Lord Atkin:-

These are an appeal and a cross appeal from decisions of the Supreme Court of Canada in an action brought in the High Court of Ontario by the present respondent against two companies named Solloway Mills and Co. Ltd., one registered in Ontario and the other in the Dominion and against the present appellants Mr. Isaac Solloway and Mr. Harvey Mills, two of the directors of the companies. The action was tried before an Assistant Master, Mr. Lennox, who reported that there was due to the plaintiff from the Ontario Company and the appellants the sum of $65,129.92. The Dominion Company had dropped out of the proceedings. On appeal by the present appellants from the Master's report, Kerwin J. confirmed the report with an arithmetical correction of the amount found to be due to $55,922.98. On appeal the Court of Appeal dismissed the action as against the present appellants, Macdonnell J. A. dissenting. On appeal by the plaintiff, the Supreme Court allowed the appeal but reduced the amount of the judgment to $28,281.40 and interest. The two director-defendants appeal and the plaintiff cross appeals.

The claim of the plaintiff arose out of transactions which he had with the Ontari