Opinion ID: 2448926
Heading Depth: 2
Heading Rank: 1

Heading: The AGEC Report

Text: ¶ 6 After concluding its investigation, AGEC prepared a report of its findings (the AGEC Report or Report). At the time the AGEC Report was prepared, the layout of the Developmentincluding the individual lots, streets, and parkshad not yet been established. Although the AGEC Report included a general assertion that Canberra's land was suitable for the proposed residential development, it specifically warned of an erratic occurrence of highly collapsible soil in the Development and set forth precautions owners should take when building homes on this soil. The Report's conclusions section included the following statements: (1) Moisture sensitive soils have been reported in the area. Precautions with respect to constructing in moisture sensitive soil areas are included in this report; and (2) The site is suitable for the proposed residential development. Recommendations contained in this report should be carefully followed. ¶ 7 Additionally, another section of the Report, titled Collapsible Soil Considerations, indicated that [t]he collapse potential of the soils at the project site ranged from  very low to high,  with localized areas of collapsible soils. The AGEC Report also indicated that the moisture-sensitive clay and silt soils were spread throughout the Development with known erratic occurrence and that owners should be aware of the potentially moisture sensitive soils in the area. ¶ 8 While most of the AGEC Report related to the Development as a whole, the Report included a figure identifying the location and soil composition of twelve test pits AGEC used to conduct its study. One of these test pitstest pit twelvewas drilled in an area that would later become the backyard of Lot 41. AGEC's analysis indicated that test pit twelve contained layers of clayey and silty soil, which the Report warned were susceptible to collapse because of their sensitivity to moisture. ¶ 9 After receiving the AGEC Report, Mr. Allen read through [it] and paid particular attention to the conclusions section, which he was very interested in.