Port of Newcastle Residents

Thomson Rogers has issued a Class Action lawsuit on behalf of homeowners within the Port of Newcastle subdivision, in Newcastle, Ontario, who allege to have been mislead by the subdivision developers, lead by the Kaitlin Group Ltd.

The claim seeks millions of dollars in compensation from the developers relating to their alleged failure to abide by their promise to provide a golf course within the subdivision and to provide free lifetime access to an extensive clubhouse facility. The lawsuit claims that the homeowners are entitled to the profit/savings of the subdivision developers relating to these alleged misrepresentations.

Anyone owning property developed by the Kaitlin Group Ltd. within the Port of Newcastle subdivision prior to October 5, 2007, may qualify as class members within the class action.

See below under Related Documents to review a copy of the class action Statement of Claim that was filed on December 17, 2007.


UPDATE (December 13, 2017): 

In a decision released December 8, 2017, Justice Morgan of the Ontario Superior Court of Justice approved a settlement of this class proceeding.

You may qualify for compensation if you purchased a free-hold home directly from either Kaitlin Group Ltd. or 1138337 Ontario Inc. in the Port of Newcastle on or before October 5, 2007.

Under the settlement, there will be a pro rata distribution of the net settlement funds of $101,355.00 ("net settlement") to all Class Members who deliver a claim form to Thomson Rogers by no later than March 31, 2018. It is expected that each class member will receive between approximately $200 and $300. However, the exact amount will depend on the number of claim forms that are submitted.

In addition, Class Members will be eligible to receive (upon delivery of a claim form), a free lifetime membership to the Admiral's Walk Clubhouse in the subdivision. Class Members will be entitled to one free transfer of that lifetime membership to any purchaser of your home. Class Members who have not transferred or exchanged their memberships, or opted out of the Class Proceeding will be entitled to the membership.

To apply for a pro rata distribution of the net settlement, you must complete and return a claim form to Thomson Rogers by March 31, 2018. You must also attach to your claim form a copy of your Agreement of Purchase and Sale (or some other= similar documentation evidencing the purchase of the home and sale in the subdivision) between you and either Kaitlin Group Ltd. or 1138337 Ontario Inc.

If you do not return a claim form by March 31, 2018, you will be forever barred from advancing any claim in respect of this matter (unless you opted out of this Class Proceeding prior to May 29, 2009) and you will not be eligible to receive any of the net settlement funds or the free lifetime membership.

The Claim form, Court Approved Notice, and the decision of the Court are attached below:

  1. CLAIM FORM which must be completed and received by Thomson Rogers by March 31, 2018, along with a copy of your Agreement of Purchase and Sale
  2. SETTLEMENT NOTICE
  3. REASONS OF JUSTICE MORGAN dated December 8, 2017

UPDATE (November 12, 2015):  

Please note that the scheduled trial date has been adjourned while the parties explore settlement negotiations that address the corporate defendant's claimed impecuniosity. A further update will be provided in the New Year.


UPDATE (August 30, 2012):  

On July 30, 2012, the Honourable Justice Perell of the Ontario Superior Court of Justice heard the Defendants Motion for summary judgment seeking to have this class action dismissed for being statute barred under the Limitations Act. Justice Perell dismissed the Motion on the basis that this issue could not be decided in common for all Class Members and on the basis that the issue was not a certified common issue in the class action.


UPDATE (May 2007):  Information Session for Port of Newcastle Residents
In an effort to answer any question relating to the Notice of Certification regarding the class action against the Kaitlin Group Ltd., Thomson Rogers will be holding an information session on Thursday, May 21, 2009, at the Newcastle Community Hall located at 20 King Avenue West, Newcastle from 7:00 p.m. until 8:00 p.m.

On December 15, 2008, the Honourable Mr. Justice Perell of the Ontario Superior Court of Justice certified a class action in this matter. Click here to see the Official Certification Notice.

The class will be comprised of all those that purchased homes in the Port of Newcastle Subdivision from the Kaitlin Group Ltd. or 1138337 Ontario Inc. on or before October 5, 2007.

The common issues that have been certified relate to whether these Defendants made golf course and clubhouse misrepresentations (as set out in the Statement of Claim that has been filed) and whether those alleged misrepresentations caused damages to the class (and/or whether the class is entitled to the profits earned by these defendants as a result).

Notice will soon be provided to all class members in accordance with further directions to be provided by the Court.

Further information will be posted as it becomes available.

For More Information

If you would like to learn more about this class action, contact Darcy Merkur by email at [email protected] or call our toll-free number 1-888-223-0448 (or 416-868-3176 if you are calling from within the Toronto area).

If you are or were a homeowner within the Port of Newcastle subdivision developed by the Kaitlin Group Ltd. and wish to be included in our Port of Newcastle Residents database, please fill out the form below.

Port of Newcastle Residents FAQs

What is this action about?

This action was brought on behalf of purchasers of homes from the Kaitlin Group (“Kaitlin”) and/or 1138337 Ontario Inc. within the residential community known as the Port of Newcastle (the “Subdivision”). Condominium owners are not in the class.

This claim seeks millions of dollars in compensation from the Subdivision’s developers relating to their alleged failure to abide by their promise to provide a golf course within the Subdivision and to provide free lifetime access to a clubhouse facility as structured in the community.

When was this proceeding initiated?

This claim was issued on December 17th, 2007.   A copy of the Claim is on our website.

Has This Class Action Been Certified?

Yes. This class action was certified by Justice Perrell of the Ontario Superior Court of Justice on December 10th, 2008.  A copy of the Order is on our website.

Who is Eligible for this class?

This class has been defined by the certification order of Justice Perell as:

“All persons purchasing freehold homes directly from the Defendants, the Kaitlin Group Ltd. and/or 1138337 Ontario Inc., within a residential community known as the Port of Newcastle, located in Newcastle, in the Municipality of Clarington, in the Region of Durham, Ontario (the “Subdivision”) on or before October 5, 2007, excluding, for clarity, condominium purchasers within the Subdivision and purchasers of homes and/or properties on adjacent land developed by Kylemore Homes Ltd. and/or Kylemore Communities (West Village) Ltd. and/or Kylemore By the Lake Ltd. and/or another related company operating under the name of Kylemore Communities.”

Who is the representative plaintiff?

This action was commenced by the representative plaintiff Jean-Marc Haddad who initially purchased a home in the Subdivision, on or about May 31st, 2001.  Bob Phippard has also been added as a representative Plaintiff.

Who are the Defendants?

The Defendants are Kaitlin and 1138337 Ontario Inc.

What are the allegations?

It is alleged that class members all relied on marketing materials and representation by the Defendants that a nine hole executive golf course and large clubhouse with free lifetime membership were to be built in the Subdivision. It is alleged that the marketing information was inaccurate, incomplete, false, deceptive and/or misleading.

If I fit the class definition, am I a class member?

Yes, unless you opted out of the class action you will be bound by the terms of any judgement or settlement in the class action which, of course, must be approved by the Court. The opt-out date for this class action was May 29, 2009. If you did not opt-out by that date, you will be entitled to share in the amount of any award or settlement recovered in this class action.