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B-2014-1. EMPLOYMENT OF PROFESSIONAL PERSONS AND TREATMENT OF RETAINERS IN CHAPTER 11 AND 12 CASES

(a)   Employment Applications Generally

A person (the “Applicant”) seeking Court approval of the employment of a Professional shall file an application and a supporting affidavit or verified statement of the Professional that complies with Fed.R.Bankr.P. 2014 (an “Employment Application”) and submit a proposed order. The Employment Application shall state the proposed terms of employment. If employment is at an hourly rate, the proposed hourly rates of all Professionals who will work on the case shall be provided. If employment is on a contingent fee basis, the percentages and triggering events shall be disclosed. After discovering any additional material information relating to the employment, the Applicant and Professional shall file and serve a supplemental affidavit disclosing the additional information.

(b)   Employment Applications in Chapter 11 and 12 Cases

(1)     Time to File

An Employment Application for the Debtor’s counsel in a Chapter 11 and 12 case shall be filed within 14 days after the commencement or conversion of the case to Chapter 11 or 12.

(2)     Service of Notice and Hearing

(A)     Service and Notice of Employment Application

The Applicant shall serve the Employment Application, including the supporting affidavit or verified statement, and a 21-day Objection Notice on the Service List and other parties as directed by the Court. Along with the Employment Application, the Applicant shall file a Certificate of Service. The application, notice, and Certificate of Service may be combined into one document, a sample of which is available on the Court's website.

(B)     Objections, Court Review, and Effective Date

An objection shall be filed and served upon the Applicant, the Professional, the Service List and other parties as directed by the Court. If no objection is filed, the Court may grant the Employment Application and approve the proposed employment and a periodic payment procedure without a hearing or further notice. If the Employment Application is granted, the employment shall be effective as of the date the Employment Application was filed unless the Court orders otherwise.

(3)     Conflicts

If a Professional seeks to resolve a potential conflict of interest, the Professional shall comply with applicable Rules of Professional Conduct. All consents or waivers of conflicts of interest shall be in writing. The Professional shall serve copies of all waivers upon the Applicant and the Service List with the Employment Application or following receipt by the Professional.

(4)     Periodic Compensation Other Than Pursuant to 11 U.S.C. § 331 

A proposed Professional shall obtain Court approval of the terms for applying a retainer to the payment of the Professional’s fees and expenses or any other procedure for receiving compensation before a final fee application that does not comply with 11 U.S.C. § 331.  If requested as part of the Application, the proposed procedure shall be summarized in the Objection Notice.  If requested separately, the Applicant shall provide notice in the same manner as required by subparagraph (b)(2)(A) of this rule.  Any proposed procedure shall include the following terms:

(A)      a limit on payment without a fee application to 80% of the fees requested, but the procedure may provide for payment of 100% of expenses;

(B)        the proposed schedule for filing a Notice of Draw on Retainer/Payment of Fees and Expenses Pursuant to B-2014-1 ("Notice of Draw") and for making available the documents that support the requested payment;

(C)       the proposed distribution of the Notice of Draw and supporting documents; and

(D)     suspension of the proposed procedure as to any Professional who does not comply with the periodic filing requirements of S.D.Ind. B-2016(b)(2)(i).

(5)     Effect of Court's Approval of Procedure for Interim Payments

Court approval of an interim payment procedure is not allowance of fees and expenses that are subject to the interim payment procedure. All fees and expenses are paid subject to court approval of the Professional's final fee application. Failure of a party to object to a Professional's Notice of Draw does not affect the party's right to objection to an interim or final fee application.