[MisterJoji]

Sorry if this is in the wrong forum but I didn't see anywhere where this would be more appropriate.

Anyways, I moved into a new build last February and right from the get-go had issues with water in the basement. It wasn't a lot to begin with but it was a big enough puddle that was concerning, especially with wanting to develop the basement. The builder came out and tried a few quick-fixes such as re-leveling the floor where the water accumulated (I know, I didn't see how this would fix anything, but I humoured them). When that didn't work they poured more cement into a smallish 2 inch gap between the basement wall and floor.

Well this spring, during a big melting period we had a major flood in the basement, took to the wee hours of the morning to shop-vac it all out. After taking down all the insulation we found all the water was coming in through one window well area. I further examined that the window well did not have a weeping tile drain and was back-filled with muddy clay (not rocks). I called out the weeping tile company and they discovered that the drain had been knocked over during back-filling and confirmed my suspicion that it should have been filled with rocks. The company hydro-vac'd out the well and re-filled it with rocks for around $2300.

When I contacted the builder they told me to contact the Home Warranty company, who denied my request for reimbursment given that it occurred 1 month after the "1st year Materials and Labour Warranty." I stated that the defect was obvious from day one and the previous small collection of water was likely draining down the small gap between the basement floor and when that was sealed it became the major flood. I have video/pictures of both the water accumulation, the knocked over drain and muddy/clay backfill. I also have a signed statement from the weeping tile company confirming the 2 major defects. The Home Warranty people continued to deny the claim, but did just say they contacted the builder directly and the builder was willing to cover 1/2 the cost of the repair "without prejudice."

Now I examined my other to window wells and they appear to be filled properly with rocks and I found one of the wells had the proper drains sticking up (the other may just be buried deep than I dug). Both those well's have never flooded so I'm not too concerned with them, but the "without prejudice" thing worries me about the future. I should also note that since the repair, the basement has been bone dry, an obvious sign the issue was correctly identified and repaired.

Should I hold out for full payment or take the offer and run? Should I worry about the "without prejudice" stipulation?

Thanks in advance.