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Two developers have won a massive award as a result of building inspection errors by the staff of the resort village of Bobcaygeon, Ontario in the 1990s.
The plaintiff developers had obtained guaranteed financing for the construction of four rental buildings. During the final phase of construction, serious building code infractions were found in all four structures. Tenants left, and when the project went into receivership, the lender foreclosed on its mortgage and tied up the other assets of the guarantors.
The court found that the building code violations were so numerous that the building inspector could not have conducted proper inspections during construction.
The court rejected the defendant's argument that the developers had partially contributed to their loss. Instead, the court found the village, which is now part of the City of Kawartha Lakes, solely responsible for the developer's loss.
According to Lawyers Weekly, the lawyer who represented the village's insurer has recommended an appeal.
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