date the application for employment was filed.

(3) The date of the order authorizing employment and the authorized terms and conditions of employment, if any.

(4) To whom the services were provided.

(5) The period for which compensation is sought.

(6) The amount of fees and expenses sought.

(7) A designation of whether the application is an interim application or final application.

(8) If not the first application filed in the case by the applicant, a disclosure of the dates, periods, fees and expenses allowed for each of the prior applications.

(9) The aggregate amount of fees and expenses allowed to date.

(10) The aggregate amount of fees and expenses paid to date.

The form contained in Appendix B is an acceptable form for cover sheets.

(c) Narrative Summary. Each application with the exception of interim applications for an amount less than $25,000.00 or final applications for compensation where the cumulative total of compensation sought in the final application and in any interim applications is less than $25,000.00 shall include a Narrative Summary which should include:

(1) The date of employment.

(2) Conditions of employment.

(3) A summary of fees requested which should explain the general nature of the work performed.

(4) A statement whether the application is the first, second, or other.

(5) An explanation of the period of time covered by the application.

(6) The amount of fees and expenses requested in the present application.

(7) A recitation of the fees previously awarded or otherwise received, such as a retainer, during the course of or in connection with the case.

(8) A description of the persons who performed the services for which compensation is sought including for each:

(A) Name.

(B) Position within the organization such as partner, associate, paralegal, legal assistant, or law clerk.

(C) Hourly rate at which each customarily bills time.

(D) The total hours worked by the individual during the time frame covered by the application.

(E) The portion of the total fee requested which is attributable to the work performed by the individual.

(F) The qualifications and experience of each individual who performed work for which compensation is requested, especially the extent of all bankruptcy experience or other specialized experience actually utilized during the course of the individual's employment in the case.

(G) A statement of prevailing market rates in the relevant professional community for similar services performed by professionals whose skills, experience and reputation reasonably compare to the individuals who performed the services for which compensation is requested as well as a statement of the cost in the community of comparable services in non-bankruptcy cases. If the rates or costs are challenged, the applicant shall provide admissible evidence at a hearing.

(9) A discussion of the 12 factors first enunciated in Johnson v. Georgia Highway Express, Inc., 488 F.2d 714, 717-719 (5th Cir. 1974), a civil rights case, and made applicable to fee determinations in bankruptcy in In re First Colonial Corp. of America, 544 F.2d 1291, 1298-99 (5th Cir. 1977).

(d) Project Summaries. Each application with the exception of interim applications for an amount less than $25,000.00 or final applications for compensation where the cumulative total of compensation sought in the final application and in any interim applications is less than $25,000.00 shall include a summary for each project within the case. Each summary should include:

(1) A title for each project.

(2) The general nature of the project and circumstances involved.

(3) The amount of the requested fee that is attributable to the project.

(4) The amount of time attributable to the project.

(5) The objective of the project, such as what the applicant had originally hoped (or hopes if the project is not complete) to accomplish as a result of the effort consumed by the project.

(6) Any particular problems or difficulties encountered.

(7) The disposition (or expected disposition) of the project including what was actually accomplished as a result of the effort put into the project.

The form contained in Appendix C is an acceptable form for project summaries.

(e) Summary of Expenses. Each application with the exception of interim applications for an amount less than $25,000.00 or final applications for compensation where the cumulative total of compensation sought in the final application and in any interim applications is less than $25,000.00 shall include a Summary of Expenses. That summary should include:

(1) Expense items grouped by category.

(2) The total charges for each category.

(3) A brief explanation of the necessity for the expense category and an explanation of the method of calculation of the total for each category. The form in Appendix D is an acceptable form for expense summaries.

(f) Actual Chronological Time Entries. Copies of billing records incorporating contemporaneously generated time entries shall be attached to the application. All time entries should particularly describe the task they explain. Each entry should not only indicate what type of work was done, such as a telephone call, research, conference, document drafting, attendance at a hearing or a deposition, but should also include the date the work was done, the time spent performing the work, the person who performed the work, the subject matter of the work, and, if not readily apparent, the benefit to the estate resulting from the work or the relevance of the work to the administration of the estate. For example:

(1) Telephone Conversations. When describing a telephone conversation, the applicant should name all participants to the conversation and the date and subject matter of the conversation.

(2) Drafting and Reviewing Documents. Entries for drafting and reviewing documents should specify the documents involved and the matters to which they pertain.

(3) Court Appearances and Depositions. Entries for appearing in court and at depositions should indicate the nature of the hearing attended or name of the person deposed and the project to which the hearing or deposition related. If more than one applicant from the same organization participated in the hearing or deposition, and that applicant also requests a fee because of that participation, the application should clearly indicate why the participation of both applicants was necessary.

(4) Conferences. When describing conferences or meetings, the applicant should name all participants as well as noting the subject matter and purpose of the conference or meeting. If more than one applicant from the same organization participated in the conference or meeting, and that applicant also requests a fee because of that participation, the application should clearly indicate why the participation of both applicants was necessary.

(5) Research. Time entries for research should note the subject matter of the research and the use of the material.

(g) Actual Expense Items Grouped By Category. All expense items shall be itemized with the nature of and the necessity of each expense explained. All items should be grouped by category. Category names should agree with the summary category names in subsection (d) of this Rule. Grand total amounts for all line item expenses in a particular category should agree with the summary category amounts in the expense summary. Each Expense itemization should contain:

(1) The date of the expense.

(2) The expense item.

(3) The specific matter to which the expense relates, excluding de minimis photocopies or de minimis postage.

(4) The justification for the expense if not readily apparent.

(5) The amount claimed.

(6) An explanation of the expense if it is unusual in type or amount.

(h) Minimum Time Blocks. When preparing the application the applicant should consider that 11 U.S.C. §330(a) authorizes compensation for services only to the extent the services are actually performed. The use of minimum time blocks to report services, although seemingly innocuous, may frustrate 11 U.S.C. §330(a) and should be avoided. The use of minimum time blocks of .1 hours is acceptable, however, considering that less would be impractical.

(i) Lumping. Applications shall separately indicate time for performing each discrete task. Grouping tasks in a single description with one total time allotment is known as lumping and does not comply with Rule 2016(a) of the Bankruptcy Rules. The primary problem with lumping is that it precludes the Court from determining the exact time spent performing a single task and prevents the Court from assessing the reasonableness of the time spent or compensation requested for performing the task. The Court may be unable to segregate compensable services from noncompensable services or be unable to identify services which the applicant would otherwise be paid if properly described.

(j) Statements in Accordance with 11 U.S.C. §504 and Rule 2016 of the Bankruptcy Rules. The applicant shall provide the statements required by 11 U.S.C. §504 and Rule 2016 of the Bankruptcy Rules.

(k) Verification. The application shall contain a verified statement that the information contained in the application is true.

(l) Bankruptcy Administrator. In addition to any other review of fee applications the Bankruptcy Administrator is required to perform, the Bankruptcy Administrator shall review every application and report to the Court whether there is compliance with this Local Rule.

(m) Filing and Service. Each applicant filing an application in accordance with this Rule shall file the original plus one (1) copy labeled "Courtesy Copy" which shall be provided to the judge assigned to the case. At the time of filing, a copy of each application shall be served on (1) the Bankruptcy Administrator, (2) the debtor, (3) the trustee, (4) and any committee appointed in the case. Each applicant shall certify that such service has been made.

(n) Effective Date. This rule shall apply only in cases filed on or after March 1, 1997.

RULES 2090-2 and 2091-1 ATTORNEYS - ADMISSION TO PRACTICE AND DISCIPLINE

All attorneys practicing in the United States Bankruptcy Courts for the Northern District of Alabama shall be admitted to the United States District Court for the Northern District of Alabama. The applicable provisions of the Local District Rules are thus hereby adopted in their entirety and are fully set forth below. References in this rule to "this court" are to the District Court. References in this rule to "the clerk" are to the clerk for the District Court.

(a) Bar of Court. The bar of this court consists of those persons previously and hereafter admitted to (and not removed from) the bar of the United States District Court for the Northern District of Alabama.

(1) Any attorney who is admitted to practice before the Supreme Court of Alabama and who resides in Alabama or regularly engages in the practice of law in Alabama may be admitted to the bar of this court upon the submission of an application, payment of the prescribed fee, and

(A) the order of a judge of this court (on oral or written motion by a member of the bar of this court or on the court's own motion), and the administering of the prescribed oath before any judge (or other designee) of this court; or

(B) the filing of a certificate of good standing from the Clerk of the United States District Court located within the State of Alabama for the district in which the applicant resides or regularly practices law.

(2) By January 1, 1992 (and annually thereafter by the 1st day of January of each succeeding year), all attorneys whose status as members of the bar of this court shall not have been renewed during the preceding five years shall submit to the Clerk a statement respecting their eligibility to remain as members of the bar in good standing, together with the renewal fee within 60 days from the date due shall cease to be members in good standing until such statement and renewal fee are submitted.

(b) Appearance Pro Hac Vice. Any attorney who is not a member of the bar of this court but who is admitted to practice before the United States District Court for the district in which (or before the highest court in the state in which) such person resides or regularly practices law, may, upon request and payment of the prescribed fee (unless payment is waived by special order of the court), be allowed to appear in a case pro hac vice by an order of any district judge or bankruptcy judge of this court. Any such attorney who appears as counsel by filing any pleading or paper in any case pending in this court shall within ten days thereafter apply to appear pro hac vice as set out herein. An attorney permitted to appear under this subsection is deemed to have conferred disciplinary jurisdiction upon this court for any alleged misconduct arising in the course of, or in preparation for, proceedings in the case; and for purposes of subsection (h) of this Rule the attorney shall be treated as if a member of the bar of the court with respect to acts and conduct in connection with such case.

(c) Appearance on Behalf of United States. Any attorney representing the United States or any agency thereof, having the authority of the government to appear as its counsel, may appear specially and be heard in any case in which the government or such agency is a party, without formal or general admission. An attorney permitted to appear under this subsection is deemed to have conferred disciplinary jurisdiction upon this court for any alleged misconduct arising in the course of, or in preparation for, proceedings in the case, and for purposes of subsection (h) of this Rule the attorney shall be treated as if a member of the bar of this court with respect to acts and conduct in connection with such case.

(d) By Whom Parties May Appear. In all cases in or removed to this court, a party may appear and be represented of record only by a member of the bar of this court, by an attorney permitted to appear pursuant to subsection (b) or (c) of this Rule, of, if an individual, by himself or herself pro se.

(e) Continuing Representation. Unless disbarred or suspended, attorneys shall be held at all times to represent the parties for whom they appear of record in the first instance until, after formal motion and notice to such parties and to opposing counsel, they are permitted by order of court to withdraw from such representation. The court may, however, without formal motion and notice, permit withdrawal for good cause shown or if other counsel have entered an appearance for the party.

(f) Standards for Professional Conduct; Obligations. Each attorney who is admitted to the bar of this court or who appears in this court pursuant to subsection (b) or (c) of this Rule is required to be familiar with, and shall be governed by, the Local Rules of this court and, to the extent not inconsistent with the preceding, the Alabama Rules of Professional Conduct adopted by the Alabama Supreme Court and, to the extent not inconsistent with the preceding, the American Bar Association Model Rule of Professional Conduct, except Rule 3.8(f) thereof. Acts and omissions by any such attorney which violate such standards, individually or in concert with any other person, shall constitute misconduct, whether or not occurring in the course of an attorney-client relationship, and shall be grounds for discipline, as shall the commission by an attorney of any serious crime. Discipline under this Rule may consist of disbarment, suspension, censure, reprimand, removal from a particular case, ineligibility for appointment as court-appointed counsel, ineligibility to appear under subsections (b) and (c), monetary sanctions, or any other sanction the court may deem appropriate.

Any attorney admitted to the bar of this court, or who appears in this court pursuant to subsection (b) or (c) of this Rule, shall promptly notify the Clerk of this court upon (i) being disbarred, suspended, or publicly disciplined by another court or disciplinary authority, (ii) resigning from another bar while an investigation into allegations of misconduct is pending, or (iii) being convicted by any court of any serious crime.

(g) Grievance Committee. The court shall from time to time appoint members of the bar of the court to its "Grievance Committee." The court shall designate one of the members to serve as Chairman. Any three or more members of the committee may act on behalf of the committee when so designated by the Chairman.

(1) Purpose and Function. The purpose and function of the Grievance Committee is to conduct, upon referral by the court or a judge thereof, inquiries and investigations with respect to alleged misconduct or commission of a serious crime by an attorney or with respect to reinstatement of an attorney; to conduct and preside over disciplinary hearings; to consider, upon referral by the court or a judge thereof, matters relating to possible incompetency, incapacity, or impairment of an attorney; and to submit written findings and recommendations to the court or referring judge for appropriate action. The Committee shall not initiate an investigation or conduct hearings without prior referral by the court or a judge thereof.

(2) Powers of Committee. In addition to powers described elsewhere in this Rule, the Grievance Committee shall be vested with such powers as are necessary to conduct the proper and expeditious disposition of any matter referred to it, including the power to compel the attendance of witnesses, to take or cause to be taken the deposition of any witnesses, and to order the production of books, records, or other documentary evidence. The Chairman or, in the Chairman's absence, any member of the Committee has the power to administer oaths and affirmations to witnesses, which oath or affirmation shall include the obligation not to disclose the existence of the proceedings or the identity of the attorney involved unless such proceedings are authorized by the court to be made public.

(3) Special Counsel. The Grievance Committee may request the court to appoint special counsel to investigate or assist in any investigation or in the conduct of any hearing authorized under this Rule.

(4) Immunities. The members of the Grievance Committee and any person acting as special counsel for the Committee under paragraph (3) shall, with respect to their actions in such capacities, be considered as representatives of, and acting under the powers and immunities of, the court and shall enjoy all such immunities while acting in good faith and in their official capacities.

(5) Confidentiality. All complaints, referrals, orders, and proceedings before, and reports, of the Grievance Committee shall be confidential except as provided in this Rule or until otherwise directed by the court.

(h) (1) Misconduct. The court or a judge thereof may refer to the Grievance Committee any accusation or evidence of misconduct by a member of the bar of this court for such investigation, hearing and report as may be appropriate.

(A) Any matter referred to the Committee may, in its discretion, be further referred by it to an appropriate committee or official of the Alabama State Bar either for preliminary investigation or for conduct of such proceedings as may be appropriate.

(B) If after its preliminary investigation and review the Committee concludes that a formal disciplinary proceeding should not be initiated against an attorney because of the insufficiency of evidence, because of the insubstantial nature of the conduct involved, because of the pendency of another proceeding against the attorney the disposition of which should be awaited before further action is considered, because of other disciplinary or corrective action already taken, or for any other valid reason, the Committee shall file with the court a recommendation for disposition of the matter, whether by dismissal, deferral or other action, setting forth the reasons therefor. If the matter is dismissed or deferred, the attorney who is the subject of the investigation need not be notified that a complaint has been submitted or of its ultimate disposition.

(C) If from its preliminary investigation the Committee concludes that a formal proceeding should be initiated, the Committee shall file with the court a written report of its investigation, together with a proposed order for entry by a judge of the court setting forth the particular conduct on the basis of which the attorney is believed to be subject to discipline and requiring the attorney to show cause to the Committee in writing within 20 days after service of that order why he or she should not be disciplined. A copy of the report shall be served on the attorney along with the show cause order. If requested by the attorney in a timely response, the matter shall, upon at least 10 days' notice, be set for hearing before the Committee, at which time the attorney shall have the right to be present at the taking of testimony, to present witnesses and other evidence, to cross examine witnesses, and to be represented by counsel. All testimony presented before the Committee shall be transcribed, and the accused attorney shall be entitled to a copy thereof at his or her own cost. Proceedings before the Committee shall be guided by the spirit of the Federal Rules of Evidence, but the Committee may receive and consider hearsay evidence that it finds to be reliable and trustworthy. Unless the attorney asserts a privilege or right properly available under applicable federal or state law, the attorney may be called as a witness by the Committee to make specific and complete disclosure of all matters material to the charge of misconduct. If the attorney does not respond to the show cause order, does not timely request a hearing, or agrees to the matters asserted, the Committee may take summary action, reporting its recommendations forthwith to the court.

(D) Upon completion of a disciplinary proceeding the Committee shall make a full written report to the court, containing its findings of fact as to the charges, its recommendations as to whether or not the attorney should be found guilty of misconduct justifying disciplinary action, and its recommendations as to any disciplinary measures that should be imposed by the court. The report shall be accompanied by a transcript of any proceedings before the Committee, all pleadings, and all evidentiary exhibits. A copy of the report shall also be furnished to the attorney.

(E) Upon receiving a report by the committee finding that misconduct occurred and recommending disciplinary action, the court shall issue an order requiring the attorney to show cause in writing why the Committee's recommendation should not be adopted by the court. After considering the attorney's response, the court, by a majority vote of the active judges thereof, may adopt, modify, or reject the Committee's findings with respect to misconduct, and may impose the sanctions recommended by the Committee or other penalties deemed appropriate under the circumstances.

(F) In lieu of, or in addition to, referring a matter involving possible misconduct to the Grievance Committee, the court or a judge thereof may refer such matter to any other court or to any professional disciplinary agency for such investigation and action as that court or agency may deem appropriate.

(2) Commission of Serious Crime.

(A) If a member of the bar of this court is convicted in any court of any serious crime, whether resulting from a plea of guilty, nolo contendere, verdict after trial, or otherwise, and regardless of the pendency of any appeal, the court shall enter an order directing that within 20 days after service of the order (or, if longer, the resolution of any appeal from such conviction) the attorney show cause to the court in writing why he or she should not be disbarred. As part of the order the attorney shall be immediately suspended pending the resolution of the show cause order; provided that the court may vacate such suspension when it appears in the interest of justice to do so.

(B) In lieu of proceeding under subparagraph (A), the court, or a judge thereof, may refer an accusation or evidence that a member of the bar has committed a serious crime to the Grievance Committee for investigation, hearing, and report as under paragraph (1). If a final judgment of conviction has been entered, the referral shall be made by issuance of a show cause order as under paragraph (1)(C), in which the sole issue to be determined by the Committee is the extent of discipline that should be recommended.

(C) The term "serious crime" means any felony, as well as any lesser crime a necessary element of which, as determine by the statutory or common law definition of such crime in the jurisdiction in which it was entered, involves false swearing, misrepresentation, fraud, deceit, bribery, extortion, misappropriation, theft, or an attempt, conspiracy, or solicitation of another to commit a "serious crime."

(D) A certified copy of a final judgment of conviction of an attorney for any crime shall be conclusive evidence of the commission of that crime for purposes of discipline under this Rule. If a conviction is reversed, any suspension imposed under subparagraph (A) shall be vacated, but disciplinary proceedings may be commenced or proceed under subparagraph (B), in which event the Committee shall also determine and report its findings as to whether the attorney committed the crime.

(3) Discipline Imposed By Other Courts and Disciplinary Authorities.

(A) If a member of the bar of this court is suspended, disbarred, transferred to inactive status, or otherwise publicly disciplined by another court or disciplinary authority, this court may enter an order directing that within 20 days after service of that order the attorney show cause to this court in writing why, for any of the grounds set forth in subparagraph (C) hereof, the imposition of appropriate disciplinary action as stated therein (which, except for monetary sanctions, shall ordinarily be substantially identical to that imposed by such other court or disciplinary authority) would be unwarranted. As part of the order the court may direct that the attorney be suspended pending the resolution of such inquiry. Sanctions under Federal Rule of Civil Procedure 11 and similar rules do not constitute, for purposes of this paragraph and subsection (f), public discipline unless the sanction is disbarment or suspension.

(B) If the discipline imposed in the other jurisdiction has been stayed, any reciprocal disciplinary proceedings instituted or discipline imposed in this court shall be deferred until stay expires.

(C) This court shall impose the disciplinary action stated in the order unless in the response the attorney clearly demonstrates to the court that:

(i) the procedure in the other jurisdiction was so lacking in notice or opportunity to be heard as to constitute a deprivation of due process;

(ii) there was such an infirmity of proof establishing misconduct that the court should not accept as final the conclusions of the other jurisdiction;

(iii) the imposition of the disciplinary action stated in the order would result in grave injustice; or

(iv) the misconduct is deemed by this court to warrant substantially different discipline from that stated in the order.

Unless this court determines that element (i) or (ii) exists--in which event it shall enter such order as it deems appropriate--a final determination by another court or disciplinary authority that an attorney has been guilty of misconduct shall establish conclusively the misconduct for purpose of proceedings in this court.

(D) If an attorney has consented to disbarment by another bar, or has resigned from another bar while an investigation into allegations of misconduct was pending, the court may, in lieu of the other procedures of this paragraph (3), order that the attorney be forthwith disbarred and removed from the bar of this court.

(E) In lieu of the procedures set forth in this paragraph (3), this court may at any stage ask the Grievance Committee to conduct disciplinary proceedings under paragraph (1) or to make recommendations to the court for appropriate action in light of the discipline imposed by another court or disciplinary authority.

(4) Disbarment on Consent While Under Disciplinary Investigation or Prosecution. A member of the bar of this court who is subject of an investigation or a pending proceeding involving allegations of misconduct may consent to disbarment or removal from the bar of this court, but only by delivering to this court an affidavit stating that the attorney desires to consent to disbarment or removal and that:

(A) the consent is knowingly, freely, and voluntarily rendered, without coercion or duress; and

(B) the attorney is aware that there is a presently pending investigation or proceeding involving allegations of misconduct and acknowledges either that the material facts so alleged are true or that, upon prosecution of the charges relating to the matters under investigation, the attorney could not successfully defend himself or herself.

Upon receipt of the required affidavit, this court shall enter an order disbarring or removing the attorney from the bar of this court. The order shall be a matter of public record. However, the affidavit required pursuant to this paragraph shall not be publicly disclosed or made available for use in any other proceeding except upon order of this court.

(5) Service of Papers and Other Notices. Service of an order to show cause instituting, or in furtherance of, formal disciplinary proceeding shall be made by personal service or by registered or certified mail addressed to the affected attorney at the last address provided by such person to the court. Service of any other papers or notices required by the Rule shall be deemed to have been made if such paper or notice is mailed to the attorney at such address or to the person's attorney at the address indicated in the most recent pleading or document filed by them in the course of any proceeding under this Rule.

(6) Duties of the Clerk.

(A) Upon being informed that an attorney who is a member of the bar of this court has been convicted of any serious crime or has been disbarred, suspended, or publicly disciplined by another court or disciplinary authority, the Clerk of this court shall promptly obtain and submit to the court a certified or exemplified copy of the conviction or disciplinary judgment or order.

(B) Whenever any attorney has been convicted in this court of any serious crime or had been disbarred, suspended, censured, or otherwise publicly disciplined by this court, the Clerk of this court shall, within ten days thereafter, transmit a certified or exemplified copy of the conviction or of the order of disbarment, suspension, censure, or disciplinary action (i) to the National Discipline Bank operated by the American Bar Association and (ii) to any jurisdiction or court which, to the clerk's knowledge, has previously admitted such person to the practice of law.

(i) Incompetency, Incapacity, Disability, Impairment. If it appears that a member of the bar of this court has demonstrated a lack of competency to represent clients adequately in proceedings before this court or may be physically, mentally, emotionally, or psychologically incapacitated, disabled, or impaired, whether by addiction to or abuse of drugs or alcohol or for other reason, in a manner that jeopardizes the attorney's ability to represent clients adequately in such proceedings, the court or a judge thereof may refer the matter to the Grievance Committee for appropriate inquiry, investigation, counselling, and report. The availability of this procedure shall not preclude the court from acting under subsection (h) with respect to misconduct, notwithstanding such misconduct may have been the result of, or attributable to, incompetency, incapacity, disability, or impairment.

(1) Nature of Referral. A referral under this subsection is not considered as a disciplinary matter and does not implicate the formal procedures described in subsection (h). Upon receiving the referral, the Committee shall, if feasible, seek to meet informally with the attorney, explain the nature of the inquiry and the circumstances giving rise to the referral, and consider the comments and explanations of the attorney. The Committee shall then conduct such further inquiry and investigation as is needed to determine whether such incompetency, incapacity, disability, or impairment exists and, if so, what remedial actions could be taken to correct such condition.

(2) Determination of Competency. If the Committee determines that incompetency, incapacity, disability, or impairment does not exist to the extent of jeopardizing adequate representation of clients by the attorney, it shall so advise the court and the attorney, and the inquiry shall be considered closed. Such a resolution does not, however, preclude this court from proceeding with possible disciplinary action under subsection (h) if otherwise warranted.

(3) Condition Jeopardizing Representation. If the Committee determines that incompetency, incapacity, disability, or impairment does exist to the extent of jeopardizing adequate representation of clients by the attorney, it shall ascertain whether the attorney is willing to resign from the bar of the court or, if the condition may be correctable within a reasonable time, to cease further representation of clients in this court until the condition is corrected, whether by treatment, counselling, education, or other remedial measures.

(A) If the attorney resigns, the Committee shall so advise the court, and the matter shall be considered closed. The attorney may apply for reinstatement under subsection (j) when the condition has been corrected.

(B) If the attorney agrees to take corrective action and to cease further representation of clients until the condition is corrected, the Committee shall so advise the court, indicating the remedial measures to be undertaken. The Committee shall further advise the court when the condition appears to have been remedied, at which time the attorney may resume the representation of clients in this court.

(C) If the matter is not resolved voluntarily under subparagraphs (A) or (B), the Committee shall, after any additional investigation that may be needed, submit to the court a written report as under subdivision (h)(1)(C) in order that the matter may thereafter proceed as a disciplinary matter.

(j) Reinstatement. An attorney suspended for three months or less shall be automatically reinstated at the end of the period of suspension upon the filing with this court of an affidavit of compliance with the provisions of the order. An attorney suspended for more than three months, or disbarred or removed from the bar of this court, may not resume the practice of law before this court until reinstated by order of the court. An attorney who has been disbarred or removed from the bar of this court after hearing or consent may not petition for reinstatement until such person is a member in good standing of Alabama State Bar and at least five years have expired after the effective date of disbarment or removal, except that such a petition by a person removed because of incompetency, incapacity, or impairment may be prior to expiration of such five year period upon a showing that the incompetency, incapacity, or impairment no longer exists.

(1) Petition for Reinstatement. Petitions for reinstatement by a disbarred, removed, or suspended attorney under this Rule shall be filed with the Chief Judge of this court. Upon receipt of the petition, the Chief Judge may submit the petition to the court or may refer it to the Grievance Committee, which shall promptly schedule a hearing at which the petitioner shall have the burden of establishing and convincing evidence that he or she has the moral qualifications, capacity, competency, and learning in the law required for the admission to practice before this court and that resumption by such person of the practice of law will not be detrimental to the integrity and standing of the bar or the administration of justice or disserve the public interest. Upon completion of the hearing the Committee shall make a full report to the court. The Committee shall include its findings of fact as to the petitioner's fitness to resume the practice of law and its recommendations as to whether or not the petitioner should be reinstated.

(2) Order. If after consideration of the Committee's report and recommendation the court finds that the petitioner is unfit to resume the practice of law, the petition shall be denied. If after consideration of the Committee's report and recommendation the court finds that the petitioner is fit to resume the practice of law, the court shall reinstate the petitioner, provided that the reinstatement may be conditional (i) upon the payment of all or part of the costs of the proceedings, and the making of partial or complete restitution to all parties harmed by the conduct of the petitioner which led to the suspension or disbarment; (ii), if the petitioner was suspended or disbarred for five years or more, upon the furnishing of proof of competency and learning in the law, which proof may include certification by the bar examiners of a state or other jurisdiction of the attorney's successful completion of an examination for admission to practice subsequent to the date of suspension or disbarment; and (iii) upon any other or additional terms which the court in its discretion deems appropriate.

(3) Successive Petitions. No petition for reinstatement under this Rule shall be filed within one year following an adverse judgment upon a petition for reinstatement filed by or on behalf of the same person.

(4) Expenses. Petitions for reinstatement under this Rule shall be accompanied by a deposit in an amount to be set from time to time by the court in consultation with the Grievance Committee to cover anticipated costs of the reinstatement proceeding.

(k) Retained Powers. The provisions of subsections (h) and (i) do not apply to or limit the imposition of sanctions or other disciplinary or remedial action as may be authorized by the Federal Rules of Civil Procedure or the Federal Rules of Criminal Procedure, or through exercise of the inherent or statutory powers of the court in maintaining control over proceedings conducted before it, such as proceedings for contempt under Title 18 of the United States Code or under Rule 42 of the Federal Rules of Criminal Procedure. Nor do the provisions of such subsections limit the court's power to refer matters to appropriate committees or officials of the Alabama State Bar for such investigation and action as may be appropriate.

RULE 3007-1 OBJECTIONS TO CLAIMS

(a) Objections to claims are contested matters governed by Rule 9014 of the Bankruptcy Rules. The following describes the procedures for objections to claims in all the divisions of the Court.

(b) Upon the filing of any objection to claim, except as provided in paragraph (c) of this Rule, the Clerk shall prepare a Notice of Hearing on the objection to claim and the Clerk or some other person as the Court may direct shall transmit the notice to (1) the debtor, (2) the debtor in possession, (3) the claimant, (4) the trustee, (5) any committee appointed in the case, and (6) such other party as the Court may direct. The party filing the objection to claim shall serve the objection to claim on the aforesaid parties and shall attach to the objection to claim an appropriate certificate of service. The hearing shall be a final evidentiary hearing and parties are to be prepared for trial.

(c) Upon the filing of an objection to claim in substantial compliance with the form attached as Appendix J alleging that the claim is a duplicate of another claim, and submission of a proposed order in substatntial compliance with Appendix K, the proposed order shall be submitted. If either the objection or the proposed order fails to comply with the forms attached as Appendix J and K, or if any information required by those forms is not provided, then the objection to claim shall be treated as set out in paragraph (b) of this Rule.

RULE 3015-1 CHAPTER 13 AND 12 PLAN AND OBJECTIONS TO CONFIRMATION OR MODIFICATION OF PLAN AFTER CONFIRMATION

(a) Plan Summary. Pursuant to 11 U.S.C. §§ 1321, 1322, 1323, and 1329, the debtor in a case under Chapter 13 of the Bankruptcy Code shall file a Chapter 13 Plan Summary in substantial compliance with the one page Plan Summary attached as Appendix E.

(b) Objections. Objections to confirmation of the plan or to the attorney's fees proposed therein or to modification of the plan after confirmation shall be in writing, stating with particularity the grounds therefore, and filed with the Clerk. See Fed. R. Bankr. P. 3015(f) and (g).

(c) Service of Objections. The party filing an objection shall serve (1) the debtor, (2) the Standing Chapter 13 Trustee or the trustee appointed in a Chapter 12 case, (3) the affected creditors, (4) the Bankruptcy Administrator, and (5) any other entities designated by the Court and shall attach to the objection an appropriate certificate of service.

(d) Adjournment or Continuance of a Meeting of Creditors. If a party in interest, acting either pro se or through counsel, attends a meeting of creditors called pursuant to 11 U.S.C. §341 and that party needs additional time to determine if an objection to confirmation is appropriate, upon a verbal request from the party at the meeting, the trustee may continue the meeting for a reasonable time or adjourn the meeting.

(e) Notice of Modification of the Plan After Confirmation. Upon the filing of a motion under 11 U.S.C. §§1229 or 1329 to modify a confirmed plan, the movant, the Clerk, or some other person as the Court may direct shall, as directed by the Court, give not fewer than twenty (20) days notice by mail of either (1) a hearing on the proposed modification or (2) the time fixed for filing objections to the proposed modification to the following: (1) the debtor, (2) all creditors, (3) the Standing Chapter 13 Trustee or the trustee appointed in a Chapter 12 case, and (4) the Bankruptcy Administrator. If the movant is directed to serve the notice, the movant shall include with the notice a copy or a summary of the proposed modification. After service, the movant shall file a certificate of service specifying the date of service and the names and addresses of each party served. If the Clerk serves the notice, the movant shall serve all of the foregoing parties with a copy of the proposed modification and shall file a certificate of service specifying the date of service and the names and addresses of each party served. If the Court directs that a notice be sent that fixes the time for objections and an objection is filed, then the movant, the Clerk or some other person as the Court may direct shall give not fewer than twenty (20) days notice of a hearing as set by the Court on the objection and the proposed modification to the following: (1) the debtor, (2) all creditors, (3) the Standing Chapter 13 Trustee or the trustee appointed in a Chapter 12 case, and (4) the Bankruptcy Administrator. The party serving this notice shall file a certificate of service specifying the date of service and the names and addresses of each party served.

(f) Waiver of Objections. All objections may be deemed waived unless a written objection is timely filed, served on all proper parties, and the objector appears and prosecutes such objection at any hearing set on such objection.

RULE 3020-1 OBJECTIONS TO CONFIRMATION OF CASES FILED UNDER CHAPTER 11 OF THE BANKRUPTCY CODE

(a) Objections. Any objections to confirmation shall be filed and served by the objecting party no fewer than seven (7) days before the date for the hearing on confirmation or as may be otherwise ordered by the Court, and shall be governed by Rule 9014 of the Bankruptcy Rules. For good cause shown, any late-filed objection may be considered by the Court.

(b) Waiver of Objections. All objections may be deemed waived unless a written objection is timely filed, served on all proper parties, and the objector appears and prosecutes such objection at any hearing set on such objection.

RULE 4001-1 RELIEF FROM AUTOMATIC STAY

(a) Motions for relief from the automatic stay imposed by 11 U.S.C. §362 or from the co-debtor stay imposed by 11 U.S.C. §1301 are contested matters governed by Rule 9014 of the Bankruptcy Rules. The following describes the procedures for motions for relief from stay in each of the divisions of the Court.

(b) Eastern Division. Upon the filing of such a motion, the Clerk shall prepare a Notice and Opportunity for Hearing setting a date when a response is due and a date for a final hearing in the event a hearing would be held if such a pleading is received. A copy of the notice and opportunity shall be transmitted by the Clerk to (1) the movant, (2) the debtor, (3) the trustee, and (4) such other party as the Court or the Bankruptcy Rules may direct. The movant shall serve a copy of the motion on all parties entitled to a copy pursuant to the Bankruptcy Rules and shall include in the motion an appropriate certificate of service. If a timely objection is not filed, no hearing shall be held as the stay automatically lifts pursuant to 11 U.S.C. §362. If a timely objection is filed, a final evidentiary hearing shall be held on the date contained in the notice and opportunity for hearing and the parties shall come prepared for trial. Any proffered affidavits shall be in accordance with the Bankruptcy Rules and the Federal Rules of Evidence.

(c) Northern Division. Upon the filing of such a motion in a case under Chapter 7, 12, or 13 of the Bankruptcy Code, the Clerk shall prepare a notice setting a date by which a response is due and a date for a final hearing in the event such a responsive pleading is filed. A copy of the notice of final hearing shall be transmitted by the Clerk to (1) the movant, (2) the debtor, (3) the trustee, and (4) such other party as the Court may direct. If a timely response is not filed, a default may be entered granting the relief requested in the motion. If a timely response is filed, a hearing shall be held on the date contained in the notice. Upon the filing of such a motion in a case under Chapter 11 of the Bankruptcy Code, the Clerk shall provide the movant with a hearing date and the movant shall prepare a notice of final hearing and transmit the notice and a copy of the motion to parties entitled to notice pursuant to the Bankruptcy Rules. The movant shall file a certificate of service with the Clerk identifying the parties served.

(d) Southern Division. Upon the filing of such a motion, the Clerk shall prepare a notice of preliminary hearing and the Clerk or some other person as the Court may direct shall transmit a copy of the notice to (1) the movant, (2) the debtor, (3) the debtor in possession, (4) the trustee, (5) any committee appointed in the case, (6) the Bankruptcy Administrator, and (7) such other party as the Court may direct. The movant shall serve a copy of the motion on all of the aforesaid parties entitled to a copy and shall include in the motion an appropriate certificate of service. If the motion is not resolved at the preliminary hearing by consent or otherwise, oral notice of the date and time for a final evidentiary hearing shall be given at the preliminary hearing.

(e) Western Division. Upon the filing of such a motion, the Clerk shall prepare a notice of preliminary hearing and the Clerk or some other person as the Court may direct shall transmit a copy of the notice to (1) the movant, (2) the debtor, (3) the debtor in possession, (4) the trustee, (5) any committee appointed in the case, (6) the Bankruptcy Administrator, and (7) such other party as the Court may direct. The movant shall serve a copy of the motion on all of the aforesaid parties entitled to a copy and shall include in the motion an appropriate certificate of service. If the motion is not resolved at the preliminary hearing by consent or otherwise, oral notice of the date and time for a final evidentiary hearing shall be given at the preliminary hearing.

RULE 4001-2 CHAPTER 11 STANDARD AGREED CASH COLLATERAL ORDER UNDER 11 U.S.C. §363(c)(2)(A) AND RULE 4001(d) OF THE BANKRUPTCY RULES

Upon the filing and service of a motion in compliance with Rule 4001(b) of the Bankruptcy Rules, a debtor who is a "debtor in possession" as that term is defined in 11 U.S.C. §1101(1) and a creditor who has a security interest in the cash collateral of the debtor in possession may submit to the Court for approval a proposed order regarding the use of the cash collateral which may be in the form of the Order attached as Appendix F.

RULE 4002-1 STATEMENT OF INFORMATION

All petitions filed under Chapter 7 of the Bankruptcy Code shall include a completed Statement of Information in substantial conformation to the Statement of Information attached as Appendix G.

RULE 4003-2 MOTIONS TO AVOID NONPOSSESSORY LIENS UNDER 11 U.S.C. §522(f)(2) OR TO AVOID JUDICIAL LIENS UNDER 11 U.S.C. §522(f)(1)

(a) Motion. Proceedings to avoid nonpossessory liens or to avoid judicial liens are contested matters governed by Rule 9014 of the Bankruptcy Rules.

(b) Service of Copy of Motion and Notice of Hearing. Upon the filing with the Clerk of such a motion, the Clerk or some other person as the Court may direct, shall transmit a copy of the motion together with a notice of hearing to (1) the movant, (2) the debtor, (3) the debtor in possession, (4) the trustee, (5) affected creditors, (6) any committee appointed in the case, (7) the Bankruptcy Administrator and (8) any other entities designated by the Court.

(c) Content of Notice. The notice shall advise the parties of the date by which a responsive pleading to such motion is due and the date for the hearing on the motion, if any has been set at that time, or that a date for a hearing on the motion may be set by the Court through a subsequent notice, and that the failure to file a responsive pleading with the Court by the given date may result in the Court granting the movant the relief requested in the motion by default. The notice shall also advise the parties that all responsive pleadings shall be served on (1) the movant, (2) the debtor, (3) the debtor in possession, (4) the trustee, (5) any other affected creditors, (5) any committee appointed in the case, (6) the Bankruptcy Administrator and (7) any other entities designated by the Court. Notice which conforms substantially to the notice and certificate in the motion attached as Appendix H is deemed sufficient.

(d) Default. If a timely response to said motion is not filed, a default may be entered granting the relief requested in the motion. The default shall be entered by written order or other appropriate Court entry. The Court may choose not to hold a hearing if a timely answer to the motion is not filed.

(e) Service of Responsive Pleadings. Parties shall serve all responsive pleadings on (1) the movant, (2) the debtor, (3) the debtor in possession, (4) the trustee, (5) any other affected creditors, (6) any committee appointed in the case, (7) the Bankruptcy Administrator and (8) any entities designated by the Court.

(f) Default Set Aside. The Court, for good cause shown, may set a default aside upon a timely and appropriate request therefor on such terms and conditions which may include the payment of the moving party's reasonable expenses and attorney's fees, as the Court finds just and equitable.

RULE 4072-1. CREDITOR CONTACT WITH CHAPTER 13 DEBTOR

(a) Information to Creditor. A creditor holding a secured claim in a case under Chapter 13 of the Bankruptcy Code, without leave of court, may take the following action.

(1) Physical Condition, Location and Insurance. Make reasonable inquiry to the debtor as to the physical condition of the collateral, the location of the collateral, or insurance coverage on the collateral for the debt; and

(2) Post-petition payments. Make reasonable contact with the debtor as to payments which a proposed or a confirmed plan provides are to be paid directly to the creditor by the debtor, including the issuance of a written notice of a post-petition delinquency (but a copy shall be mailed to any attorney of record for the debtor).

(b) Information to Debtor. Upon reasonable request, a creditor shall provide directly to the debtor written information as to the status of the account, including the interest paid.

(a) Except as otherwise directed by a judge of the Court, court files may not be removed from a division office.

(b) If a Judge orders otherwise, a file may be removed by a member of the bar of this Court in person and only in accordance with the procedure set out in this Local Bankruptcy Rule. A member of the bar admitted to practice in this Court shall check out the files in person and must sign a register showing the date the file is removed. The files shall be returned within twenty-four hours from check-out time. An "out card" showing the name of the attorney and the date the files were checked out shall be placed in the active files.

(a) Filing Location and Color of Paper. Although a bankruptcy division office may accept an original petition and accompanying documents for filing on behalf of any other bankruptcy division office of this district pursuant to Rule 1073-1(b) of the Local Bankruptcy Rules, all petitions, schedules, statements and the like, all complaints to commence adversary proceedings (including a notice of removal from another court), all motions, all applications, and all subsequent pleadings, claims, and other papers shall be filed when practicable in the division of this Court to which the case was assigned pursuant to 28 U.S.C. §1408 and Rule 1073-1 of the Local Bankruptcy Rules. Except as otherwise allowed by the Court, all petitions, schedules, pleadings, and other documents to be filed shall be on white paper except the final report of a Chapter 7 trustee and a notice of audit in a case under Chapter 13 each of which may be on paper of a different color but shall not be on yellow or green paper.

(b) Requests for Information. All requests for information, copies, and the like shall be directed to the division office for the division of this Court in which the case, proceeding, motion, or application is pending.

RULE 5005-2 NUMBER OF COPIES

(a) Petitions, Schedules, Statements and the Like. The number of copies of petitions, statements, schedules and lists required by Rules 1002, 1003, 1004 and 1007 of the Bankruptcy Rules which shall be filed is as follows:

(1) Chapter 7: Original plus two (2) copies (one (1) for the Chapter 7 Trustee and one (1) for the Bankruptcy Administrator)

(2) Chapter 9: Original plus two (2) copies (one (1) for the Bankruptcy Administrator and one (1) for the Internal Revenue Service, Special Procedures)

(3) Chapter 11: Original plus two (2) copies (one (1) for the Bankruptcy Administrator and one (1) for the Internal Revenue Service, Special Procedures)

(4) Chapter 12: Original plus two (2) copies (one (1) for the Bankruptcy Administrator and one (1) for the Appointed Trustee)

(5) Chapter 13: Original plus one (1) copy (for the Standing Chapter 13 Trustee)

(b) Proofs of Claims. In cases under Chapter 13 of the Bankruptcy Code, claimants shall file the original plus one (1) copy for the Standing Chapter 13 Trustee of all proofs of claims required by Rule 3002 of the Bankruptcy Rules. Both the original and the copy shall include all appropriate attachments. In all cases under other Chapters of the Bankruptcy Code, only the original proof of claim need be filed. In cases filed under Chapters 11 or 13 of the Bankruptcy Code, claimants shall serve a copy of the proof of claim and all appropriate attachments on the attorney for the debtor.

(c) Copies of Petitions upon Conversion. Upon conversion of a case from one under Chapter 13 of the Bankruptcy Code to one under Chapter 7 of the Bankruptcy Code, in addition to the filing requirements of Rule 9019 of the Bankruptcy Rules, the debtor shall serve a copy of the original petition and schedules and all amendments thereto upon the Chapter 7 trustee and the Bankruptcy Administrator within twenty (20) days of the date of the notice of conversion.

(d) Copies of Applications for Compensation. Each applicant that files an application for compensation in accordance with Rule 2016-1 of the Local Bankruptcy Rules shall file an original plus one (1) copy labeled "Courtesy Copy" to be provided to the judge assigned to the case. Service of the application upon parties in interest shall be made by the applicant in accordance with Rule 2016-1(l).

RULE 5005-4 FILING PAPERS WITH CLERK VIA FACSIMILE

(a) Division Facsimile Machine. Each Division Office will accept filings by electronic facsimile machine only in compelling circumstances and after prior approval by a judge of the Court or his/her designee(s).

(b) Signatures. Each party or attorney for a party electing to transmit material for filing via facsimile shall be deemed to have adopted the facsimile reproduction of that person's signature as that person's signature for purposes of the Bankruptcy Code and Bankruptcy Rules. The signature upon the facsimile copy shall constitute a certificate of compliance with this rule and with the requirements of Rule 9011 of the Bankruptcy Rules.

(c) Facsimile Filing. Upon accepting any material for filing via facsimile under (a) above, the Clerk shall stamp the same "filed," date the same on the date shown on such facsimile, and place the same in the appropriate file.

RULE 5073-1 BROADCASTING, PHOTOGRAPHS, TELEPHONES AND PAGERS

Whether or not Court is actually in session, there shall be no radio or television broadcasting or taking of photographs in or from the courtrooms or their environs during the progress of, or in connection with, any judicial proceedings, including proceedings before a trustee or Bankruptcy Administrator. This restriction does not apply to ceremonial proceedings. Telephones, pagers, or similar communication devices are similarly not allowed in the courtrooms.

RULE 5081-1 PAYMENT OF FEES AND OTHER CHARGES

(a) Payment of Fees in Southern Division Office of the Bankruptcy Court. All filing fees payable to the Division Office in Birmingham shall be in cash, certified check, cashiers check, money order, or be by check drawn on the account of any officer of the estate or an attorney admitted to practice before this Court. All forms of payment other than money shall be drawn to the order of "Clerk, U.S. Bankruptcy Court." Other sums, including those of a nonfiling nature found in the Schedule of Fees for Bankruptcy Courts prescribed by the Judicial Conference of the United States under the authority of 28 U.S.C. §1930(b), may be payable by nondebtor personal check drawn to the order of "Clerk, U.S. Bankruptcy Court."

(b) Payment of Fees in Northern, Eastern, and Western Divisions of the Bankruptcy Court. All filing fees payable to the Division Offices in Anniston, Decatur, and Tuscaloosa shall be made by certified check, cashiers check, money order, or be made by check drawn on the account of any officer of the estate or an attorney admitted to practice before this Court. All forms of payment shall be drawn to the order of "Clerk, U.S. Bankruptcy Court." Other sums, including those of a nonfiling nature found in the Schedule of Fees for Bankruptcy Courts prescribed by the Judicial Conference of the United States under the authority of 28 U.S.C. §1930(b), may be payable by nondebtor personal check drawn to the order of "Clerk, U.S. Bankruptcy Court."

RULE 5092-1 SEAL OF COURT

The seal reproduced in Appendix I to these rules is adopted as the official seal of the Court.

RULE 7003-1 ADVERSARY PROCEEDING COVER SHEET

When presented for filing, a complaint for the commencement of an adversary proceeding in this Court shall have a cover sheet conforming to the appropriate official form (Form B 104) filled out as appropriate, to supply the statistical information concerning the proceeding which the Clerk is required to furnish to the Administrative Office of the United States Courts. A copy of official Form B 104 is presently available for dissemination in each Division Office.

RULE 7005-2 FILING OF DISCOVERY MATERIALS

Except as otherwise directed by a judge of the Court:

(a) Depositions shall not be filed with the Clerk except as provided in subsections (c) and (e) of this rule.

(b) Other discovery material (including interrogatories, requests for production, requests for admission, and responses thereto, as well as notices of depositions and discovery subpoenas) shall be served in accordance with the Federal Rules of Civil Procedure, but shall not be filed with the Clerk except as provided in subsections (c) and (e) of this rule.

(c) Discovery material shall be filed with the Clerk

(1) when directed by a judge of the Court; or

(2) when and to the extent needed by any party (A) in connection with any motion or response thereto or (B) for use at trial. A request to a custodian to file discovery materials (when the requesting party does not have the original or a copy of the materials so needed) shall specify the particular material (or portions thereof) needed for such purposes and the custodian shall file such materials promptly upon receiving the request.

(d) Counsel noticing a deposition or responsible for serving other non-filed discovery materials shall act for the Court as custodian of such deposition or discovery material. The custodian shall preserve the same for filing as provided in subsection (c) and shall provide to other counsel (and to any parties appearing without counsel) reasonable access to such material and reasonable opportunity to duplicate the same at the expense of the copying party. Other persons may, with leave of Court, obtain from the custodian a copy of non-filed discovery material upon payment of the reasonable expense of the copy.

(e) The provisions of this Rule for non-filing of discovery materials and their retention by counsel as custodian do not apply to depositions noticed by, or discovery materials to by served by, litigants who are not represented by counsel. Nor do these provisions preclude the Clerk from receiving and docketing discovery materials on file when a case is removed or transferred from another court.

(f) Unless otherwise directed by a judge of the Court, the Clerk may dispose of depositions and other discovery materials which were filed therewith if the filing party fails to retrieve such material from the Court within thirty (30) days after final disposition of the case including any appeal or the running of the time for appeal. Unless otherwise directed by a judge of the Court, the custodian of depositions and other discovery materials which are not filed with the Court may dispose of those materials thirty (30) days after final disposition of the case including any appeal or the expiration of the time for appeal.

RULE 7026-1 DISCLOSURE, DISCOVERY LIMITATIONS, COMMENCEMENT OF DISCOVERY AND MEETING OF PARTIES

This Rule is abrogated.

RULE 7069-1 PAYMENT OF JUDGMENTS

Except as otherwise directed by a judge of the Court there shall be added to each money judgment recovered in the court, including those entered on the minutes by the Clerk upon the verdict of a jury, the following language (or the equivalent thereof as adapted to the nature of the judgment):

It is further ORDERED by the Court that payment of the proceeds of the judgment and costs herein may be made directly to the attorneys of record for the plaintiff and that, upon receipt thereof, such attorneys shall satisfy said judgment on the records of this Court.

RULE 9010-2 POWERS OF ATTORNEY

In cases under Chapter 13 of the Bankruptcy Code a standing power of attorney authorizing another person to receive dividends on all claims filed by such other person on behalf of a creditor is acceptable.

RULE 9015-1 JUROR INTERROGATION

Communications with a juror concerning a case on which such person has served as a juror or alternative juror shall not be initiated by any attorney, party, or representative of either, prior to the day following such person's release from jury service for such term of court, without prior express approval of a judge of this Court.

RULE 9015-2 JURY TRIALS

(a) Applicability of Certain Federal Rules of Civil Procedure. Rules 38, 39, and 47-51 of the Federal Rules of Civil Procedure, and Rule 81(c) of the Federal Rules of Civil Procedure insofar as it applies to jury trials, apply in cases and proceedings, except that a demand made under Rule 38(b) of the Federal Rules of Civil Procedure shall be filed in accordance with Rule 5005 of the Bankruptcy Rules.

(b) Consent to Have Trial Conducted by Bankruptcy Judge. If the right to a jury trial applies, and a timely demand has been filed under Rule 38(b) of the Federal Rules of Civil Procedure, and the bankruptcy judge has been specially designated to conduct the jury trial, the parties may consent to have a jury trial conducted by a bankruptcy judge under 28 U.S.C. §157(e) by jointly or separately filing a statement of consent no later than thirty (30) days after an answer has been filed by all defendants.

RULE 9019-2 ALTERNATIVE DISPUTE RESOLUTION

A judge of the Court may, in a scheduling order or by separate order, direct that the litigants engage in one or more procedures for alternative dispute resolution (ADR) as authorized and provided in the ADR plan set out hereinafter. This ADR plan is substantially the same as the plan of the District Court. References in the plan to "this court" are to the bankruptcy court. References to "judge" are to the bankruptcy judge assigned to the case. References to the "Chief Judge" are to the Chief Judge of the District Court. References in the plan to "the clerk" are to the Clerk for the bankruptcy court.

ALTERNATIVE DISPUTE RESOLUTION PLAN

I. INTRODUCTION

The disposition rate for cases in the Northern District Of Alabama is presently, and consistently has been, very favorable, ranking the district among the most efficient courts in the nation. Nevertheless, implementation of an alternative dispute resolution (ADR) plan in the district offers several potential advantages for the court system, attorneys, and litigants. The variety of mechanisms available through ADR present opportunities for resolving some disputes more quickly than traditional litigation would allow. Further, ADR can greatly reduce the expense to the parties of resolving a dispute. ADR processes frequently are used in the early stages of case development, providing substantial savings in discovery and expert witness costs.

Development of this Plan was guided by three principles: early intervention and evaluation by the court; flexibility; and a preference for non-binding over binding processes. The fact that the Plan explicitly describes only a limited number of ADR processes should not be interpreted as discouraging the use of ADR. To the contrary, the Plan aims to encourage the use of ADR in part by granting the parties discretion to decide to employ any number of ADR processes available through private means.

II. PANEL OF NEUTRALS

The District Court will establish a Federal Court Panel of Neutrals (Panel) from which the neutrals for cases referred by the Bankruptcy Court to Mediation or Med/Arb will be selected. The Panel will be comprised of persons who, based on their training or experience, are deemed by the judges of the District Court to possess the qualities necessary for performance as neutrals. The Chief Judge of the District Court will designate a judge, magistrate, or other individual to receive applications from persons interested in being included on the Panel, and this designee will compile the list of names of persons deemed by the judges of the District Court to be qualified to serve on the Panel. Any person placed on the Panel may be removed for cause at the discretion of the Chief Judge of the District Court. There is no maximum limit to the number of people who may be included on the Panel.

It is anticipated that there will be cases for which Mediation or Med/Arb would be appropriate but in which the parties are unable to afford the additional cost of ADR. Each person serving on the Panel therefore will be encouraged, though not required, to volunteer to serve as a neutral, without remuneration, at least five hours annually. Each person applying for inclusion on the Panel will indicate on the application form the number of hours he or she is willing to serve annually on an uncompensated basis. III. REFERRAL OF CASES TO ADR

A. Exclusion of Categories of Cases

Each judge may decide to exclude certain classes of cases from consideration for referral to ADR. All cases in classes not excluded may be subject to an ADR evaluation conference

B. Evaluation of Cases for Potential Use of ADR

Each judge may conduct an ADR evaluation conference during the early stages of case development to determine whether a case might be appropriate for ADR. This conference may be held in conjunction with a pretrial conference under Rule 16 or a scheduling conference under Rule 16(b), but may be conducted as a separate conference. The conference must be attended by attorneys representing each party to the dispute or, in the case of unrepresented parties, by the parties themselves. The purpose of the conference will be to determine if the issues of the case, the needs and relationships of the parties, and any other factors the court may deem relevant make ADR appropriate for the potential resolution of the dispute.

The judge, after consulting with the parties, will decide as a result of the conference whether ADR should be employed in the dispute. If ADR is to be employed in the dispute, the court may order use of either the Mediation Track or the Med/Arb Track; or the parties may choose one of the tracks by agreement. The parties also may elect to utilize other ADR procedures under the Open ADR Track.

IV. ADR TRACKS

A. Open ADR Track

On this track, parties may employ any form of ADR upon which they mutually agree. Parties are free to utilize a single ADR process or a combination of ADR processes. Such alternate forms of ADR would include, but not be limited to, private arbitration and mini-trials. Upon suggestion of all parties, the court also may approve the use of summary jury trials in appropriate cases and upon such conditions as the court deems necessary.

If all parties advise the court that they would prefer to use a form of ADR other than either the Mediation or Med/Arb Tracks set out below, the court may permit them to do so, subject to the following:

(1) the parties must execute and submit to the court an agreement providing for the conduct of the ADR process;

(2) within ten (10) days of the completion of the ADR process, a written report must be filed with the court, stating whether any agreements were reached through the use of ADR, and signed by the neutral or by the parties if no neutral was used; and

(3) the ADR process must be conducted at the expense of the parties.

B. Mediation Track

On this track, litigants meet with a neutral mediator for in-depth settlement discussions. The mediator may be appointed by the court or selected by the litigants; he or she may be expert in the subject area of the dispute, but this is not a requirement. The mediator facilitates discussions among litigants to assist them in identifying the underlying issues and in developing a creative and responsive settlement package. The mediator does not, however, make findings of fact, make recommendations to the court of how to decide issues in the case, or render a decision on the merits of the case.

The purposes of mediation are to increase the chances of settlement, help the litigants devise better settlements, and improve relationships among the litigants.

(1) Eligible Cases. Any civil case not specifically excluded by category by the judge to which the case is assigned may be referred to mediation.

(2) Selection of Cases.

a. When Selected. A case may be selected for mediation:

i. when the status of discovery is such that the parties are generally aware of the strengths and weaknesses of the case; or

ii. at any earlier time by agreement of the parties and with the approval of the court.

b. How Selected. A case may be selected for mediation:

i. by the court on its own motion;

ii. by the court, on motion of one of the parties; or

iii. by stipulation of all parties.

C. Objection to Mediation

A party may object to the referral to mediation by the court by filing a written request for reconsideration, for good cause shown, within ten (10) days of the date of the court's order. Mediation processes will be stayed pending decision on the request for reconsideration, unless otherwise ordered by the court.

3. Administrative Procedure

a. Notice to Parties; Selection of Mediator by Parties. The court will promptly notify the parties in writing when a case is referred to mediation. The parties will first be given the opportunity to select the mediator of their choice. The parties must, within ten (10) days of the date of the court's notice of referral to mediation, notify the court of the name of the person selected by the parties to serve as mediator.

b. Selection of Mediator by Court: Notice to Parties; Setting of Mediation Conference.

i. If the parties fail to agree on a mediator within the ten-day time period, or fail to notify the court within the ten day time period, the court will send to the parties a list of the names of three (3) proposed mediators taken from the Federal Court Panel. Each party will then rank mediators in order of preference and, within seven (7) days of the date of the written notice, return the ranked list to the court. The court will:

(A) choose one party's list at random and "strike" the least preferred name on that list from consideration;

(B) go to the other party's list and "strike" the least preferred name remaining in consideration on that list; and

(C) select the remaining name as the mediator.

ii. In the event of multiple parties not united in interest, the court will add the name of one proposed mediator for each such additional party, and will then process the returned lists in the manner provided in section i above.

iii. After ascertaining from the selected mediator the existence of any potential conflicts of interest, the court will give or send written notice to the parties, with a copy to the mediator, advising them of the identity of the mediator selected. The mediator will then contact all of the parties and arrange a mediation conference at a time no more than thirty (30) days from the date of the court's notice naming the mediator.

4. Stay of Proceedings.

Upon the entry of an order directing mediation, proceedings in the dispute in mediation will be stayed as to the parties in mediation for such time period as may be set by the court. Upon motion by any concerned party, the court may, for good cause shown, extend the time period of the stay for such length of time as the court deems appropriate.

5. Neutrality of Mediator.

If at any time during the process of mediation the mediator becomes aware of, or a party raises, an issue concerning the mediator's neutrality based on either an interest in the case or a relationship or affiliation with one of the parties, the mediator will disclose the facts relevant to the issue to all of the parties. If a party believes in good faith that, based on the facts disclosed by the mediator, the mediator will not be or remain impartial, the party may request that the mediator withdraw. Upon receiving such a request the mediator must withdraw and request that the Court appoint another mediator. The Court will then appoint another mediator from the Panel of Neutrals, according to the procedure outlined in IV.B.3.

6. Written Submissions to Mediator.

a. Materials to be Submitted; When Due. At least ten (10) days before the mediation conference, the parties must submit to the mediator:

i. copies of relevant pleadings and motions;

ii. a short memorandum stating the legal and factual positions of each party respecting the issues in dispute; and

iii. such other materials as the party believes would be beneficial to the mediator.

b. Preliminary Materials. Upon reviewing those items, the mediator may, at his or her own discretion or on the request of a party, schedule a preliminary meeting with counsel.

7. Attendance at Mediation Conference.

The attorney primarily responsible for each party's case must personally attend the mediation conference and must be prepared and authorized to discuss all relevant issues, including settlement. The parties also must be present, except that when a party is other than an individual or when a party's interests are being represented by an insurance company, an authorized representative of such party or insurance company, with full authority to settle, must attend. Wilful failure of a party to attend the mediation conference will be reported by the mediator to the court, which may impose appropriate sanctions.

Mediation sessions will be private. Persons other than the parties and their representatives may attend only with the permission of all parties and with the consent of the mediator.

8. Time and Place of Mediation

The mediator will fix the time of each mediation session. The mediation sessions will be held at any location agreeable to the mediator and the parties or as otherwise directed by the court.

9. Procedure at Mediation Conference

a. Informal Procedure. The mediation conference, and such additional conferences as the mediator deems appropriate, will be informal. The mediator will conduct the process in order to assist the parties in arriving at a settlement of all or some of the issues involved in the case.

b. Private Caucuses, Confidentiality. The mediator may hold separate, private caucuses with any party or counsel. The mediator must not disclose to any other party to the mediation any information disclosed by a party during a caucus which that party indicates to the mediator should be treated as confidential. It will be the responsibility of each party to clearly indicate to the mediator which information is and is not deemed confidential by that party.

c. Witnesses. Upon consent of the mediator, the parties may produce witnesses to provide the mediator and the parties with additional information about the issues in dispute. The mediator will determine the manner in which witnesses may present information and the rights of other parties to question or cross-examine witnesses.

d. Expert Advice. When necessary, the mediator may obtain expert advice concerning technical aspects of the dispute, provided the parties agree and assume the expenses of obtaining such advice. Arrangements for obtaining such advice will be made by the mediator or by the parties, as the mediator may determine.

e. Settlement Proposal by Mediator. If, after reasonable efforts, the parties fail to develop settlement terms, or upon the parties' request, the mediator may submit to the parties a final settlement proposal that the mediator believes to be fair. The parties will carefully consider such proposal and, at the request of the mediator, will discuss the proposal with him or her. The mediator may comment on questions of law at any appropriate time.

f. Conclusion of the Mediation Process. The mediator will conclude the process when:

i. a settlement is reached; or

ii. The mediator concludes, and Informs the parties, that further efforts would not be useful.

10. Report to the Court

The mediator will report the results of the mediation to the court, according to the following rules:

i. if a settlement agreement is reached, the mediator, or, at the mediator's request, one of the parties, will prepare a written entry reflectin