The plaintiff builder sued the defendant homeowners for unpaid extras and registered a construction lien.
The homeowners counterclaimed, alleging the builder breached the contract by unilaterally altering the HVAC design, installing a defective hydronic heating system, and delaying possession.
The homeowners also brought a third-party claim against Tarion for failing to properly investigate their warranty claim.
The court found the homeowners liable for $57,189 in unpaid extras.
However, the court also found the builder breached the contract by substituting the HVAC system without approval, awarding the homeowners $45,106 in damages (subject to deduction for a prior Pierringer settlement).
Finally, the court held that Tarion breached its statutory obligations by failing to investigate the unauthorized substitution, making Tarion jointly and severally liable for the homeowners' damages.
