An Ottawa couple is seeking over $381,000 in damages after hiring contractor Giuseppe "Joey" Peloso and his company, Magnolia Design & Build, for a kitchen renovation that allegedly resulted in significant flooding. Homeowner Katy Alp described the experience as "devastating," stating that the project, which began in March 2024 and was completed in October 2024, was marred by delays, inadequate inspections, and poor workmanship. The couple paid $117,064.80 for the renovation, but just six weeks after completion, they returned from a weekend trip to find their kitchen and basement flooded due to a failed plumbing connection. "There was water running everywhere through our kitchen. Our basement had about three inches of water in it, from corner to corner," Alp said. In their civil lawsuit filed in August 2025, Alp and her husband, Kaveh Afshar-Zanjani, estimate damages at $381,979.02, which includes their payment to Magnolia, costs for remediation, loss of personal belongings, and temporary housing expenses. The lawsuit is not an isolated case; Peloso and Magnolia face multiple lawsuits from various plaintiffs, including customers, subcontractors, and even foreign entities like the Embassy of Niger and the Republic of Austria. Peloso declined an interview but stated through a public relations agency that he takes client concerns seriously and that legal disputes are rare in the construction industry. Alp's lawsuit claims that Magnolia's work did not meet contractual and regulatory standards, including the Ontario Building Code. Peloso has filed a notice of intent to defend against the claims, asserting that he disagrees with the characterization of the workmanship. He stated that Magnolia has completed over 400 renovation projects in the region, with most customers satisfied. Alp reported that she raised concerns during the renovation about improper plumbing and electrical work. Although Peloso was responsive at the time, the couple's claim alleges that the project took six months instead of the expected two due to Magnolia's lack of management and oversight. After the flooding incident, Alp requested inspection reports from the City of Ottawa, which Magnolia claimed had been completed. However, the city could not find any records of inspections, and a subsequent city inspection revealed multiple failures, including plumbing and framing issues. Peloso contended that an inspection was conducted and that the renovation passed, but he did not provide specific details. The City of Ottawa, listed as a defendant in the lawsuit, stated it does not license contractors and may issue penalties for violations. The couple's investigation into Magnolia's work uncovered numerous deficiencies, including structural issues and exposed wiring. Peloso rejected claims regarding the structural integrity of the project, stating that some observations were made during the pre-final stage when tasks are often incomplete. In addition to the couple's lawsuit, Peloso faces other legal challenges, including a case involving a subcontractor who claims he is owed over $41,000 for unpaid work. Peloso acknowledged an error that led to delayed payments but stated that payments have resumed. Alp expressed disappointment in Magnolia's reputation, noting that she believed the company was trustworthy due to its affiliation with the Greater Ottawa Home Builders' Association (GOHBA). However, GOHBA confirmed that Magnolia's membership was terminated in April 2024 due to unpaid fees. As the legal proceedings continue, the couple hopes to recover their losses and address the damages caused by the renovation gone wrong.