Can the lawyer release the fund to his client, the seller, after executing an affidavit that attests to the municipality`s decision not to try? The lawyer may resign as an agent, but he must take steps (DR 9-102) to protect the fund and settle the dispute. One possible way: the lawyer can take legal action and file the fund with the court. “This action is the result of a business venture between the applicant, the TSR Group, LLC (“TSR” or “applicant party”) and non-parties Stuart Bienenstock, Judah Bloch and Ariel Gantz, which included the acquisition, renovation, stabilization and conversion of commercial real estate in New Jersey into residential housing. The complainants allege that the defendants Jeffrey Levitin, Esq., and Levitin Associates, P.C. (together “accused”) were released from the trust of approximately $2.1 million of the plaintiffs` money and funds to other clients or third parties of the defendant without the plaintiff`s permission and without ensuring that the mortgages on certain real estate were registered on behalf of the plaintiff in the plaintiff`s total loan and investment amount. The complainant alleges that the duty of trust, offence, fraud, negligent misrepresentation, transformation, legal misconduct, conspiracy, aid and complicity in unlawful conduct, non-restitution of property in Blag, negligence and accounting is violated. After a property closure, a lawyer holds a trust to protect buyers from losses after a possible assessment of the sidewalk violation by the municipality. The municipality advises 2 not to conduct an assessment, but the purchasers refuse to allow the lawyer to release the fund. The written trust agreement does not provide for any mechanism for unlocking the Fund for purposes other than valuation. “As mentioned above, it is well established that an agent owes a trust obligation to the parties to the transaction. Greenapple v.
Capital One, NA., 92 A.D.3d 548, 549 (1st abbreviated 2012); Talanski v. Schulman, 2 A.D.3d 355, 359 (1:03). As an agent, the agent is strictly obliged to protect the rights of the parties for whom the agent acts as an agent. Grinblat v. Taubenblat, 107 A.D.2d 735, 736 (2d Dept. 1985). An agent “may be held liable for the breach of the trust agreement and the breach of the trust obligation as an agent.” Takayama v. Schaefer, 240 A.D.2d 21, 25 (2d Dept. 1998) (internal quotes omitted). “No.
The lawyer is bound by the trust agreement and cannot release the fund without the informed agreement of all parties. The obligations of the lawyer are controlled by the law of contracts and agencies. In the absence of a language of instruction in the trust agreement, it is inappropriate for counsel to assume the payment authority. “A trust fund is generally defined as a written instrument entrusted by a funder to a third-party representative or agent who, according to the instructions, then provides the instrument to the fellows as soon as certain conditions are met. See 99 Commercial St., Inc. v. Goldberg, 811 F. Supp. 900, 905 (S.D.N.Y. 1993). Although the strict definition limits the purpose of the written instruments trust, money deposited with a third party and provided to the beneficiary may also be considered a trust after the event or compliance with a condition, with the same rules applying to other trust agreements.
55 N.Y. Jur. 2d Fiduciary No. 2; Falk v. Goodman, 7 N.Y.2d 87 (1959); Matter of Burton, 200 A.D.2d 324, 327 (1. Mr. Dept. 1994) (“If the parties to a real estate transaction agree that the lawyer of either party will keep money in trust, it is not the money of a party to pay as it pleases”).) No specific form of word is required to establish a trust fund; Conversely, the call to a transaction as a trustee does not become a transaction. Farago/ Burke, 262 N.Y. 229, 233 (1933).
A grant agreement requires: (a) an agreement on the purpose and supply of the instrument or means; b) a third-party custodian; (c) the provision of the instrument or funds to a third-party custodian, which is subject to the performance of an act or the occurrence of an event; and (d) the abandonment of the instrument or resources by the donor.