220-52 Associates v. Edelman

The law presumes equal equity interest among partners in the assets of a partnership, absent an agreement to the contrary (Partnership Law § 40). Nearly fifty years ago, this Court carved out a significant exception to that principle, holding that an unequal division of profits may indeed give rise to a presumption of unequal ownership congruent with the unequal distribution of earnings, and only “clear proof’ can overcome the operation of that inference (Christal v Petry, 275 App Div 550, 557, affd 301 NY 562). Here, not only was defendant entitled to be viewed as the undisputed beneficiary…