A. Scheduling
Each Judge holds preliminary hearings on motions for relief from stay on a regularly scheduled day. Please refer to Sections II. B. and C. above.
B. Drafting Issues
As part of its review process in connection with filed motions for relief from stay, the Court looks for compliance with the following requirements:
1. All motions for relief from stay should have the following:
a. Motion for relief from stay (Local Rule 4001-1(a));
b. Notice of hearing (Local Rule 4001-1(a), notice must substantially conform to Utah form 9013-1 or 9013-2);
c. Certificate of service (Local Rule 9013-1(g), the certificate may be attached to the papers that are served or may be filed separately); and
d. Optional: A supporting memorandum may also be filed (Local Rule 9013-1(d)).
2. The motion and/or memorandum should state sufficient grounds for relief under Section 362(d). If one of the grounds for relief is lack of equity, then the movant should identify the current amount of the lien (and amount of any other known liens against the property), the estimated value of the property subject to the lien, and how that value has been determined. If the movant is asserting that it is not adequately protected, please specify why not. Do not simply assert that the debtor lacks equity in the property or generally claim that you are not adequately protected. Such statements do not give the Court the basis to grant the requested relief, even if uncontested. Failure to comply with this procedure may result in the motion being denied without prejudice.
3. The motion and/or memorandum should attach suitable evidence that a lien is perfected pursuant to state law. If the underlying obligation has been assigned to the movant, evidence of the assignment should be provided.
C. Relief Without Hearing
If no objection to the motion is timely filed, the hearing may be stricken and an order for relief submitted pursuant to Local Rule 4001–1(c). A request to strike the hearing should be made at least two days prior to the hearing.
D. Preliminary Hearings
Unless otherwise ordered by the Court, the originally scheduled hearing will always be conducted as a preliminary hearing. At this preliminary hearing, detailed offers of proof should be used but no live witnesses. The Court will set the matter for a final evidentiary hearing only if the offers of proof demonstrate a genuine issue of material fact. Do not assume that you can make general statements of what you hope you can prove by the time of a final hearing or the motion may be denied at the preliminary hearing. Movant and any responding party must appear at the preliminary hearing. Any failure to appear at a preliminary hearing is subject to Local Rule 9073-1(j).
E. Final Hearings
A party may request a final hearing on a motion for relief from stay, instead of a preliminary hearing, by contacting the Scheduling Line at 801-524-6627. If a party requests that the hearing on the motion for relief from stay be conducted as a final hearing, the notice of hearing must clearly state that the hearing will be conducted as an evidentiary hearing. Failure to do so may result in the Court not allowing evidence to be presented.
The Court, on its own initiative, or at the request of the parties, may enter a scheduling order regarding preparation for and the conduct of the final hearing.
Common mistakes to avoid at or prior to the final hearing:
• Failure to exchange exhibits and witness lists with opposing party/counsel prior to the hearing.
• If the Court orders that Federal Rule of Bankruptcy Procedure 7026 applies to a motion for relief, parties should identify expert witnesses, and tender a list of the expert’s qualifications and a written summary of the expert’s expected testimony and opinions. Failure to comply with Federal Rule of Bankruptcy Procedure 7026(a)(2) may result in your inability to use any expert at the final hearing (if such a hearing is required).
• Relief from stay proceedings are "summary proceedings" in nature. While you need to present detailed offers of proof, keep in mind that the Court will not "finally determine" any of the factual issues raised. It will only make summary determinations as to whether the statutory grounds for relief have been satisfied.
F. Policy on Waiving Federal Rule of Bankruptcy Procedure 4001(a)(3) Stay of Order
The Court will not waive the 14-day stay of an order granting a motion for relief from the automatic stay as provided for in Federal Rule of Bankruptcy Procedure 4001(a)(3) as a matter of course. Granting this relief as a matter of routine without a stated basis is inappropriate.
Creditors seeking to shorten or eliminate the 14-day stay of order pursuant to Federal Rule of Bankruptcy Procedure 4001(a)(3) should include in their motions a concise statement of the basis for shortening or eliminating the stay.