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
ONTARIO
SUPERIOR COURT OF JUSTICE
DIVISIONAL COURT
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
[1] CryptoStar 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.
[2] CryptoStar 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.
[3] The 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
[4] CryptoStar is a cryptocurrency mining company that generates cryptocurrency using computer hardware that continuously runs complex algorithms. This continuous operation – “mining” – requires substantial amounts