New York Court of Appeals

The Manhattan Brass and Manufacturing Company v. Herman B. Sears, Impleaded With Frederick Judson, Respondent

June 5, 187145 N.Y. 797

Summary

The New York Court of Appeals reversed the dismissal of the plaintiff's suit, holding that the agreement between Frederick Judson and Herman B. Sears created a partnership as to third persons even though the parties expressly stated it was not a partnership. The court reasoned that sharing in the profits alone is sufficient to constitute a partnership and that the lease transaction was within the partnership business. Accordingly, the plaintiff may proceed on the claim for rent.