The appellant condominium corporations appealed a Licence Appeal Tribunal decision disallowing their warranty claims against the Ontario New Home Warranty Program.
The appellants argued that under s. 13(6) of the Ontario New Home Warranties Plan Act, statutory warranties continue in force despite any agreement to the contrary, rendering their previously executed releases with the builder unenforceable.
The Divisional Court distinguished prior case law, noting the releases were executed by sophisticated parties with legal advice to settle a known, properly filed warranty claim.
The Court held that the Act encourages settlements and does not bar parties from settling claims in exchange for a release.
The appeal was dismissed.
