Remote Data Systems P/L and Ors v Hoover and Ors

The case of Remote Data Systems P/L and Others v Hoover and Others was heard by the court, which involved an appeal and new trial. The appellants had entered into franchise arrangements for the sale of computer software designed to provide backup storage facilities for computer data. They contested the findings of the trial judge regarding the viability of the franchise arrangements and the knowledge of the applicants about the success of the business being dependent on their sales ability. The appellants also argued that the total failure of consideration occurred because each franchise depended on a business that was worthless. The respondents, in turn, contended that there were misrepresentations of fact regarding the saleability and foundation of the business.

The legal issues before the court were whether the findings of the trial judge were against the weight of evidence and whether there was sufficient evidence to justify the trial judge's conclusion that all applicants knew the success of the business depended on their sales ability. Additionally, the court needed to determine whether there was a total failure of consideration due to the worthless nature of each franchise business. The court also had to consider whether the trial judge's findings that the second appellant was knowingly involved in the misrepresentation and that the third appellant had sufficient knowledge of the falsity of the representations were against the weight of evidence.

The court found that the evidence amply justified the trial judge's findings that there existed misrepresentations of fact as to the saleability and foundation of the business. The court held that the trial judge's findings regarding the knowledge and involvement of the second and third appellants were not against the weight of evidence. The court concluded that there was sufficient evidence to support the trial judge's findings that all applicants knew the success of the business depended on their sales ability, and that the total failure of consideration did not apply because the franchises were not worthless. The court granted leave to appeal with respect to the judgments in favour of the respondents D B M and G E Whateley, V Stevenson and Remote Data Systems Brisbane Pty Ltd.