Part 50 published on 01/05/15
Provincial guarantee fund liable for damages for defects in work completed by renovation contractor at three condominium complexes
The Garantie is an association, funded by its members, which provides guarantees and remedies to clients of its registered members for defects related to renovations. In this case, three Syndicats commenced ten claims (which were joined to be heard in one case) against the Garantie, seeking relief for damage caused by water penetration following work completed to fix unit balconies.
The three Syndicats had hired Renovapro Inc. to fix balconies. The projects were insured with the Garantie. In July of 2010, defects with respect to the work were discovered. The defects were not remedied. In August of 2011, it was discovered that water was infiltrating the walls adjacent to the balconies, resulting in rot and deterioration. As a result, all of the balconies had to be redone. At this time, August 2011, the Syndicats submitted their claims to the Garantie. The claims were rejected. The Garantie took the position that the claim for defective work was out of time, since claims were required to be submitted to the Garantie within six months of discovery. As for the rotten walls, the Garantie took the position that the renovation contracts did not include work to replace rotten wood.
The Court found that the renovation contracts required Renovapro Inc. to remove between 24 and 48 square feet of material on the walls surrounding the balconies. Renovapro Inc. did not complete this work. Had this work actually been completed, Renovapro Inc. would have discovered the rotten wood. Pursuant to the terms of the contract, Renovapro Inc. would then have proceeded to replace the rotten wood, at that time, at an agreed upon hourly rate. Accordingly, the Court concluded that the failure of Renovapro Inc. to replace the rotten wood did fall within the terms of the Garantie.