Undisclosed foundation repairs and recourse

[Carson Eagle]

Purchased a home two years ago, had a home inspection. Inspector mentioned minor cracking in stem wall, nothing of major concern. Suggests having a foundation specialist look at if there is concern, which was not done. 

Sellers said nothing in disclosure about foundation issues or repairs/work done previously. 

Two years later, I put the house on the market. Potential buyers inspection reveals major foundation issues. Things have worsened since my purchase. I take the house off the market. 

Now I start digging for information, and request a foundation specialist to come to the home and provide an estimate. Just by chance, this company worked on the home for the seller I purchased from, oh really.

I obtain all documentation from this company, in regards to what the seller paid to have done. No permits were drawn for this structural work as required by california building code.

Further investigation of the foundation leads to $65,000 worth of work needed, with engineering required to be warranties for life. 

I.want the seller to pay for the repairs, since what they had done to the foundation was not disclosed. They have denied mediation, refused payment, and we are in litigation. 

I want to hear opinions and how you think this will end. Thanks in advance.