Important, please note: This information sheet should be used in complying with the requirement of B.L.R. 9040-3 to discuss alternative dispute resolution with clients.

The United States Bankruptcy Court for the Northern District of California (“Bankruptcy Court”) has established an alternative dispute resolution program known as the Bankruptcy Dispute Resolution Program ("BDRP" or “Program”).

This description of the BDRP is being provided to you by the Bankruptcy Court because you are, or may be, a debtor or creditor in a bankruptcy case and/or a party to an adversary proceeding before the Bankruptcy Court, or counsel to a party involved with a bankruptcy case or an adversary proceeding, and may find this Program useful to you. If you are a party to an adversary proceeding, you are required by B.L.R. 9040-3 to discuss available dispute resolution options and consider whether your case might benefit from dispute resolution options, and submit a certification within a specified period of time.

The BDRP offers a means to resolve disputes quickly, at less cost and often without the stress and pressure of litigation. The Program offers a means to utilize the services of a trained Resolution Advocate (“RA”) to assist the parties in the resolution of their dispute. The parties choose the method of resolution that best suits their needs. Methods include mediation, negotiation, early neutral evaluation and settlement facilitation, which are discussed below.

Matters That May Be Referred to the BDRP

The BDRP is available to parties, whether or not represented by counsel, in all controversies arising in adversary proceedings, contested matters or other disputes in a bankruptcy case with a few exceptions.

Cost

There is a cost of $100 per side payable directly to the Resolution Advocate. That fee may be waived in whole or in part in the discretion of the RA (for example, if a party cannot afford the $100 fee). The RA is expected to provide parties with a reasonable amount of time attempting to resolve the dispute pursuant to the BDRP. It will normally be appropriate for the RA to discuss with the parties, no later than the beginning of the mediation, the minimum amount of time the RA expects to provide as part of the Program. However, once that period of time has expired, the parties and the RA may agree that the RA should continue to provide service to the parties on an hourly basis or on other financial terms acceptable to the parties.

Procedure for Referring a Matter to the BDRP

The rules governing the BDRP are found in the Bankruptcy Local Rules at B.L.R. 9040, et seq. The rules are available in the Clerk’s Office or at the Court’s website, www.canb.uscourts.gov; this Bankruptcy Dispute Resolution Program Information Sheet and the ADR Certification are also available on the Court’s website.

A matter may be referred to the BDRP by the Court with the agreement of the parties at any time. Typically, the Court refers a matter to the BDRP at a Case Management or Status Conference or hearing, or the parties may, at any time, submit a stipulated order requesting that the matter be referred to the BDRP. The order should recite that all parties to the dispute agree to the referral.

The following steps should be taken whether the matter is referred to the BDRP at a Case Management or Status Conference, at a hearing, or requested by the parties at another time:

1. The parties to the dispute are to confer and select a RA and an Alternate RA from the monthly lists of available panel members. There are separate lists covering RAs who are willing to serve in each location (e.g., Oakland, Salinas/Monterey, San Francisco, San Jose and Santa Rosa). These lists are updated monthly, and are posted outside the courtroom or may be obtained from the Courtroom Deputies. You may also call the BDRP Staff Administrator, Eddy Emmons, at (415) 268-2395 to check the availability of one or more of the RAs. Your selection of an RA and Alternate should be made only from the monthly lists. A complete list of all panel members, including short biographies, is provided for reference in the Clerk's office at the intake counter. In addition, all BDRP information is provided on the Court’s web site at www.canb.uscourts.gov.
2. The parties should agree on who is to complete the Stipulation to Appoint Resolution Advocate and then submit the Order Appointing Resolution Advocate for approval. if you are not an electronic filer, then provide two copies of the order to the court for signature, together with a stamped return envelope addressed to the submitting party.
3. The BDRP has been designed to be a streamlined procedure; therefore, upon receipt of the signed order, the submitting party must immediately serve a copy of the order on the RA, the Alternate and all parties to the dispute.

Once the RA receives a copy of the order, he or she will contact the parties to schedule a conference. The RA, in conjunction with the parties, will determine a time, place and format for the conference. Possible formats are as follows:

Facilitation - Facilitation is a collaborative process in which the RA functions as a neutral providing information about the process. The RA does not make substantive contributions regarding the merits of the dispute or possible settlements. A facilitator helps the parties define the issues in order to increase the likelihood that the parties will reach a consensus.

Mediation - Mediation is a flexible non-binding, confidential process in which a neutral facilitates negotiations among the parties to help them reach settlement. The mediator's goals include: improving communication across party lines, helping parties articulate their interests and understand those of the their opponent, probing the strengths and weaknesses of each party's legal positions, helping identify areas of agreement and generating options for a mutually agreeable resolution to the dispute. The mediator generally does not give an overall evaluation of the case. A hallmark of mediation is its capacity to expand traditional settlement discussion and broaden resolution options often by going beyond the legal issues in the controversy.

Early Neutral Evaluation - In Early Neutral Evaluation the parties and their counsel, in a confidential session, present summaries of their cases and receive a non-binding assessment by an experienced neutral professional with subject-matter expertise. The evaluator also helps identify areas of agreement, provides case-planning guidance and, if requested by the parties, settlement assistance.

All of the above are non-binding, voluntary, and confidential. Other processes and procedures, with the exception of arbitration, may used by agreement and at the discretion of the parties and the RA.

If you have any questions, please contact the BDRP Staff Administrator, Eddy Emmons, by phone at (415) 268-2395 or by email at edward_emmons@canb.uscourts.gov.

Rev. 1/4/2008