A further 40 homeowners on the Eden Park estate in Hartlepool may also now take legal action against the housebuilder.
The court ruled that Shepherd must pay £887,943 in compensation to 10 homeowners after cracks appeared in their walls.
The development of 94 homes was built in 2001 on an old landfill site that, it later transpired, had been inadequately compacted. Cracks were first noticed in 2003.
Shepherd Homes sued its piling contractor, Encia Remediation, in 2005.
In the High Court, Mr Justice Ramsey agreed compensation for the reduction in value of the homes and the inconvenience of having to find alternative accommodation while subsidence repairs were carried out.
Shepherd Homes said it expected the costs of the claim to be covered by its insurance policies.