Capelet v. Brookfield Homes (Ontario) Limited, 2018 ONCA 742

The Appellant purchased a home designed and constructed by the Respondent in 1997. He discovered mould in the home in 2002 which was caused by water leakage as a result of faulty construction. The mould was promptly remedied and the house was sold with no loss of value. The Appellant’s action was limited to damages for his psychological and emotional injuries and certain out-of-pocket expenses. The motion judge dismissed the action following a summary judgment motion. While he assumed for the purpose of the motion that the Appellant had suffered considerable mental distress flowing from the discovery of the mould and that his current emotional issues were attributed to that discovery, the motion judge concluded that the claims of emotional injury were not a reasonably foreseeable consequence of faulty home construction by the Respondent and were not recoverable as a matter of law. The Ontario Court of Appeal upheld this decision.