Ho Chi Minh City court awards VND1.7 billion in villa sinking case, far below plaintiff’s claim

# Case in brief

# Background and claims Tran Thi Toan, 80, runs Toan Thang Co. Ltd., which holds quarry assets and a luxury hotel in central Vietnam. In 2017 she purchased six adjoining villas in what was formerly part of central District 1. Elegance began construction on the Ba Son Central Complex in 2020. Toan alleged the construction caused cracks and sinking in her villas, forced four villas to remain vacant, and led to lost rental income. Her suit claimed VND3.9 billion for repairs and VND41 billion for lost rent.

# Evidence considered The court reviewed pre-construction survey records showing hairline cracks in perimeter walls, cracked fence pillars, and settlement in some sections of the properties. Saigon Construction Inspection JSC and other assessors examined the site and identified multiple contributing factors:

• The area sits on soft ground prone to consolidation settlement. Groundwater pumping, excavation, and heavy equipment associated with nearby construction can accelerate that settlement.

• For villas 14, 15, 18 and 19, the damage was attributed largely to the buildings' own settlement and to settlement of surrounding infrastructure.
• Assessors also pointed to construction quality, maintenance practices, and material shrinkage as explanations for structural damage beyond tilting and settlement.

# Court findings and award The trial panel concluded multiple causes were at play. It accepted that construction accelerated settlement and caused or worsened damage to at least two villas, but it also found pre-existing defects and natural consolidation contributed to the problems. Based on those mixed findings, the court ordered Elegance to pay more than VND1.7 billion toward repair costs. The plaintiff did not obtain the bulk of the VND41 billion claimed for lost rental income.

# Practical takeaways

• When property damage occurs near large construction projects, causation can be complex: courts may apportion responsibility between construction impacts and pre-existing or natural causes.

• Disputes involving multiple defendants and large projects may result in partial awards if assessors find mixed causes.

# What remains unresolved