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Old 04-07-2015, 02:41 PM   #1
MisterJoji
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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.
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Old 04-07-2015, 02:56 PM   #2
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"Without Prejudice" only means that they can withdraw that offer, and you can't bring up again that this offer was made.
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Old 04-07-2015, 03:07 PM   #3
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2 inch gap between the floor and wall? Holy crap. For sure take the money. Without prejudice just means it's not an admission of guilt nor is it usable in court in anyway. You'd still have every legal recourse you do now if you wanted to sue.
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Old 04-07-2015, 03:18 PM   #4
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"Without Prejudice" only means that they can withdraw that offer, and you can't bring up again that this offer was made.
Not sure I understand. Couldn't any offer be withdrawn before the payment is made? I'm assuming I couldn't bring it up legally, if I had to go to court for any future problems?

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2 inch gap between the floor and wall? Holy crap. For sure take the money. Without prejudice just means it's not an admission of guilt nor is it usable in court in anyway. You'd still have every legal recourse you do now if you wanted to sue.
The gap actually wasn't a big deal according to two separate, neutral third party, foundation companies we had assess (+ a general contractor friend). The gap essentially made the water problem appear less serious than it was, so in the end I am glad it was filled. But with the whole without prejudice stipulation in there, should I be pushing for full payment, since I have lots of evidence it was caused by improper backfill and was there since day one? Or should I flat-out insist that the without prejudice be removed?
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Old 04-07-2015, 03:20 PM   #5
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Quote:
Originally Posted by MisterJoji View Post
Not sure I understand. Couldn't any offer be withdrawn before the payment is made? I'm assuming I couldn't bring it up legally, if I had to go to court for any future problems?
If you accept an offer they would likely want a full release from you before providing the payment.
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Old 04-07-2015, 03:20 PM   #6
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From my very limited understanding of Alberta home warranty, it is absolute garbage and only there to protect the home builders interests. Someone feel free to correct me if I'm off base. Pretty poor customer service (not to mention build quality) on home builders part also. Good luck.
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Old 04-07-2015, 03:27 PM   #7
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Sounds like you have a solid case, so I'd probably push for full payment.

I tried using the home warranty on my condo a little while back and it was such a headache. The lino in the kitchen was coming up, and it became the biggest finger pointing game of all time. It's the material...it was the installation...you maintained it wrong...etc. I never got restitution in the end.
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Old 04-07-2015, 03:30 PM   #8
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I'll agree the "new home warranties" are pretty much useless. Yet so many people are of the "I want to buy a new house because I don't want problems".

Haven't people watched a few episodes of Holmes on Homes to see how "new" does not mean better?

I'd take the money, but without signing any sort of release. Have a better read as to what exactly "Warranty" covers, I seem to recall much of it being around "structural" issues vs something like water intrusion or bad interior finishing.
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Old 04-07-2015, 03:37 PM   #9
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I can only go off personal experience.

I built a rental property in McKenzie through Cardel. Anyways, 4-years post-build water was dripping down through the ceiling in the bathroom. It was discovered that the exhaust fan was exhausting directly into the ceiling.

Cardel fixed it no questions
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