Lemonedes v. Balaber-Strauss

In Lemonedes v. Balaber-Strauss (In re Coin Phones), Inc.), 226 B.R. 131, 134 (S.D.N.Y. 1998), aff'd, 189 F.3d 460 (2d Cir. 1999), the Southern District of New York affirmed the bankruptcy court's refusal to adjudicate a fee sharing dispute between an "of counsel" attorney and a law firm, and concluded that the state court was the more appropriate forum for such a dispute. After finding that the attorney was free from statutory limitations on fee sharing arrangements due to his status as an "of counsel" attorney, the district court explained: "The state court provides an adequate forum and appropriate remedies both in equity and at law, for the general run of disputes between law partners, joint venturers and persons in similar relationships. . . . The regular work of a bankruptcy court could be compromised seriously should it hold itself out as the arbiter of disputes between law partners or between lawyers who have become joint venturers as to a single matter." Id. at 134.