$8M lawsuit alleges defects in Mike 'Holmes approved homes'

It was a housing project with promise: a subdivision of unique homes in picturesque Meaford, Ont., advertised as "Mike Holmes Approved."

Mike Holmes is a contractor and television personality known for rescuing homeowners from botched construction jobs.

In 2016, Myles Johnson and Andrea Hart of Toronto, who were looking for a place to retire, bought in.

"We trusted the name," said Hart, 65. "A Mike Holmes-approved home."

Holmes helped promote the development, TerraceWood, which included appearing on a billboard in Meaford.

In a YouTube video, Holmes praised the project's builder, Third Line Homes, saying it builds homes with "mould and moisture resistant walls," and "a commitment to make it right."

But things didn't go right, according to Hart and Johnson. The couple said after their home was finished in 2018, they discovered it was riddled with defects — including mould and structural problems — which they say the builder didn't adequately address. 

"It's been a nightmare," said Johnson, 70. "[Our retirement plans] just sort of imploded and you just sort of say, 'What in hell happened?'"

According to allegations in a lawsuit filed in Ontario Superior Court, "The TerraceWood Project involved a perfect storm of errors and neglect by multiple parties" involved in the creation, inspection and/or promotion of the development.

The suit was filed in December 2021 by Tarion, a consumer protection organization established by the Ontario government to help ensure new homes' defects under warranty are repaired.

Tarion alleges 14 TerraceWood homes were built with numerous deficiencies, such as mould problems due to leakage, HVAC issues, and major structural flaws, "many of which raise serious safety concerns."

The suit targets The Holmes Group [Holmes's company]; Mary-Jo and Paul Osborn, principals with Third Line Homes; the Municipality of Meaford, plus a dozen parties involved in the design or construction of TerraceWood between 2015 and 2019.

Tarion claims Third Line Homes failed to remedy the problems with the house, which were under warranty. As a result, said Tarion, it has been footing the bill to fix them. It's seeking damages estimated at more than $8 million from the defendants to recoup its costs.

None of the allegations have been proven in court.