@patb – I am not sure the damages are completely mitigated. I fear I will need to do more work on the french drains which is a huge pain. Yes, I would have bid lower, or more likely, backed out altogether had I known about the previous flooding. Drainage problems are not easily corrected, it may flood again if we reach a greater rainfall rate. I will never really know and it will always be on the back of my mind.
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The drains were there when you purchased, so why would you not expect to do some work related to those drains in the future. patb has a good point. You can’t successfully sue unless you have damages.