Early in 2007 Portland, Oregon news stations reported on a new housing development that was built on unstable ground. About 15 high-end houses were built on moderately sloping ground the previous summer. With winter rains picking up, the slope began to slump. Geological investigation revealed that nearly all of the development was built on a periodically active landslide. The slide can be inactive for years at a time, but during unusually wet periods or following disturbance, such as clearing and grading for houses, the slide re-activates and continues its slow march downhill.
Who, if anyone, is liable for this situation? Are the city and county at fault for issuing permits to build on the site? Is the developer liable for not designing adequate drainage that could have prevented re-activation of the slide? Should the homeowners have known better than to purchase a home at this location? Explain. How would you solve this problem?