Effective December 1, 2016, Fed.R.Bankr.P. 7008, 7012, and 9027 require each party to an adversary proceeding to state whether the party does or does not consent to the bankruptcy court entering final orders or judgment.  These rules were amended in light of the Supreme Court decisions in Stern v. Marshal, 131 S.Ct. 2594 (2011), and Wellness International Network v. Sharif, 135 S.Ct. 1932 (2015), which addressed the bankruptcy court’s authority to adjudicate claims that could require Article III adjudication.    

     This Court previously required parties to file a Consent/Refusal to Consent (NM LF 1334). The failure to timely file the form was deemed consent to the Court hearing and determining all claims and entering final orders and judgments.  

    Because the new rules (F.R.Bankr.P. 7008 and Fed.R.Bankr.P. 7012) require plaintiffs to state in their complaint and defendants to state in their answer whether they consent to the bankruptcy court entering final orders or judgment, the Court will no longer use the Consent/Refusal to Consent form in adversary proceedings.  

    Instead, the form Summons issued by the Court will remind the defendant of Fed.R.Bankr.P. 7012’s requirement and will state that failure to comply will constitute consent.  In addition, the Court has issued a Standing Order Regarding Fed.R.Bankr.P. 7008, 7012, and 9027, which provides that the failure to comply with those rules will constitute consent to the Court entering final orders and judgment.  A copy of the standing order is attached to this notice.  The standing order is also posted on the Court’s website under the tab, Forms and Local Rules, under the General Orders link.