The plaintiff, Tarion Warranty Corporation, brought a subrogated claim against an unregistered corporate vendor and its sole director for amounts paid out of the guarantee fund to purchasers of a new home.
The defendants argued they were not liable because they were not registered under the Ontario New Home Warranties Plan Act, and counterclaimed that Tarion was negligent for failing to warn them of the registration requirement.
The Superior Court of Justice held that the failure to register did not relieve the corporate vendor of its mandatory warranty obligations.
The court pierced the corporate veil to hold the individual director personally liable, finding he knowingly concurred in the breach.
The counterclaim was dismissed as the defendants failed to establish any duty of care or duty of fairness owed by Tarion.
