Rule 2014-1 : Appointment of Professional Persons


(a) Ex Parte Application: Subject to the limitations of FED. R. BANKR. P. 6003, applications for appointment of professional persons pursuant to FED. R. BANKR. P. 2014 and 11 U.S.C. § 327 may be granted nunc pro tunc to a date prior to the date of the order authorizing the engagement.

(b) Applications Requiring Notice: The court may require the applicant to mail notice of the application pursuant to L.B.R. 9013-1, or as otherwise directed by the court, particularly when any of the following events or conditions are present:

(1) The professional receives or proposes to receive payment of a retainer in connection with a bankruptcy case and approval of the retainer is sought in the same application seeking appointment of the professional. In such cases, the application and notice must state:

(A) the amount of any retainer received or proposed;

(B) the source of the payment or retainer; and

(C) whether the professional’s fees are paid by a principal, insider, or affiliate of the debtor.

(2) The professional files an application for retention which identifies a potential conflict may exist. In such cases, the application and notice must state sufficient facts for third parties to determine whether a conflict of interest exists, including whether the professional represented the debtor pre-petition.

(3) The professional’s retainer or other fees have been, or will be, paid by a third- party payor.

(4) The professional represents multiple debtors in related or jointly-administered cases.

(5) The professional proposes to be paid under non-traditional compensation arrangements (e.g. flat fee agreement or contingency fee agreement).

(6) The professional asserts a lien on the debtor’s property.

(c) Verified Statement: A verified statement pursuant to FED. R. BANKR. P. 2014 is required. When notice of the application is required, a copy of the verified statement filed pursuant to FED. R. BANKR. P. 2014 must be attached to the notice.

Commentary

[Source: L.B.R. 214]