LAW OFFICES OF ANDY TREUSCH 1535 RAMBLING OAKS LANE DELAND FL 32720
PAYMASTER AGREEMENTS
If you are considering utilizing a paymaster in a transaction for the purchase of scrap metal then perhaps the following explanation will be helpful. Let me explain briefly how the use of an attorney trust account to hold the purchase funds can facilitate the transaction; an agreement between the attorney and the buyer, called a paymaster agreement is executed. This regulates what happens with the funds; the conditions that must be met before the funds are dispersed to the seller, etc. The goal of the paymaster agreement is to objectify the payment process and protect the funds from being disbursed before control of the product is in the hands of the buyer. And to make sure that payment is made to the seller once the conditions for the sale are met. Once an agreement is signed for the purchase of the scrap the buyer deposits the purchase funds in the trust account. Once the conditions for payment have been met which are enumerated in the purchase order agreement between the buyer and seller and incorporated by reference into the paymaster agreement, the funds are distributed to the seller. In the event that the conditions are not met the funds are returned to the buyer. In a sense the paymaster agreement is similar to a Letter of Credit. The Florida Bar Association licenses and regulates attorneys in Florida, of which I am one. They have published a set of rules or a guideline telling attorneys what they can and cannot do in the practice of law. One of the most heavily regulated aspects of the practice of law concerns the attorney trust account. Put simply, the trust account is a depository for clients’ funds. It is not the property of the attorney, quite the opposite. The attorney has a fiduciary duty to protect the client’s funds and act with all prudence. Rule 51.2 of the Rules Regulating the Florida Bar requires records of all transactions be kept for 6 years, that a reconciliation of the account must be filed with the Association every year and, requires the banking institution that holds the account to report any checks returned due to insufficient funds. Additionally, the Association maintains a Client Security Fund which disperses funds to client’s that have been harmed by attorneys that have misused client funds. But perhaps the most protection afforded clients in the handling of their funds by an attorney lies in the penalties an attorney can suffer for misuse of the trust funds. Rule 4.1 clearly states the penalties as follows; 4.1 FAILURE TO PRESERVE THE CLIENT'S PROPERTY Absent aggravating or mitigating circumstances, and upon application of the factors set out in 3.0, the following sanctions are generally appropriate in cases involving the failure to preserve client property:
LAW OFFICES OF ANDY TREUSCH 1535 RAMBLING OAKS LANE DELAND FL 32720 | ATREUSCH@GMAIL.COM
| 786-897-0820
LAW OFFICES OF ANDY TREUSCH 1535 RAMBLING OAKS LANE DELAND FL 32720
4.11 Disbarment is appropriate when a lawyer intentionally or knowingly converts client property regardless of injury or potential injury. 4.12 Suspension is appropriate when a lawyer knows or should know that he is dealing improperly with client property and causes injury or potential injury to a client. 4.13 Public reprimand is appropriate when a lawyer is negligent in dealing with client property and causes injury or potential injury to a client. 4.14 Admonishment is appropriate when a lawyer is negligent in dealing with client property and causes little or no actual or potential injury to a client or where there is a technical violation of trust account rules or where there is an unintentional mishandling of client property I obtained my license to practice law in the state of Florida in 1985. During my tenure as an attorney millions of dollars have flowed through the trust account without any irregularities. I have never violated a client’s trust and, no complaints have been filed against me concerning trust account issues. If you have any questions or concerns about this matter, please do not hesitate to contact me. Sincerely,
Andy Treusch, Esquire
LAW OFFICES OF ANDY TREUSCH 1535 RAMBLING OAKS LANE DELAND FL 32720 | ATREUSCH@GMAIL.COM
| 786-897-0820