Why HGTV Star Mike Holmes Was Named In A Lawsuit In Canada

With a last name like Holmes, Mike Holmes seemed destined for HGTV stardom, and indeed, his show "Holmes on Homes" was pretty successful. The Canadian went on to film other building and renovation-centered shows, like "Holmes Family Rescue," but perhaps one of his greatest accomplishments was being recognized in Canada's House of Commons, the nation's lower body of parliament, for his contributions to furthering skilled trades and bettering building standards. The licensed contractor boasts nearly four decades of experience, meaning he knows a thing or two about safety and building codes.

That's what makes the lawsuit against him, brought by Tarion, a government-backed agency designed to protect consumers, so surprising. The suit, filed in the Ontario Superior Court in December 2021, named more than just Mike Holmes and his company, The Holmes Group, but his involvement was especially concerning. Tarion detailed how an Ontario housing project was disastrously unsafe for residents, with some houses being so dangerous that the only solution was to tear them down. The Meaford, Ontario project, named TerraceWood, began in 2015 as a "Holmes Approved" establishment (the term refers to Mike's label of buildings that go through his inspection program). According to his website, the thorough process entails "integrating the right building products with the right technology, using the right building practices to build you a home that goes beyond residential standards, from construction to final inspection."

However, according to Tarion and TerraceWood homeowners, these residences didn't meet the most basic standards.

The project's chief builder, Third Line Homes, also convinced buyers that their houses would be built to the best standards. But two of those owners, Myles Johnson and Andrea Hart, told CBC, "It's been a nightmare," continuing, "We trusted the name, a Mike Holmes-approved home." Instead, their dream retirement oasis reportedly has structural problems and a severe case of mold. The lawsuit states, "The TerraceWood Project involved a perfect storm of errors and neglect by multiple parties," citing things like leaks, structural issues, and installation problems, "many of which raise serious safety concerns."

Although Holmes didn't build the houses, his company and brand heavily promoted the TerraceWood project. In addition, the lawsuit argues that Holmes' company did not perform the promised inspections, or at least not thoroughly.

The $8 million lawsuit contains a lot of back and forth about what really happened with Holmes, because the "Holmes Approved Homes" brand was seemingly applied, which means, according to Holmes' website, that each house was inspected with Holmes' standards in mind. But CBC reports that Holmes only offered his inspections as an upgrade that wasn't purchased by any residents. Beyond that, Holmes claims he didn't promote Third Line Homes and "had no involvement whatsoever" with TerraceWood, according to Heavy. A promotional post made to X, formerly Twitter, seems to show otherwise. Ultimately, Third Line Homes lost its license to build in Ontario and became insolvent in 2019.

Despite the messy lawsuit, widely circulated in the Canadian news, Mike Holmes continues to promote his brand, host television shows, and face legal troubles for the TerraceWood project. In February 2024, commenters on his Instagram page still talked about the lawsuit, regardless of the post's content. "I just watched a show where Mike Holmes houses are being torn down, he backed them, he invested in them, he put his name on them but he's not standing up and doing the right thing for all the homeowners," read one. Holmes finally released a statement on his Facebook on February 1, 2024, that states his company had "no access to any of the homes" going on to say "I continue to stand proudly by my name and reputation," via a copy obtained by CBC.

Nevertheless, "Holmes Family Rescue" season 2 premiered in June 2023, in which Mike's son and daughter, Sherry and Mike Holmes Jr., join him to help homeowners who were the recipients of improper or poor construction practices and are now struggling to get their residences safe, beautiful, and livable again. The airings of the episodes where Mike vows to "make it right" rubbed many the wrong way in light of his legal troubles. 

Meanwhile, TerraceWood homeowners, who may not have purchased the inspection upgrade but definitely assumed their house was "Holmes Approved," are still going through repairs and renovations, telling CBC, "It's worn us down. It's exhausting. I just want to get the h*** out of here."