$32M Case Against Ontario Developer Collapses
Ontario’s Home Construction Regulatory Authority (HCRA) has dropped all counts in what was set to be its largest-ever case — a $32 million action against Briarwood Development Group, accused of coercing buyers into paying inflated prices for pre-construction homes.
The regulator’s discipline committee dismissed or withdrew every count last month after finding the HCRA failed to present sufficient evidence to support its allegations.
Briarwood’s lawyers called the ruling a “complete vindication,” saying the company had acted “ethically and transparently.” But many buyers say the decision exposes serious weaknesses in Ontario’s homebuilding oversight.
“This is a horrible precedent for future buyers,” said Toronto real estate lawyer Bob Aaron. “People need confidence that what they sign for is what they’ll get.”
Background: $18M in alleged overpayments
The case centred on 142 pre-construction buyers across Stayner, Angus, Quinte West, and Georgina, who claimed Briarwood demanded additional payments — totalling more than $18 million — after contracts had already been signed.
The HCRA accused the developer of breaching Ontario’s New Homes Construction Licensing Act, which requires builders to treat buyers “fairly, honestly, and with integrity.” If found guilty, Briarwood could have faced fines exceeding $32 million.
Briarwood maintained that the price increases were necessary due to pandemic-related supply chain issues and construction cost spikes.
HCRA’s case collapses
During hearings, the regulator’s arguments quickly unraveled. Its expert witness was disqualified for lacking relevant residential construction experience, and its investigators admitted they had not contacted most of the 142 buyers directly.
HCRA’s acting manager of inspections, Justin Vetro, confirmed under questioning that he hadn’t personally spoken with the majority of affected purchasers.
As a result, Briarwood’s lawyers filed a non-suit motion to dismiss 128 counts for lack of evidence — a motion the committee accepted. The remaining 14 counts were withdrawn days later as part of a confidential resolution.
“It was surprising to see [HCRA] take such an aggressive position when they had no witnesses for most of their allegations,” said defence lawyer Justin Nasseri.
Regulator under fire
Following the outcome, critics accused the HCRA of mishandling the case and failing to protect homebuyers.
“They dropped the ball very badly,” said Aaron, who represents some Briarwood buyers.
The regulator declined interview requests but said in a statement that it “followed the process diligently” and will apply “lessons learned” to future cases.
NDP MPP Tom Rakocevic, critic for public and business service delivery, said he was “shocked and disappointed,” urging the province to strengthen consumer protections.
“How do they not have sufficient evidence?” Rakocevic asked. “Perhaps they need new leadership or investigative capacity.”
Buyers left in limbo
For many, the ruling means years of uncertainty continue.
Jagat Patel, who refused to pay an additional $175,000 for a home in Stayner, says six years later, his house is still unfinished.
“I was hoping the regulator would force them to honour the contract,” he said. “Now, I don’t know where to turn.”
The HCRA confirmed it cannot take further action now that the proceedings are complete. Briarwood has not responded to Patel’s recent emails.
Patel says his only option may be to sue. “We might have to litigate — but we can’t afford it,” he said quietly.
