The defendants, K-Tech Building Systems Inc. and its president Stanley Kondrotas, were charged with five offences under the Consumer Protection Act, 2002 arising from their agreement with Bonnie Engel to construct a prefabricated cottage on her property.
The charges included making false, misleading or deceptive representations regarding material ordering and delivery, making an unconscionable representation, failing to provide a future performance agreement with prescribed requirements, and failing to refund payment within 15 days of cancellation notice.
The court found that the Consumer Protection Act, 2002 applied to the transaction despite arguments that the Ontario New Home Warranties Plan Act should govern.
The defendants were convicted on four of five counts after failing to establish the due diligence defence.
The court found that the defendants' failure to include a completion date in the agreement created a situation where the consumer had the right to cancel after 30 days, and the defendants failed to meet their obligations under consumer protection legislation.