Walter D. Newrath, Trading as Corporation Audit Company v. Harry W. Schwartz

FAHY, Circuit Judge.

In 1951 plaintiff-appellee entered into an arrangement with defendants-appellants, a partnership doing business as Corporation Audit Company. By the arrangement the plaintiff became either an employee of the partnership with compensation to be measured by a fixed sum and five per cent of certain profits or a partner in the firm to the same or greater extent. The arrangement terminated in 1956. Considering the relationship to have been that of a partner in which he had a five per cent interest in the business of the partnership over and above a drawing account, plaintiff…