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where petitioner lived, was declared a national disaster area.
Notice 89-108, 1989-2 C.B. 445.
Petitioner continued to live in her home after the
earthquake.
D. Structural Damage
1. The Foundation
a. Description
Each of the three units in petitioner's building has a
garage. Petitioner's garage is built on flat land. Part of the
foundation of each unit is separate from the garage on a steep
slope. Petitioner's unit has a pier and grade beam foundation
other than for the garage. The grade beams rest on piers. The
piers are 18 inches in diameter and 18 feet deep.
The foundation of petitioner’s home was weakened by the
earthquake. The earthquake caused about 25 cracks in the
foundation, including several under the main supports for
the house.
b. Inspection by Bob Cook
Shortly after the earthquake, petitioner hired a contractor,
Bob Cook (Cook), to inspect her home. Cook made two estimates of
the cost of structural repairs to petitioner’s home. He made a
preliminary estimate on December 5, 1989, of $37,900, and a final
estimate on December 20, 1989, of $48,100. Cook had engineers
consider whether the foundation needed to be replaced or could be
salvaged using chemical adhesive injection (i.e., epoxy). On
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