The appellants appealed a decision by Tarion Warranty Corporation regarding a breach of warranty claim for water penetration in their home's foundation.
Tarion had paid $115,544 to a contractor for repairs that failed to resolve the issue, and offered the remaining $124,336 up to the $300,000 statutory limit.
The appellants argued the contractor payment should not count towards the limit as they received no benefit.
The Licence Appeal Tribunal held that under section 14(6) of the Ontario New Home Warranties Plan Act, the amount paid by Tarion for repairs must be included in calculating the statutory limit, and ordered Tarion to pay the remaining $124,336.
