Jenny purchased a new extension ladder from "A Business" as she was planning to repaint her single level timber home in NSW. On using the ladder for the first time the extension mechanism failed and she fell off the ladder fracturing both legs, her left arm and two ribs. She would like to sue "A Business" for negligence and consults solicitor Mackay to commence proceedings.

Jenny executes a written retainer agreement with Mackay which includes a clause that states: "12.The client authorises the lawyer to engage, at a cost to the client, any expert or experts that the lawyer deems fit to progress the matter in or outside a court of law."

1. Mackay does not provide a written costs agreement or costs disclosure rather verbally assures Jenny that the matter will cost no more than $50,000 and she is set to recover around $150,000.
2. Jenny gives Mackay $30,000 in cash to cover the initial costs to start proceedings.
3. Mackay places $10,000 of that money in his bottom desk draw, deposits $10,000 in his office general account to cover costs and disbursements and deposits the remaining $10,000 in his office trust account.
4. Mackay does not issue a receipt to Jenny for the money.

Question:

How has Mackay breached their legal ethical duties and his professional responsibility?

What sections of the NSW Professional Conduct Rules has be breached?

What are some relevant cases that support this rationale?

What NSW laws has been breached?