Del. Bankruptcy Hearings To Resume With Heavy Restrictions

By Vince Sullivan
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Law360 (June 16, 2020, 7:45 PM EDT) -- The chief judge of the Delaware bankruptcy bench told local lawyers Tuesday evening that in-person hearings in the First State will be allowed to resume beginning Wednesday, but stringent COVID-19 mitigation rules will be in place limiting the number of attorneys in the courtroom and requiring face coverings for all attendees.

Addressing more than 100 attorneys in a videoconference, U.S. Bankruptcy Judge Christopher S. Sontchi said Phase 1 of the reopening of the court would permit the six bankruptcy judges in Delaware to schedule in-person hearings at their own discretion since local cases of COVID-19 have plateaued.

He said the Administrative Office of the U.S. Courts had set benchmarks in new coronavirus cases that had to be met before the courts could begin a phased reopening, and cited Delaware Department of Health reports that over the last 14 days there has been a sustained downward trend in the average cumulative daily case counts.

"On-site court hearings shall be held at the discretion of the presiding judge, on a case-by-case basis, and shall be minimized and limited to critical cases only," Judge Sontchi said.

Hand deliveries to judge's chambers will likewise be allowed on a case-by-case basis at the discretion of the individual judges, he said.

No in-person hearings have been held in the Delaware bankruptcy court since March 16, shortly after a national emergency was declared over the spread of COVID-19.

To address ongoing concern about the virus, the court has implemented a set of rigorous safety measures designed to limit exposure for people attending the hearings. Judge Sontchi said face coverings will be required when on bankruptcy court premises, including in the courtrooms, except when addressing the court or for witnesses providing testimony.

Attendance at each hearing will be capped at about 25 to 28 people, depending on the size of the courtroom. To achieve these caps while also allowing for adequate representation of debtors and other parties to a case, the court will limit the number of representatives for each party.

The entities allowed to have representatives in the court will be limited to debtors, creditors, committees, parties seeking relief from the court, objectors, purchasers of assets, representatives of the Office of the U.S. trustee, necessary witnesses and members of the press.

Each entity can have one representative and two attorneys present in the courtroom, except for debtors, which will be allowed two representatives and three attorneys. Exceptions can be made on a case-by-case basis at the presiding judge's discretion.

Observers that don't fit into any of those categories will not be allowed in the courtroom.

Prior to entering the courtroom, attendees must complete a health screening using a phone application or website and present the results to the court security officers. Judge Sontchi said the results will be time-stamped and must be completed within 24 hours of the hearing time.

While in the courtrooms, social distancing will be required. No attendees are allowed to approach the court staff, the judge's bench or the witness stand. Counsel tables will have only two chairs and seating in the gallery will be spaced out, with only three people allowed to sit in each row, and every other row empty.

Passengers in the elevators will be limited to three people per car, and social distancing will be enforced throughout the bankruptcy court's premises.

Anyone not complying with the restrictions or who disregards the instructions of the court security officers will be denied entry to the court or will be ejected from the premises, Judge Sontchi said.

"These are really important and we're taking this seriously," he said. "So please understand you need to follow the rules."

All furniture and fixtures will be disinfected by court staff between hearings, which will start at staggered times throughout the day, with start times assigned to each individual judge. No judge will be permitted to schedule more than one hearing per hour. These restrictions are intended to prevent anticipated delays in admission to the hearings and to alleviate any crowding at the security checkpoints in the building.

Phase 2 of the reopening will maintain these restrictions, but will adjust the working conditions for court staff, Judge Sontchi said.

--Editing by Stephen Berg.

For a reprint of this article, please contact reprints@law360.com.

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