Homeowner says she’s out $381K after hiring Ottawa contractor to renovate kitchen

An Ottawa couple says they’ve lost out on more than $381,000 after hiring a construction contractor to renovate their kitchen — citing delays, lack of inspections and oversight, and ultimately "poor" workmanship that they say ended up flooding their kitchen and basement within weeks of the project’s completion. 

"It was devastating," said homeowner Katy Alp. 

Alp said she hired Giuseppe "Joey" Peloso, who runs Magnolia Design & Build, also known as Magnolia Construction, in 2023.

The couple paid $117,064.80 to Magnolia to demolish and renovate their outdated kitchen, according to a civil lawsuit they have since filed. Work began in March 2024 and ran until October 2024.

But about six weeks after Magnolia finished the project, the couple came home from a weekend trip to find a plumbing connection to the sink supply line had "failed," said Alp.

"There was water running everywhere through our kitchen.… Our basement had about three inches of water in it, from corner to corner,” she said.

Her kitchen and basement eventually had to be redone.

"It was heartbreaking," Alp said.

In their August 2025 civil claim, Alp and her husband Kaveh Afshar-Zanjani estimate damages at $381,979.02, plus punitive damages. That includes their payment to Magnolia, costs to hire other contractors to remediate and redo renovations, loss of belongings, and finding another place to live while the work was being redone. 

Multiple separate lawsuits have been brought against Peloso and Magnolia in recent years. Plaintiffs include customers, subcontractors, investors and businesses, a tenant, and even two foreign entities: the Embassy of Niger and the Republic of Austria. 

Peloso declined an interview. Through Ottawa public relations agency Syntax Strategic, Peloso wrote that he takes clients' concerns seriously, but that legal disputes arise in "rare cases.”

"It is regrettable but a reality of the construction industry that when dealing with a high volume of renovations, multiple trades, suppliers, and custom-fabricated materials, disputes can arise from time to time," Peloso wrote.

The couple's claim states that upon investigation, the couple discovered Magnolia's work was "entirely deficient and failed to meet the contractual and regulatory requirements including the Ontario Building Code."

Peloso and his company filed a notice of intent to defend on Nov. 19.