Do I have a Fair Trade Practicer Non Disclosure Real Estate Purchase Suit?

[patriot]

I Purchased a 37 y/o home. I discovered some small water damage under baseboards I feel was not disclosed by the seller. Seller disclosed no water damage. Seller had the basement waterproofed 1 year before we purchased home. Seller provided a warranty from that waterproofer.Waterproofing wants 500 to honor warranty. I do not want to deal with waterproofer. Seller offered to pay the 500 for the waterproofer waranty. Seller was 3rd owner of the home. Seller's real estate company had a professional contractor inspect the areas in question and in the presense of our real estate agent wiped dust from the stud wall board that run along the wall finding the entire wall's floor stud length powder dry,; actuyaly wiping dust from studs exposed by sheetrock contractor. But there is evidence under baseboards that at some time water came in the basement. Seller claims hot while he owned the house Sellers say no water problem in that area of the basement just garage. Seller spent $18,600 remodeling home 1 year prior to sale to include pro waterproof with warranty. House was inspected by our Bank's Appraiser, My Home Inspector & Seller's VA loan home inspector. No water problem noticed by three inspections. My septic inspector crushed the underground gutter drainpipe with his backhoe during excavation impeding rainwater water flow away from the house very near where I discovered wall board water damage. Seller claims I caused any water problem through my hire of septic inspector who did crush the drain pipe. Seller claims the PRO Water Proof done 30 feet away from area of discovery on advisement from water proofer due to water that came in through the garage causing the damage on the opposite wall. The seller did fix that wall completely and retiled that room's floor for property sale. Water stains were visable on floor area of the pegboard on the garage's walls prior to sale of the house. Seller has photographic proof of this. Seller claims basement area in question where I am having sheetrock hung never had a water problem till my septic inspector crushed gutter pipe that deposited water straight into the ground following that inspection for 2 months. Honestly the 23 y/o basement carpet shows no water damage where wall water stains found by my contractor I employed to hang sheetrock is working. Before I spent 350hr do I have a non-disclosure fair trade case against the seller for not disclosing water damage he claims he had no knowledge of during his 14 year ownership of a 37 year old house. I am claiming the seller hid the water damage with the baseboards. Seller offered to pay the 500 for the waterproofer warranty if I go away and never revisit him or the problem or any other problem. 500 buck to shut me up & make me go away I guess. Please advise