First National Bank v. Staples
New York Supreme Court
Appeal from Jefferson county. This action was brought by the First National Bank of Jersey City against Orren G. Staples and John F. Walton, to recover upon three promissory notes made by the firm of Howard & Underhill. The claim of the plaintiff, who appeals, was that respondents were copartners with James H. Howard and Clayton E. Underhill, and were members of the firm of Howard & Underhill. This was denied.
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Appeal from Jefferson county. This action was brought by the First National Bank of Jersey City against Orren G. Staples and John F. Walton, to recover upon three promissory notes made by the firm of Howard & Underhill. The claim of the plaintiff, who appeals, was that respondents were copartners with James H. Howard and Clayton E. Underhill, and were members of the firm of Howard & Underhill. This was denied. On the trial the notes mentioned in the complaint were produced by plaintiff, and their execution by the firm of Howard & Underhill was proven. The signatures to them were in the…
1Opinion of the CourtMartin, J.
It seems to be settled in this state that persons who have a proprietary interest in a business and in its profits are liable to creditors as partners. Magovern v. Robertson, 116 N. Y. 61, 22 N. E. Rep. 398; Hackett v. Stanley, 115 N. Y. 625, 22 N. E. Rep. 745. It seems to be equally well settled that a person who has no interest in the business of a firm, or in the capital invested, save that he is to receive a share of the profits as compensation for services or money loaned, for the benefit of the business, is not a partner, and cannot be held liable as such by a creditor of the firm.…
2Cases cited7 opinions
- Richardson v. . HughittNew York Court of Appeals · 1879
- Cassidy v. . HallNew York Court of Appeals · 1884
- Hackett v. . StanleyNew York Court of Appeals · 1889
- Burnett v. . SnyderNew York Court of Appeals · 1880
- Curry v. . FowlerNew York Court of Appeals · 1881
2 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- First National Bank v. Bank of Cottage GroveOregon Supreme Court · 1911
- Railway Express Agency v. Bank of PhiladelphiaMississippi Supreme Court · 1933
- Texas State Bank of Walnut Springs v. First Nat. Bank of MeridianCourt of Appeals of Texas · 1914