9019-1 Settlement:  Compromise of Controversy; Motion Required; Notice on Related Adversary Proceeding

 ** ADDED 10-21-2024 **

FRBP 9019(a) provides that a trustee may settle a matter by compromise of controversy.  

A new LBR 9019-1 has been approved by the Board of Judges and made effective on 10-21-2024.  Specifically, new LBR 9019-1 clarifies that:

1. The proceeding to settle or compromise a dispute qualifies as a contested matter
2. The motion to compromise must be filed on the docket of the main case, even if the compromise will settle part or all of an adversary proceeding.
3. The notice of motion and the motion to compromise must indicate whether the compromise settles all claims against all parties, or whether any parties or claims remain in the dispute.  
4. If the compromise is within an adversary proceeding, a notice must also be filed in the adversary proceeding to indicate that a motion to compromise has been filed on the main case docket.