Cologix Canada Inc. v. Path Network Inc and Path's other legal issues - Canadian data center company is suing Path Network, famous for being ran by a pedophile, not paying their bills, scamming their investors, and deplatforming the Kiwi Farms

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No, Judge Child! That's not the order! Enjoy an amended order! - The Plaintiff
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Sooo, what's their reasoning for no childing the Judge? Well, Path insider apparently emailed them inside deets on Path.

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Path also sent a message to their Discord Kittens, because if you commit a crime the best strategy is to make as many people aware as possible (I guess)

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Much of the hardware at issue was seized by " PhoenixNAP and other datacenters"
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Also:

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Request:
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Attachments

Path counterclaimed for breach of contract, "specific performance", and declaratory judgement
That's a weird counterclaim. As far as I can tell, the only breach they are alleging is that Data Sales didn't give them a buyout quote for 2 months, and then got pissy over past-due payments. If that breached a specific clause, like "DS will respond to all queries within 5 business days", Path would have quoted it; instead they just have a generic claim that this means DS didn't act "in good faith".

More relevant to Path haters, this doesn't sound like a healthy business:

25. In a separate email, on November 26, 2024, Data Sales told Path that it had outstanding payments totaling $285,396.46 through December 31, 2024.
35. Path informed Data Sales that it was attempting to raise equity capital to satisfy the past due amounts.

You're supposed to raise equity capital to expand, not to dig yourself out of an ongoing debt. How bad is their business that the services provided by the lease don't pay for the lease itself?

39. On April 10, 2025, Data Sales requested same-day payment, demanded investor access, claimed more than $3 million was outstanding, and threatened it would bankrupt Path.
40. Around April 15, 2025, Path notified Data Sales that it was hoping to get a $500,000 capital infusion from investors to satisfy the arrears.

After 4 months of searching around, Path couldn't get an investor bailout of a mere $500k. :story:

Also, I don't know if there's legal significance to it, but Path admitting it made multiple payments and was trying to raise money indicates that they did know they were behind for tons of money. Otherwise they would have challenged the amounts and filed a lawsuit themselves. You don't make 8 "interim payments" then run to raise capital for charges you do not believe are real.
 
If that breached a specific clause, like "DS will respond to all queries within 5 business days", Path would have quoted it; instead they just have a generic claim that this means DS didn't act "in good faith".
All contracts carry what is called the "implied covenant of good faith and fair dealing." Path's argument either borders on or actually is frivolous, since nothing they describe comes close to the high bar for establishing such a violation.

While a violation of an explicit clause in the contract generally also violates the implied covenant, in such a case you usually see a reference to the explicit provision, so a claim of a breach of the implied covenant absent a specific provision has to get over a high bar to qualify.
 
While a violation of an explicit clause in the contract generally also violates the implied covenant, in such a case you usually see a reference to the explicit provision, so a claim of a breach of the implied covenant absent a specific provision has to get over a high bar to qualify.
I think they're trying to say DS gave them conflicting numbers and arbitrary deadlines, in an attempt to force Path into breach. But I notice they never mention their own regular payments to DS, or DS's regular invoices, etc. Even if you take everything Path claims in the most favorable light for them, the best you arrive at is DS had a slow response resulting in delayed ability to buy out the leases, and even then Path seems financially unable to exercise that option anyway.

Like you said, there's a high bar to prove "bad faith", but here Path doesn't even demonstrate DS's slowness was done intentionally.
 

TL;DR Data Sales says Path wasn't entitled to any buyout because they were behind on payments. If they can show that with Accounts Receivables receipts and the relevant contract clause, that wipes out basically everything in Path's counterclaim. In fact I'd say filing that counterclaim should be sanctionable as a filing in bad faith, if the buyout was so obviously not an option for Path that it couldn't become the basis for a claim of breach against DS.
 
Greer ass litigation

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No, but seriously, did Path look at the bullshit Greer is pulling with the TRO and go, "Wow! He's a genius! We should copy that!"
 
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