Insurance Case Study - Sewer Lines

The Job

Designer was engaged to design an extension and an employee of the design company provided all the services.

The Allegations

During construction, the sewer line was dug up and needed to be relocated. The depth of the sewer was considerably higher than the inspection originally showed. The inspection was performed by a third-party company. It is alleged that the designs did not identify the correct height and now there is insufficient fall for the design. The depth of the sewer has also caused issues with levels to the yard which will mean that their original design goal cannot be achieved. The homeowners allege that had they have known, the house would’ve been lifted instead of going down. They also allege that this error has caused greater exposure to flood risk due to the presence of a stormwater pit and pump.

The Demand

The claimant is demanding that the building designer pays the variation to;

1.  Install a sewerage pump
2. Additional site works (excavation) in the yard to achieve the original design

Total demand is $50,000

The Case

After investigations, it was found that the levels were incorrectly marked on the plans and the designer was liable for the damages.

The Outcome

$45,000 was paid to the claimant (homeowner) and a deed of release was signed. There was no admission of liability and the terms of the settlement were confidential

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Disclaimer: The scenarios here are based on real events, however, they have been simplified and dramatised for publishing. Nothing contained herein is intended as personal or legal advice and you should contact a qualified professional to obtain your own advice
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