For example, an attorney who collects money from a client and does not pay it over ordinarily holds those funds as a trustee rather than as a debtor of his client. In Re Peltz, 23 A.D.2d 173, 259 N.Y.S.2d 522 (1965). The principle that a lawyer cannot delegate his fiduciary duties to another in an effort to avoid its strictures or to avoid responsibility for the manner in which they are undertaken is settled law.
Money collected by an attorney and not paid over is ordinarily held as a trustee rather than as a debtor. In re Peltz, 23 App. Div. 2d 173, 259 N.Y.S.2d 522 (1965); In re Powers, 235 App.Div. 382, 257 N.Y.S. 113 (1932); In re Babcock, supra. The funds cannot be used for the attorney's own purposes.
While this court cannot rule on plaintiffs' arguments that the Pennsylvania Court of Common Pleas lacks personal and subject matter jurisdiction, New York courts have primary jurisdiction over New York attorneys and their compliance or violation of the New York Code of Professional Responsibility and the Disciplinary Rules.See, In re Peltz, 23 AD2d 173 [4th Dept. 1965]; Greenwald v. Zyvith, 23 AD2d 201 [2nd Dept, 1965]. Accordingly, it is hereby:
Every attorney admitted to the Bar must strictly follow and subscribe to the provisions of the Code which was designed to protect the special relationship between attorneys and clients. (Matter of Peltz, 23 A.D.2d 173; Greenwald v Zyvith, 23 A.D.2d 201.) In the present case before the court, the parties to this agreement not only violated EC 4-6 prohibiting the sale of a law practice but by the contractual terms have blatantly violated other provisions of the Code of Professional Responsibility.
Every attorney admitted to the Bar must strictly follow and subscribe to the provisions of the Code of Professional Responsibility which was designed to protect the special relationship between attorneys and their clients. (Matter of Peltz, 23 A.D.2d 173; Greenwald v Zyvith, 23 A.D.2d 201.) Although the provisions of the code do not have the effect of statutory law, the court will enforce strict compliance of the provisions as a means of supervising proper professional conduct of attorneys.