While I would love to agree with you, look at the “defect” THE HOUSE IS SHIFTING!!!!. In California this is common. We have land that is almost always on the move. If you want a house that doesn’t settle or slip you have to be careful where it is built.
When you had Americans building the homes in CA they usually knew how to compensate for it. Commercial construction in CA uses higher quality workers in most cases. For example - in Nor Cal the Costco uses wood roof trusses to flex for earthquakes. In Florida they use steel roof trusses.
Pedro “ain’t” slap dashing commercial buildings in many cases because if it falls down - a lot of people could get killed and sued.
If the soil is that bad, drive pilings and then put the footings and foundation on top. Spend an extra $20,000 now or $100,000 later. But still, where were the building inspectors??? What the hell is their function anymore except to get a paycheck and run up the cost of building???