ADA
local civil rule 5

CIVIL RULE 5: LOAN MODIFICATION SETTLEMENT CONFERENCE (LMSC)

    The Loan Modification Settlement Conference (LMSC) program is designed to facilitate faster resolution for alleged wrongful foreclosure cases.

    (Eff. 7/01/13)

A. STIPULATION

The Plaintiff will receive information from the Case Management judge about the Loan Modification Settlement Conference (LMSC) program either at the initial application for temporary restraining order (TRO) or at a subsequent case management conference. Plaintiff is responsible for notifying Defendant of the LMSC program.

(Eff. 7/01/13)

If the parties stipulate to an LMSC, the judge will sign the LMSC stipulation (attached local form CV-5059), and any pending hearing will be taken off calendar.

(Eff. 7/01/13)

Parties should submit a signed LMSC stipulation at least three court days before a scheduled court hearing. If the stipulation is signed by the judge, the case will be sent to LMSC, and new court dates will be set.

(Eff. 7/01/13)

When an LMSC stipulation is signed by the judge and filed, foreclosure activity is stayed 90 days. A Readiness Conference will be set 30 days after the filing of the LMSC stipulation. Notice of the hearings will be mailed to all parties. The LMSC hearing date will be set on a Wednesday Mandatory Settlement Conference calendar. A specially assigned temporary judge will hear the case. The initial Case Management Conference will remain set at the date set 120 days after filing, or will be rescheduled for 90 days after the filing of the LMSC stipulation, whichever is later.

(Eff. 7/01/13)

B. NEUTRALS

The case will be assigned to a specially trained LMSC temporary judge. The assignment will be made at the time the stipulation is filed (approximately 45 days prior to the LMSC) based on the LMSC neutrals’ availability. A letter of neutral assignment will be mailed to the parties, counsel and neutral. All parties will provide worksheet and other materials prepared for the LMSC to the assigned neutral at least 10 days in advance of the LMSC. LMSC materials will not be filed or lodged with the Court.

(Eff. 1/01/13)

C. SETTLEMENT

If a settlement is reached at the LMSC hearing, parties will sign a written agreement memorializing the terms of the settlement (attached local form CV-5060 ). Plaintiff will notify the Court of the settlement. The Court will set the case for Dismissal Review in 90 days to allow completion of the settlement. Once the settlement terms are performed, plaintiff will dismiss the case. If there is no settlement, parties will appear at the scheduled CMC and proceed with the lawsuit.

(Eff. 1/01/13)


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