This paper develops a methodology for actuator fault diagnostics and quantitative estimation of fault signals in a class of non-linear systems. The class of non-linear systems considered is one in which the non-linearity is an incremental quadratic type of non-linearity that includes Lipschitz, positive real and sector non-linear functions. The methodology provides for both state estimation and fault vector estimation. An LMI procedure can be utilized for explicit computation of the observer gains. The procedure developed can also be specialized to linear time invariant systems. Compared to previous results for LTI systems, the procedure developed herein does not require the LTI system to be minimum phase. The use of the developed methodology is demonstrated through two illustrative examples of real world physical applications.