In late 2017, Jim Karahalios, a corporate lawyer, was sued by the Progressive Conservative Party of Ontario in retaliation for Karahalios's founding the activist groups "Axe The Carbon Tax" (opposing the party's pro-carbon tax position)[5] and "Take Back Our PC Party" (challenging the party's acceptance of nominations that resulted in allegations of electoral fraud).[6] Karahalios won the lawsuit when Superior Court Justice Paul Perell wrote a decision against the party, ruling that the lawsuit was a "strategic lawsuit against public participation” intended to stifle dissent.[7]
In 2018, following the resignation of Patrick Brown and the election of Doug Ford as Ontario PC Party leader, Belinda Karahalios ran for and won the party's nomination in the riding of Cambridge.[8] and in the 2018 Ontario election she was elected MPP for the riding.[9]
In November 2018, Jim Karahalios ran for the presidency of the Ontario Progressive Conservative Party and later filed a lawsuit against the party after his defeat, alleging the election process was manipulated, election rules were breached and that ballot boxes were allegedly stuffed in order to elect his competitor, Brian Patterson, who was endorsed by Doug Ford.[10]
On July 21, 2020, Belinda Karahalios was expelled from the Progressive Conservative caucus by Doug Ford after voting against Bill 195, the Reopening Ontario (A Flexible Response to COVID-19) Act, which would expand the government's emergency authority during the COVID-19 pandemic. Karahalios voted against the legislation, calling it an "unnecessary overreach on our parliamentary democracy."[11][12] A month later, Belinda Karahalios, her husband Jim, and 18 other members of the Ontario PC Party were removed from the Cambridge PC Riding Association Board as a result of the party executive, led by Brian Patterson, voting to "de-register" the riding association with Elections Ontario.[13]
On October 12, 2020, Jim and Belinda Karahalios released a video announcing that they were forming a new political party, claiming that the Ontario PC Party was beyond redemption. Stating that there "is no party in the Ontario legislature defending the taxpayer, defending small business, defending places of worship, promoting freedom, promoting democracy or fighting political corruption."[14][15]
On January 7, 2021, the New Blue Party was officially registered by Elections Ontario. Party leader Jim Karahalios stated that the party would focus on supporting the taxpayer, places of worship and small business.[16] Belinda Karahalios, an independent after having been removed from the PC caucus, became the lone MPP for the New Blue Party as of January 18, 2021.[17]
Karahalios ran as a New Blue candidate in the 2022 provincial election, but lost her seat, coming in fourth.[18] The party won no seats in the 2022 provincial election.[19]
