Select Local Rule Series

You are here

Auctioneers

Local Rule Number: 
Rule 6005-1
6000 Series

(A)       Local Form Application, Affidavit, Order Required.  Applications for court approval of the employment of an auctioneer under 11 U.S.C. §327(a), must substantially conform to the Local Form “Application for Approval of Employment of Auctioneer”.  Applications shall not include copies of the auctioneer’s standard auction contract in lieu of this statement of costs and expenses and summary of terms of employment and proposed compensation.  The application must be accompanied by an affidavit that substantially conforms with the Local Form “Affidavit of Auctioneer”; and (b) a proposed order granting the application that substantially conforms with the Local Form “Order Approving Employment of Auctioneer”.

 

(B)       Requirements for Auctioneer.  Auctioneers whose employment is proposed must (1) be licensed pursuant to Florida Statutes §468.381 et seq., or §468.387, for out-of-state auctioneers, (2) be covered by the Florida Auctioneer Recovery Fund as required by Florida Statute §468.392, and (3) must either post a blanket (or case specific) fiduciary and faithful performance bond or surety bond, issued by a surety company approved by the Department of the Treasury, in an amount not less than the maximum expected proceeds of any proposed auction or combination of auctions, if a blanket bond.  The bond must be in favor of the United States of America and the original bond shall be forwarded to the U.S. Trustee, who will maintain and safeguard the original.  A copy of the bond should be provided to the trustee and should be included as an attachment to the application to employ auctioneer, as required by subdivision (A) of this rule.

 

(C)       Compensation.  Compensation may be approved by the court upon any reasonable terms and conditions negotiated with the auctioneer including a flat fee, guaranteed return, percentage of gross revenue, buyer’s premium or any other reasonable method, provided that the basis for determining the fee is clearly described.

 

(D)       Notice and Hearing.  The application may be granted without notice or hearing, if the application reflects that the facts and circumstances so warrant including the size of the auction, the size of the estate, or a special need for haste.  The applicant must request a hearing on the application if any aspect of the proposed employment or auction is irregular.

 

(E)        Service of Order.  Upon entry of an order approving the employment, the applicant shall serve copies of the order together with the sale notice in accordance with Bankruptcy Rules 2002(a)(2) and (c)(1) and 6004.

 

(F)        Auctioneer’s Report Summarizing Sale; Payment of Fees.  Upon the completion of the auction, the auctioneer shall file with the court a report (a) summarizing the results of the auction and (b) stating the fees and expenses which will be paid in accordance with the order.  Copies of the report shall be served only on the U.S. Trustee, the trustee, and any other party who specifically requests a copy, or if applicable, those parties required to be served pursuant to Local Rule 2002-1(H).  The auctioneer’s fees and expenses may be paid without the necessity of further notice or hearing unless a party in interest files an objection to the report within 14 days after the report is filed.