The appellants purchased a new home and made claims under the Ontario New Home Warranties Plan Act for construction defects.
Tarion denied some claims, and the appellants appealed to the Licence Appeal Tribunal.
During the appeal process, the appellants defaulted on their mortgage, and the home was sold under power of sale.
The Tribunal dismissed the appeal, finding that the appellants lost standing to pursue the warranty claims when they ceased to own the home.
The Divisional Court upheld the Tribunal's decision, confirming that the statutory warranty runs with the land and that the appellants' claim for damages for diminution in value constituted excluded secondary damage.