TAYLOR v. DAVIS

JUDGMENT OF LORD MORRIS

Lord Morris delivered the judgment of their Lordships. The appellant brought an action in the Supreme Court of the Gold Coast in which he claimed to have an account taken of a timber business carried on by the respondent as his agent, and payment of the amounts found due to him on the taking of the account. By his judgment dated the 30th December, 1954, Acolatse J. dismissed the claim and allowed the respondent's counterclaim in the sum of £G1,351 6s. 3d. The appellant appealed to the West African Court of Appeal. By a judgment dated the 28th June, 1956, the appeal was dismissed. From this judgment the appellant now appeals.

After the trial of the action had begun before Acolatse J., an order was made referring accounts to a referee. The main issue which is raised in this appeal is whether the referee, who was appointed to go into accounts and report his findings to the court, exceeded his terms of reference by deciding certain questions of law and fact and whether the courts below should have accepted his findings although no evidence was called before the trial judge.

On the 31st August, 1945, (by an agreement of that date) the respondent was granted a timber concession by the Omanhene of Assin-Apimanim State. The respondent was to be permitted to fell timber for a period of ten years in an area of land measuring twenty miles square and to make such timber into logs to be hauled away. The respondent paid £G200 as an advance in respect of the payments which at agreed rates were to be made in respect of the trees that were felled. That amount of £G200 was paid to the respondent by the appellant, at whose instance and on whose instructions the respondent had entered into the concession agreement. This was recited in an agreement made between the appellant (who was called the principal) and the respondent (who was called the contractor) on the 31st January, 1946. By that agreement it was further recited that it was the intention of the parties to carry on timber business in the area covered by the concession and it was agreed that:

"in consideration of the premises and of the advance in money already made and to be made in the future by the principal towards the performance of the duties and obligations on the part of the contractor to be discharged in respect of the contract with the Assin Apimanim Stool the said contractor doth hereby COVEN-[p.390] ANT with the principal that he will faithfully carry out the said duties and ob