Metropolitan-Toronto Condominium Corporation No. 1101 v. Ontario New Home Warranty Program (Divisional Court)

The corporation had arrived at a settlement – and signed releases – with the builder. The corporation asserted, however, that the releases did not affect the corporation’s rights as against the Ontario New Home Warranty Program. The corporation relied upon the decision of the Ontario Court of Appeal in the case of Mandos v. Ontario New Home Warranty Program.

The court ruled that the releases did apply to the corporation’s claims against the Ontario New Home Warranty Program.

The court said that the reasoning in the Mandos case did not apply where:

• The defects were known at the time of the release;
• The claimant received compensation related to the defects;
• The claimant understood the release. (The court noted that the corporation was assisted by legal counsel during the drafting of the release.)