CryptoStar Corp. v. 611890 Alberta Inc., 2023 ONSC 1824

CITATION: CryptoStar Corp. v. 611890 Alberta Inc., 2023 ONSC 1824

DIVISIONAL COURT FILE NO.: 242/22

COURT FILE NO.: CV-22-00677485-0000

DATE: 2023/03/21

D.L. Edwards, Ryan Bell, and Leiper JJ.

BETWEEN:

CryptoStar Corp.

Plaintiff (Appellant)

– and –

611890 Alberta Inc., DBA Avila Energy, Avila Exploration & Development Canada Ltd. and Leonard Van Betuw

Defendants (Respondents)

Sara J. Erskine and Vincent DeMarco, for the Plaintiff (Appellant)

Megan E. Shortreed and Danielle Glatt, for the Defendants (Respondents)

HEARD: March 1, 2023 at Toronto (via ZOOM)

REASONS FOR DECISION

RYAN BELL J.

Overview

1CryptoStar Corp. moved for the interim preservation of specific funds or, in the alternative, for the preservation of assets purchased using the specific funds. Justice Black dismissed CryptoStar’s motion.¹ CryptoStar appeals, with leave.

2CryptoStar submits that the motion judge applied the incorrect legal test under r. 45.02 (preserve a specific fund) and under r. 45.01 (preserve assets) of the Rules of Civil Procedure,² and erred in finding that CryptoStar had not set out the assets it sought to preserve.

3The motion judge applied the correct legal tests in respect of rr. 45.01 and 45.02 to the facts as he found them. The motion judge did not err in law. I find no palpable and overriding error in his application of the legal tests to the facts or in his interpretation of the agreement between the parties. I would dismiss the appeal.

Background and Findings of the Motion Judge

4CryptoStar is a cryptocurrency mining company that generates cryptocurrency using computer hardware that continuously runs complex algorithms. This continuous operation – “mining” – requires substantial amounts