Balagula v. Ontario Consumers Home Services
2018 ONSC 5398
Court
Ontario Superior Court of Justice — Divisional Court
Year
2018
Citation
2018 ONSC 5398
Topic
NOSI lien-registration and buyout clauses unenforceable — $17,334.09 recovered
The facts
Iosif Balagula signed two rental contracts with OCHS for a carbon filter and an air conditioner. He sold his home ten months later and discovered OCHS had registered NOSIs on title without telling him. He paid $17,334.09 to discharge the NOSIs at closing, then sued to recover.
The holding
On appeal, Justice Conway upheld the trial judge's finding that the lien-registration and buyout clauses were onerous terms buried in fine print, were never specifically drawn to the consumer's attention, and were therefore unenforceable. The full $17,334.09 reimbursement was upheld.
Why this matters for Ontario homeowners
Onerous lien-registration and buyout clauses must be specifically drawn to the consumer's attention to be enforceable. Where a homeowner has paid an inflated NOSI buyout under closing pressure, those costs are recoverable in court. This is the leading authority on 'unwary consumer' / contracts-of-adhesion reasoning in HVAC rental disputes.
Read the full reasons on CanLII: https://www.canlii.org/en/on/onscdc/doc/2018/2018onsc5398/2018onsc5398.html
This case summary is for general information only. It is not legal advice. Outcomes in your situation depend on the specific facts of your case.
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