08/16/2024 | News release | Distributed by Public on 08/16/2024 07:46
The judges remind the bar of the following:
1) 11 U.S.C. § 327 or 330 Employment Applications and Proposed Orders - Note that SC LBR 2014-1 previously provided that, upon the entry of an order approving an application for the retention of a professional, employment would be "effective from the date of the filing of the application." This Rule was abrogated with the Local Rule changes effective December 1, 2023. It is recommended that the proposed order should now expressly provide that employment is effective from the date of the filing of the application (local form available here). If an alternative effective date is desired, the application and proposed order should clearly request such relief and supporting grounds for the Court's consideration.
2) Fed. R. Bankr. P. 2004 Orders - Recently, some proposed orders submitted for consideration appear to go beyond the relief allowed pursuant to Rule 2004. Generally, the judges will not enter a proposed non-consensual order seeking relief pursuant to Rule 2004 that orders a party to respond to a subpoena for the production of documents. For further guidance regarding the appropriate process, see In re Partners In Hope, Inc., C/A No. 24-00935-EG (Bankr. D.S.C. May 17, 2024).