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Smith v. Kelley

Court of Appeals of Kentucky
465 S.W.2d 39 (1971)


Smith (plaintiff) worked at an accounting firm where Kelley and Galloway (defendants) were partners. There was no written partnership agreement between Smith, Kelley and Galloway, though the contract between them called Smith a partner, as did various other forms. Kelley and Galloway testified that Smith did not contribute to the partnership’s assets, take part in management, hire or fire employees, or sign notes for borrowed money, that he was not liable for the partnership’s losses, and that there was no agreement that Smith would share in a percentage of the partnership’s profits. During Smith’s three-and-a-half years at the firm, he did not claim entitlement to a share of the firm’s profits. After Smith left the firm, he brought suit for a partnership accounting, claiming entitlement to a percentage of the firm’s profits. The trial court dismissed Smith’s claim, finding that he was not a partner in the firm, and Smith now appeals.

Rule of Law


Holding and Reasoning (Clay, Comm.)

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