[EDFRAZIER]

A contractor began work on an extensive renovation - adding a second storey addition. After 10 days - they left the home exposed to water damage - freak storm blew in and poured into the house. Stuff happens - I wanted to have his insurance information to put in a claim - he wanted to fix it without the insurance claim. 2 days later he walked off the job. I called the police and tried to charge him with fraud - they spoke to the contractor who said his lawyer would be contacting me for a settlement. The lawyer says they are not at liberty to give me the insurance information - I had my insurance company evaluate so that I could continue with the renovation. The deposit of $49,000 by the contractors estimate had been used in these few days - he was willing to refund $14,000. The damage to the home was $14,000 + and the work completed had to be removed and redone (didn't pass engineers or city's inspection) He subsequenty offered $33,000. I am being stone walled and frustrated by his admission that he has at least $33000 of my money but will only release this if I agree not to pursue for damages. Our contract said that we would arbitrate any dispute? What can I do? At this point I'd go for a compromise of returning my original monies - I would still be out the money it cost to redo his work, as well as the damage to the home/personal property.
Is there a scamming law in Ontario - it seems to me that this is a scam. Does the company have to bookkeep my money in their income tax - ?