Source: https://ja.scribd.com/document/390400293/Copytrack-Pte-Ltd-v-Wall
Timestamp: 2019-04-21 08:59:55+00:00

Document:
Place and Date of Hearing: Vancouver, B.C.
Place and Date of Ruling: Vancouver, B.C.
The value of the Ether Tokens that were transferred was about $495. Copytrack PTE Ltd. referred to as the "Wall Wallet". As part of its business. he has failed to do so. which are a different form of cryptocurrency. its summary judgment application was limited to its claim for conversion and wrongful detention in respect of the Ether Tokens.  The value of the CPY Tokens intended to be transferred was about $780 CDN. 2018. As I will discuss in further detail below. ("Copytrack") is a Singapore company engaged in the business of digital content management and automated copyright enforcement. While Copytrack’s notice of civil claim alleges a number of different causes of action.  This application is thus brought by Copytrack seeking a number of orders relating to what it says is Wall's wrongful retention or conversion of the Ether Tokens.Copytrack Pte Ltd. 2018. on May 25. 2017 to February 10. On or about February 15.  Immediately after the erroneous transfer of the Ether Tokens to Wall. Copytrack mistakenly transferred to Wall approximately 530 Ether Tokens (the “Ether Tokens”). Copytrack advised Wall of the mistake and requested that he immediately return the Ether Tokens. his position was that he no longer has possession or control of the Ether Tokens. Copytrack seeks summary judgment pursuant to Rule 9-6 of the Supreme Court Civil Rules. v. Wall Page 2 Introduction  THE COURT: The plaintiff. it created cryptocurrency known as 2018 BCSC 1709 (CanLII) “CPY Tokens”.  From on or about September 10. . To complicate matters. The transfer was made to Wall's cryptocurrency wallet. 2018 I was advised by the parties that Wall had died on May 23.000 CDN. To date. Copytrack offered CPY Tokens for sale to investors as part of an initial coin offering campaign (the “ICO”).  The defendant Brian Wall (“Wall”) participated in the ICO and subscribed for 530 CPY Tokens.
it is useful to highlight a few additional facts to complete the narrative. the Ether Tokens were returned to the Wall Wallet.  After some further email exchanges on February 16. of Wall's death. Copytrack requested the return of the Ether Tokens from Wall. Wall asserts that these transfers were made by an unknown third party who unlawfully accessed his wallet without his knowledge or consent. the day after Copytrack’s application was heard. 2018. I therefore asked counsel to provide me with written submissions on the impact. This latter point 2018 BCSC 1709 (CanLII) was only addressed in passing by the parties at the hearing. subrule (5) of which provides: (5) On hearing an application under subrule (2) or (4). Wall Page 3 2018. the court. Legal Framework  Copytrack’s application is brought pursuant to Rule 9-6.  On February 25.Copytrack Pte Ltd. This gives rise to his principal defence to Copytrack’s claim. if any. I also asked for additional submissions on the question of whether cryptocurrency is a “good” for the purposes of the doctrines of conversion and detinue. however between February 16-23. Additional Facts  While I have set out the basic facts underlying the proceeding. namely that he no longer has control of the Ether Tokens and is therefore unable to return them. the Ether Tokens were transferred out of the Wall Wallet into five different wallets. when the error was discovered. Wall did not immediately return the Ether Tokens. 2018. the mistaken transfer of the Ether Tokens occurred on February 15.  Wall did not return the Ether Tokens. v. 2018.  As noted. but rather transferred them into a cryptocurrency trading account with a cryptocurrency exchange. He asked Copytrack to provide him with the address to send the tokens to and Copytrack provided him with its cryptocurrency wallet address. On the same date. . 2018. Wall agreed to return the Ether Tokens.
Prince Rupert (City). 9. 49.  The application under Rule 9-6 is based on the premise that the claim is factually without merit. Reg. (3d) 26 at para. If the evidence needs to be weighed and assessed. . v. Wong v.  Caution must be exercised in granting summary judgment on only a portion of a claim so as to guard against litigating in slices: Westsea Construction Ltd v.C. may determine the question and pronounce judgment accordingly. 168/2009. The onus is on the applicant to prove beyond a reasonable doubt that there is no triable issue: Metro-Can Construction (HS) Ltd. Noel Developments Ltd.. International Taoist Church of Canada at para.. at best. 21 to 26 he stated:  The City applies under Rule 9-6 of the Supreme Court Civil Rules.Copytrack Pte Ltd. Ching Chung Taoist Association of Hong Kong Limited. 40. and (d) may make any other order it considers will further the object of these Supreme Court Civil Rules. 4. It raises an issue of fact only or.C. v. v. 2013 BCSC 1465 at para.L. 2006 BCCA 500 at paras. 10. must pronounce judgment or dismiss the claim accordingly. Judgment on only a portion of the claim risks multiple appeals being heard . in which case the court "may determine the question and pronounce judgment accordingly": International Taoist Church of Canada v. Metro Motors Ltd. 2011 BCCA 149 at para.  An application to dismiss a claim that is bound to be unsuccessful weeds out unmeritorious claims and saves the heavy price of time and cost borne by the parties and the justice system: 4 Corners Properties Ltd. then the test of "plain and obvious" or "beyond a doubt" has not been satisfied and the application is to be dismissed: Skybridge Investments Ltd. a question of mixed fact and law.R. 2012 BCSC 564 (CanLII) at para.  On an application under Rule 9-6 the court is not to weigh the evidence.  In Watson Island Development Corp. v. Justice Dley provided a helpful summary of the principles governing an application under this Rule. v. (c) if satisfied that the only genuine issue is a question of law. 2015 BCSC 1474 [Watson]. (1996). 26 B. B. 20. 0759553 BC Ltd. unless the court determines under subrule (5)(c) that "the only genuine issue is an issue of law". 2013 BCSC 1926 at para. Holt. Wall Page 4 (a) if satisfied that there is no genuine issue for trial with respect to a claim or defence. At paras. Rule 9-6(5)(a) permits a court to dismiss a claim if it is satisfied that there is no genuine issue for trial. Mr. Summary judgment may be granted on all or part of a claim. Wilson. 14. (b) if satisfied that the only genuine issue is the amount to which the claiming party is entitled. may order a trial of that issue or pronounce judgment with a reference on an 2018 BCSC 1709 (CanLII) accounting to determine the amount. 2007 BCSC 1555 at para. Another way of stating the test is whether the plaintiff is "bound to lose": Pitt v. Boffo Developments (Smithe) Ltd. 8-12.
150 of the Wills. 89.  On the other hand.Copytrack Pte Ltd. 2014 BCSC 702 at para.  In addition Rule 6-2(1) states: Party Ceasing to Exist (1) If a party dies or becomes bankrupt. v. LeRoy. v. 2014 SCC 7 at para. but the claim survives. S. c. the relevant provisions of which provide: 150 (1) Subject to this section a cause of action or a proceeding is not unknown by reason only of the death of (a) a person who had the cause of action. … (8) All proceedings under this section bind the estate of the deceased person. . … (5) A person may commence or continue a proceeding against a deceased person that could have been commenced or continued against the deceased person if living. and inconsistent findings being made after further evidence has been adduced: Century Services Inc. var’d on other grounds 2015 BCCA 120.B. 2009. or (b) a person who is or may be named as a party to the proceeding. Impact of Wall’s Death  Both parties submit that Wall's death does not affect Copytrack’s claim. the proceeding may continue in spite of the death or bankruptcy of the corporate party having been wound up or ceasing to exist. whether or not a personal representative has been appointed for the deceased person. the resolution of an important part of the claim against a party may significantly impact the balance of the claim and provide 2018 BCSC 1709 (CanLII) for a timelier and cost effective approach: Hryniak v. Wall Page 5 within the same action. the Court must be satisfied that there is no genuine issue to be tried. [Emphasis added. despite any previous or subsequent appointment of a personal representative. The burden of establishing that there is no genuine issue to be tried rests with the party bringing the application. They cite s. 13. 60. findings being made in the absence of a full factual context.C. or a corporate party is wound up or otherwise ceases to exist. Estates and Succession Act.]  In order to grant summary judgment. Mauldin.
I do not accept Wall's submission that the application involves “oath against oath”.  At the hearing of Copytrack’s application. Copytrack submits further that Wall has simply made a bald and unsubstantiated assertion that the Ether Tokens were stolen by an unknown third party and that. specifically the facts relating to his failure or refusal to return the Ether Tokens and his allegation that his wallet was unlawfully accessed and that he therefore no longer had control of the Ether Tokens.  While Wall's death does not legally impact Copytrack’s claim.  I do not accept Wall's submission that there are factual disputes that make summary judgment unavailable. The essential facts underlying Copytrack’s claim are undisputed. v. . He submitted further that the proper characterization of cryptocurrency and whether the doctrines of conversion and detinue are available with respect to cryptocurrency are questions of law that cannot be answered on a summary judgment application. Specifically. It submits that it is clear on the uncontradicted evidence that the Ether Tokens were sent to Wall in error and that he has no proprietary interest in them.Copytrack Pte Ltd. particularly given that Wall's evidence about what happened to the Ether Tokens amounts to little more than a bald assertion. it does have 2018 BCSC 1709 (CanLII) certain practical implications that I will return to. Wall Page 6  I accept the parties' submissions that given these provisions. Wall submitted that the matter was not suitable for summary judgment as there are facts in dispute. Copytrack’s claim may proceed notwithstanding Wall's death. the loss of control over the tokens is not a defence given that he failed or refused to return the tokens when demand was made and while they were still in his control.  Copytrack submits that there is no bona fide issue for trial. in any event. Suitability for Summary Judgment  An application for summary judgment requires that the Court first determine whether the matter is suitable for summary determination pursuant to the principles set out by Justice Dley in Watson.
89 of its written submission.  The real issue on this application is whether the doctrines of conversion and wrongful detention apply and whether that issue can be determined on a summary judgment application.  Given the manner in which this issue was addressed at the hearing. given that the application had been fully argued in other respects. 2018 BCSC 1709 (CanLII)  Further. including the Ether Tokens. Copytrack’s submission was based on the premise that Ether Tokens are “goods”. if established. However. v. I requested additional submissions from the parties.  At the initial hearing. The submission simply assumed that to be the case. it is not clear what sending this matter to trial would accomplish since it would not result in further or better evidence on behalf of the defendant. are in fact goods or the question of if or how cryptocurrency could be subject to claims for conversion and wrongful detention. given Wall's death.Copytrack Pte Ltd. Wall Page 7 Moreover. For example. It then structured its submissions to address the elements of the test.  That issue was however raised by counsel for Wall in his oral submission. virtually in passing. who noted that there are no decided cases dealing with this point. Wall does not in his amended response to civil claim assert that he has any proprietary interest in the Ether Tokens that. would defeat Copytrack’s claim. at para. and the fact of . and submitted that it “has a better right to the goods than the defendant". it set out the elements of an action in detinue for the recover of “goods” wrongfully converted or detained. I pause here to note that it was open to the Court to simply dismiss Copytrack’s summary judgment application on the basis of its failure to address what I consider to be a critical issue. Nowhere in its submission did Copytrack address the question of whether cryptocurrency. that it "has requested return of the goods" and that the defendant has refused that request.
Copytrack Pte Ltd. crops and mineral interests. Li. customer lists. the Ether Tokens can in fact be subject to a claim in detinue based on wrongful conversion or detention. at the time the conversion and wrongful detention began. like funds or currency. v. and a unit of account. Wall Page 8 Wall's death which made a trial untenable.  In the additional submission filed on behalf of Wall. and d) They can be used as a medium of exchange. 2017 BCSC 1312 [Li]. lost and stolen. shares. the preferred approach was to permit additional submissions on this point. including funds. held in the Wall Wallet. Justice Walker in Li v. having initially staked its position 2018 BCSC 1709 (CanLII) essentially on the assumption that Ether Tokens are goods. now takes the position that a broad range of things can be subject to claims in conversion and detinue and that a determination that cryptocurrency is a good is in fact unnecessary. it is submitted that the characterization of cryptocurrency. transferred. c) They are specifically identifiable and have been traced to five wallets in which they are currently being held.  Copytrack submits that given these characteristics. 213 as a “positive wrongful act of dealing with goods. Copytrack cites various cases in which such claims have been advanced in relation to funds. and whether cryptocurrency is subject to claims . a store of value.  Copytrack points in particular to the decision of Mr. where he found that funds may be subject to a claim of conversion. stored.  Copytrack submits that the evidence establishes that the Ether Tokens have the following characteristics: a) They are capable of being possessed. Copytrack. b) They were.  In its further submission. accounts receivable. in a manner and with an intention inconsistent with the owner’s rights”. which he described at para.
the defendant submits that cryptocurrency is distinguishable from the type of specific funds dealt with in cases like Li. they were sent to Wall in error. they were not returned when demand was made and Wall has no proprietary claim to them. is a pure question of law that cannot be decided on a summary judgment application.  However. disgorgement and/or damages. However. for example. the evidentiary record is inadequate to permit a determination of that issue on this application. However. While the evidence of what has happened to the Ether Tokens since is somewhat murky. the proper characterization of cryptocurrency. it would be both unreasonable and unjust to deny Copytrack a remedy.Copytrack Pte Ltd. the appropriate remedy is therefore that set out in para. is not .  Various dictionary definitions are cited that suggest that cryptocurrency is not. it is a complex and as of yet undecided question that is not suitable for determination by way of a summary judgment application. Wall Page 9 of conversion and/or detinue. regardless of the characterization of the Ether Tokens.  In my view. in any event. Further. it is undisputed that they were the property of Copytrack.  That is the order that I am prepared to make. v. and.  In my view. as I have indicated.  In the circumstances. The balance of the relief sought in the notice of application. 1(c) of Cophytrack’s notice of application as follows: An order that Copytrack be entitled to trace and recover the 529. 2018 BCSC 1709 (CanLII) in fact. there would be no practical utility in sending this matter to trial given Wall's death. and one that informs the analysis of whether Copytrack’s claims in conversion and detinue can succeed. a “good” but rather a digital form of currency. this does not detract from the point that they should rightfully be returned to Copytrack.8273791 Ether Tokens received by Wall from Copytrack on 15 February 2018 in whatsoever hands those Ether Tokens may currently be held. including the Ether Tokens. is a central issue in this case.
to the plaintiff. Those are my reasons. “Skolrood J. (Submissions on Costs) 2018 BCSC 1709 (CanLII)  THE COURT: I am going to order costs payable.” . Wall Page 10 appropriate for summary judgment and those aspects of the application are dismissed. v.Copytrack Pte Ltd. which may ultimately be from the estate. for this application only.

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