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Tarion

Yildirim v. Tarion Warranty Corporation 2019 Ont SCJ (Div Ct)

Tarion provides statutory warranties of fitness for new homes regardless whether a builder registers under the program or not. In this case, the vendor, who should have registered, did not. The vendor was convicted of a breach of the Ontario New Homes Warranties Act. Tarion ultimately paid the homeowner $17,000 as compensation for constructions deficiencies. After Tarion paid the homeowner, it commenced an action against the vendor for reimbursement of the $17,000. The vendor asserted, as his only defence, that he should have been given notice of Tarion’s decision to pay and been allowed to appeal that decision to the Licence Appeal Tribunal. The Small Claims Court judge, and on appeal the Divisional Court, disagreed with that position.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.