I think they know the land owner isn’t going to actually lose in this but I think this is the developer’s intent to get the court to assign liability portions to everyone and order whatever the path to remediation is going to be. Their hope is likely that they won’t be on the hook for 100% of whatever its going to cost to make the land owner whole since she probably wants the house off her lot completely, wants the land returned to as it was before and isn’t budging. Then there’s the complication of having to evict the squatters at the same time.