Ontario’s homebuyer protection agency is suing a developer to recoup tens of millions of dollars it has paid to purchasers who lost deposits on homes that were never built.

In two separate lawsuits filed in February, Tarion is seeking at least $87 million in damages the agency says it has suffered in compensating more than 900 StateView Homes purchasers.

The litigation marks a new low in the tumultuous collapse of StateView, which in just three years went from a rising star to being embroiled in scandal and insolvency. In May, Ontario’s Home Construction Regulatory Authority charged seven StateView companies and their three executives in “the illegal sale” of hundreds of pre-construction homes across the Greater Toronto Area.

In its lawsuit filed Feb. 12, Tarion sued three StateView

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