NO. 17-1 – AUTHORITY TO USE BAR REGISTRATION AND DISCIPLINARY FUNDS FOR BANKRUPTCY MEDIATION ONE-YEAR PILOT PROGRAM


The Bankruptcy Court and District Court Bench Bar Committees have recommended the
adoption of this Order to use up to $10,000 of Bar Registration and Disciplinary Funds to create
a one-year pilot program that will subsidize the mediation expenses of litigants who, although
not necessarily proceeding in forma pauperis, are without adequate funds to pay bankruptcy
mediation expenses themselves. In consideration of the foregoing, and pursuant to D. Kan. Rule
83.1.2
(a), the Court orders that the following changes to D.Kan. Rule 83.5.3 be deemed for the
period of the pilot beginning January 1, 2018 and ending December 31, 2018,
D. Kan. Rule 83.5.3:
(e) Disbursements. Disbursements from the Bar Registration and Disciplinary
Fund are permitted only for the following purposes:
(1) [no change]
(2) [no change]
(3) As set forth in paragraph (g) of this rule and D. Kan. LBR 9019.2(b),
to pay mediators in bankruptcy cases for approved expenditures that the
party is unable to pay and that are not otherwise recovered in the action.
(3)(4) [no change]
(4)(5) [no change]
(f) Reimbursement Procedures for Court-Appointed Counsel in Civil Cases.
[no change]
(g) Reimbursement Procedures for Court-Approved Mediation in
Bankruptcy Cases One-Year Pilot Program.
(1) Allowable Expenses. Allowable expenses include the cost of the
mediation session at the rate negotiated by counsel and the mediator, plus
mileage expenses if the mediator is required to travel, that the party is
unable to pay, and that are not otherwise recovered in the action. The
mediator’s negotiated fee (including mileage) shall be divided equally
between the parties unless otherwise agreed to and approved by the court.
(2) Payment Procedure. To qualify for payment, all expenditures must be
approved in advance by the bankruptcy court. Before incurring any
reimbursable expense, the party must:
(A) complete a reimbursement form, which is available from the
bankruptcy clerk; and
(B) secure the requisite prior approval, in writing, by the
bankruptcy judge to whom the case is assigned and, where
required, by the chief bankruptcy judge.
(3) Who Must Approve Expenditures. The presiding bankruptcy judge
may approve expenditures that total less than $750 for the entire
mediation. The chief bankruptcy judge must approve expenditures that
reach or exceed $750.
(4) Amount of Payment. The District Court Clerk will pay mediators such
amount as the court approves.
(5) Any payment from the Bar Registration and Disciplinary Fund must
be repaid if money is recovered in the settlement, unless waived by the
court.
(g)(h) Suspension. [no change]
(h)(i) Reinstatement. [no change]
(i)(j) Criminal Charges, Potential Criminal Charges, and Disciplinary
Proceedings. [no change]

IT IS SO ORDERED.
Dated this 14 of November, 2016

s/ Julie A. Robinson
JULIE A. ROBINSON
CHIEF UNITED STATES DISTRICT JUDGE

U.S. Federal Court District of Kansas