Hi Dan, Trench forming of the footer is very common here. Works fine. Using block as the floor form is also common. It always results in that crack you saw. No problem. My all-concrete house has both. Vern-Mi is right. The broken footing didn't have sufficient earth support, likely fill. Fill could have worked but it would have needed compaction under skilled direction. That's where soil engineers come in. As it's now a little late to compact, as Vern suggested,I'd be digging down to undisturbed soil for the new footing. If it turns out that there was no fill under the failed area, you REALLY need a soils engineer. Another potential problem is that some of that pea gravel under the slab probably went in on fill too. In time it won't support the slab. Might be a future problem, might not, depends on the strength of the slab and how far it will span. To fully understand the scope of the problem you need to find out if there was fill and what portions of the house were built on it. Assuming fill, the contractor clearly didn't know how to deal with it and all areas over fill should be suspect. Not all problems show up so fast. Sorry to be so negative, but I deal with concrete houses that put large pressure on the bearing soil from roofs weighing 3-400 tons. Something down there must be able to support the weight. Your Dad's(?) house is only going to get heavier as it's finished and moved into, putting more pressure on whatever's under it. Really bad place for any movement. Good luck.
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