William S. Arnold, Respondents v. Emerson C. Angell, Appellant

Summary

The New York Court of Appeals reversed the lower court's judgment, holding that the judgment was based on a cause of action not pleaded in the complaint and that the action for partnership dissolution ended when no partnership was found. The Court also held that the defendant did not waive a usury defense despite not pleading it, finding the transaction to be a usurious loan, and therefore affirmed the plaintiffs' entitlement to recovery of the agreed share of profits and usury interest.