Facing an unfinished or botched home renovation can be incredibly stressful. Sadly, it’s a scenario that too many homeowners find themselves in.
The good news is, if you’re in this unfortunate situation in Ontario, you have a few options.
Keep reading to learn from JuriGo about dealing with difficult contractors and the law!
And if you are looking for the best civil litigation lawyer near you, simply fill out our form – it’s a free and easy way to connect with a professional.
What you should consider before suing!
Review the contract and collect evidence
A contract is the foundation of the agreement between you and the contractor. In Ontario, as in many other places, a contract doesn’t necessarily need to be a formal written document to be valid .
Verbal agreements, or even handshakes, are binding too, but it will be more challenging to prove their existence without solid evidence like text messages, written quotes, or proof of payment.
When reviewing the contract, think about what the contractor agreed they would do, how you both agreed the finished job would look, and whether you agreed on a way to settle any disagreements.
For instance, did they only agree to renovate the kitchen floors, or were other areas also mentioned?
Make sure you keep all your contracts, any written communication, photos and videos of the work, financial proof, as well as any professional opinions from inspectors or other contractors.
This information will be useful if you end up in front of a judge…
Send a letter of demand
This isn’t just an angry text or a frustrated call. It’s a serious letter that explains what went wrong and what you want fixed.
It should include a deadline to make things right, whether that is compensation, a refund, or asking for the work to be completed to a certain standard.
Ensure the letter concludes with a subtle yet firm indication of your willingness to take legal action if a resolution isn’t reached.
Open the door to settlement
Once the demand letter is sent, see if there’s a chance to sort things out without involving the courts. You could sit down with the contractor to explore whether there’s a path that can lead to a satisfactory outcome between both parties.
If these talks feel like they’re going nowhere, a lawyer can step in to negotiate more formally.
Let JuriGo help you find the perfect lawyer to negotiate a settlement that works for you!
Proceeding with a lawsuit instead? Here’s what you need to know!
If you’re thinking about taking legal action against a contractor in Ontario, it’s important to understand the steps involved in filing a lawsuit.
Remember, this is a serious undertaking, and seeking legal counsel is always recommended for advice and representation .
Ontario has robust laws designed to protect homeowners in these situations
There are laws in place that not only define your rights but also provide specific remedies that could serve as the basis for your claim if you sue your contractor.
Protecting consumers
Under the Consumer Protection Act , consumers have rights to honest and fair dealings. For instance, any service provided should meet a reasonable standard of quality as per the agreement between the consumer and the supplier .
Additionally, a contractor can’t demand payment for goods or services that were not ordered, even if the consumer used those goods or services.
The Act also protects consumers by prohibiting false, misleading, or deceptive representations , such as falsely claiming a service or repair is needed or falsely stating that services have certain qualities.
It is also considered an unfair practice to make an unconscionable representation, including taking advantage of a consumer’s language barrier or other impairments, as well as pricing services much higher than they should be.
If a consumer enters an agreement with a contractor while or after an unfair practice has occurred, they can cancel the agreement and are entitled to any legal remedies, including damages.
However, if cancelling the agreement is not possible because the services have already been provided, the consumer can recover any excess amount paid or damages.
Other legal safety nets for construction disputes
The Construction Act , is another law that is particularly relevant for construction disputes.
Under this Act, if the work is mostly done and you can use your space for its intended purpose, it’s considered to be substantially performed . However, if there’s a small defect or a bit of work left that doesn’t cost much to fix or complete, the contract could be deemed to be completed.
This law also details how a proper invoice should be issued, which is crucial for establishing what work was agreed upon and whether it has been completed satisfactorily.
The Act also mentions liens and holdbacks, which are financial provisions to ensure that contractors are paid, and can also be used as leverage to have unfinished or incorrect work completed or corrected.
What if the contract has to do with the construction of your new home?
When it comes to new homes, the New Home Construction Licensing Act, offers another layer of protection by requiring all builders to be licensed and meet all prescribed requirements .
It also specifies the need to include all terms or conditions when a builder enters into a contract with a new homeowner , and prohibits contractors from making false, misleading, or deceptive claims in their advertising, documents, or other materials.
Similarly, the Ontario New Home Warranties Plan Act , requires contractors to warrant the owner that the home is free from defects in their material and constructed in a workmanlike manner.
It also allows homeowners to claim a refund from their guarantee fund (which is the excess of payment made over the value of work and materials provided) if the builder fails to substantially perform the contract.
Where should you file your lawsuit?
| In Ontario, if your claim is for $35,000 or less, you should file the lawsuit in the Small Claims Court , which is a faster venue for resolving disputes. |
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For claims over this amount, you would turn to the Ontario Superior Court of Justice , which handles more complex cases and can award larger sums.
JuriGo recommends that you have a legal professional on your side!
A lawyer can advise you on the nuances of the legislation and help you build a strong case by pinpointing which provisions have been breached.
They will also guide you through the intricacies of the legal process, from drafting a Statement of Claim to presenting your case in court.
Find the right legal guidance by completing JuriGo’s form below! Our service is completely free of charge and without any obligations!