The plaintiffs purchased a cottage property in the Township of Lake of Bays in 1999. The previous owner/seller had built the cottage between 1989 and 1991. The Township performed inspections around the time of the build. The plaintiffs initiated renovations to the cottage in 2012. During the renovation process, several latent defects were discovered and the plaintiffs sued the Township for negligence regarding its performance of inspections under the Ontario Building Code, 1986. Following a trial, Justice Sutherland accepted the plaintiffs’ position and ordered the Township to pay damages totaling $360,000.00. In so doing, the court found that the Township owed duties of care not only to owners at the time of inspection, but also subsequent owners of the property.
The plaintiff discovered deficiencies in his home and sued the former homeowner/builder and the local municipality for damages arising from breach of the Ontario Building Code and negligence. The defendants crossclaimed against each other. The plaintiff obtained judgment against the defendants. Only some of the damages were subject to joint and several liability as between the former owner and the Town, with matters not subject to the Town’s inspection only being payable by the former owner. The plaintiff was awarded $5,000.00 in general damages for stress of dealing with remedial construction. The Town was given judgment in full against the former owner on its crossclaim. The defendants were not entitled to a deduction of the amount the plaintiff received from his homeowner’s insurance.