Who is responsible for compensation when a house suffers wall cracks due to construction of neighboring buildings?

Lufa Case [2026] 133

(Source: Internet, please delete if infringes)

Case Summary

In 2022, a thermal power company in Linyi was conducting the installation of pre-buried thermal pipelines in a certain park, with Sun’s self-built factory adjacent to the company’s construction section. During the construction, Sun discovered cracks in his factory walls and believed that the damage to his building was caused by the thermal power company excavating a trench on the north side of his property. He reported to the relevant departments, demanding that the thermal power company stop the construction and compensate for the repair costs of his building. Later, the thermal power company backfilled the construction site with concrete, but despite multiple mediations, the two parties could not reach an agreement on compensation. Sun subsequently sued the thermal power company in court.

The thermal power company argued that its construction site was tens of meters away from the involved building and that it did not excavate a trench behind the involved building, thus it should not bear responsibility for the damages to Sun’s building.

Court Hearing

The court found that a party should bear tort liability for damages caused by infringing on another person’s civil rights due to fault. Based on Sun’s application, the court legally entrusted relevant institutions to assess the cause of damage to the involved building, the safety of the building, and the repair plan. The appraisal report indicated that excavation had occurred on the ground north of the involved building, and based on the distribution pattern of the wall cracks and the deviation in the verticality of the walls, it determined that the damage to the building was caused by uneven settlement of the foundation due to the excavation on the north side. It recommended that the affected wall be demolished and rebuilt, with repair costs estimated at 327,487.22 yuan.

Considering the multiple mediation records between Sun and the thermal power company and the court’s on-site inspection findings, it was determined that the excavation and backfilling of the ground on the north side of Sun’s building were caused by the thermal power company’s construction. Therefore, there was a causal relationship between the cracks and damage to Sun’s building and the construction actions of the thermal power company. As the owner of the involved building, Sun had the right to demand compensation for damages from the thermal power company. The court thus ruled that the thermal power company must compensate Sun for the repair costs and appraisal fees totaling 362,487.22 yuan. The thermal power company was dissatisfied with the ruling and appealed, but the second instance upheld the original judgment.

Judicial Explanation

In urban and rural construction, construction units should standardize their construction practices, assess the impact of the project on surrounding buildings in advance, conduct thorough inspections of the current condition of the buildings, and implement effective support, vibration reduction, and isolation measures to prevent and avoid damage to adjacent buildings. If neighboring rights holders discover that their buildings are damaged due to nearby construction, they should promptly report to the relevant departments and secure evidence. When appraisal institutions conduct professional assessments of building damage and its causes, it is advisable to provide original photos, videos, and other materials of the building’s state before construction, to avoid failure to confirm causal relationships due to lack of comparative data, which would lead to adverse consequences of not being able to bear the burden of proof.

Legal Provisions Link

Article 237 of the Civil Code of the People’s Republic of China: For damages to immovable or movable property, the rights holder may request repair, reconstruction, replacement, or restoration to its original state according to law.

Article 1165: A person causing damage to others’ civil rights due to fault shall bear tort liability. If it is presumed by law that the actor is at fault and they cannot prove that they are not at fault, they shall bear tort liability.

Article 1167: If the tortious act endangers the safety of another person’s person or property, the victim has the right to request the tortfeasor to bear tort liability by stopping the infringement, removing obstacles, and eliminating dangers.

Written by: Fu Wendi, Zhang Jingyu

Reposted from: Hedong Court

Source: Shandong High Court