A THE PRIVY COUNCIL 16TH OCTOBER 1936.

The Privy Council heard an appeal arising from the West African Court of Appealf3s setting aside of a Divisional Court decision in an action by the United African Company, Limited against its agent, Taylor. The suit alleged negligence and breach of contractual duties under a 30 July 1933 agreement, including responsibility for deficiencies in goods and moneys at a factory. Although the pleadings contained no fraud allegations, two convicted employees testified that Taylor took or received the funds; the trial judge erroneously treated the action as an abuse based on felony, invoked Smith v. Selwyn, and non-suited the plaintiffs on the a37,816 claim. On appeal, evidence showed police and law officers refused prosecution, and the Chief Justice found reasonable excuse and entitlement to judgment. The Privy Council clarified that criminal allegations were not open on the pleadings, the defendant must be treated as innocent of fraud, and the case proceeds on negligence/contract. Because the Court of Appeal did not fix quantum, the Board will itself determine damages after an adjournment for particulars and documents, declined to interfere with a sequestration order, directed equal sharing of preparation costs, and urged expedition.