Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions
May 12, 2026 —
David Adelstein - Florida Construction Legal UpdatesContract drafting and interpretation matters.
A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case
here where the appellate court reversed based on the prefatory language.
But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:
Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Risks of Using an AI Chatbot for Legal Advice: Lessons from United States v. Heppner
April 08, 2026 —
Payne & Fears LLPImagine that you are an executive (who is not a lawyer) and are concerned about what your company plans to do is legal. You could call your lawyer who might bill you for the call. Or, you can ask your AI chatbot, such as Claude or ChatGPT, about the legal risk. The chatbot will likely compliment you on the incisive question, provide you with highly confident answer (that may or may not be right) and will not bill you on an hourly basis.
That is essentially what financial services executive Bradley Heppner did. It did not end well. A federal court recently ruled that Heppner’s chats with the AI tool Claude were not protected by attorney-client privilege or the work-product doctrine. That means that the other side (in this case, the federal government) could get access to his chatbot prompts, uploads and responses, and learn a great deal about, for example, whether Heppner knew what he was doing was illegal.
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Payne & Fears LLP
Conditional Payment Bond Consideration-Make Sure There Is Pay-If-Paid Provision
June 29, 2026 —
David Adelstein - Florida Construction Legal UpdatesIf a general contractor is going to have a conditional payment bond, it needs to ensure it subcontracts contain pay-if-paid or pay-when-paid provisions. This conditional payment language in subcontracts is the general contractor’s defense that it doesn’t have to pay a subcontractor UNTIL owner has paid the general contractor for the subcontractor’s work.
The general contractor (and the surety) can look at the conditional payment bond with the s. 713.245 legend stamped on its face designating the conditional nature of the bond, and assume the conditional structure is locked in against the bond: no payment from the owner, no obligation to the subcontractors under the bond. But what happens when the subcontracts contain no express conditional payment language despite having a valid conditional payment bond?
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Modular Construction’s Big Boom: New Risks Outpacing Standard Contracts in Industrial Projects
March 24, 2026 —
Chad Theriot & Jack Mayo - Construction ExecutiveModular construction is revolutionizing the construction industry, tackling labor shortages, sustainability goals and supply-chain challenges, with the global market for modular and prefabricated construction projected to reach over $200 billion by 2030. While residential builders have embraced modular’s speed and affordability, the greatest risks—and opportunities—are emerging in the industrial sector, where project scale and complexity demand new legal strategies.
In 2023, Chad Theriot explored industrial and infrastructure applications of modular construction, addressing risks like offsite fabrication and integration complexities in his article, “
The Rise of Modular Construction—Impacts for Consideration.” Since that time, modular construction has continued to experience significant advancements and has been increasingly adopted by contractors across a broad spectrum of industrial and commercial projects. As modular construction continues to reshape the industrial landscape, contractors and owners alike must be mindful of the legal implications associated with its use, specifically as it relates to liability and risk allocation, regulatory compliance, quality control and upstream factors such as transportation and intellectual property concerns.
Reprinted courtesy of
Chad Theriot and Jack Mayo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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GRSM Marks Seventh Anniversary as First and Only Full-Service Law Firm in All 50 States, Climbs to #70 on Am Law 100
April 20, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani proudly celebrates the seventh anniversary of its becoming the first and only full-service law firm with offices and attorneys in all 50 states. Since launching its innovative 50-state platform in April 2019, GRSM has experienced extraordinary growth across markets, practices, and client relationships.
In the past seven years, GRSM has expanded its footprint with 20 new offices in both major and secondary markets and doubled its attorney headcount, growing from 940 to more than 2000 lawyers. This growth has propelled GRSM from the 40th to the 11th largest law firm in the United States, according to Law360, while also driving a significant rise on the Am Law 100 rankings, from #103 in 2019 to #70 in 2026. GRSM has served nearly half of the Fortune 500, a testament to its deep bench of lawyers and national capabilities.
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Gordon Rees Scully Mansukhani
Four Kahana Feld Attorneys Selected to 2027 Southern California Super Lawyers® and Rising Stars Lists
August 16, 2026 —
Kahana FeldIRVINE, CA – Aug. 3, 2026 – Kahana Feld is pleased to announce that partners
Jason Feld,
Amir Kahana, and
Sharon Oh-Kubisch were selected to the 2027 Southern California Super Lawyers list, and attorney
Hannah Ellenhorn Bloom was selected to the 2027 Southern California Super Lawyers Rising Stars list.
Jason Feld was recognized in the area of Construction Litigation. He is a founding partner of Kahana Feld and focuses his practice on the defense of homebuilders, contractors, developers, and real estate professionals primarily in construction defect, general liability, insurance defense, construction accident, and real estate matters. He also represents government entities handling construction, premises liability, general liability, and environmental claims. He serves as panel counsel for many prominent insurance carriers, as well as personal counsel to several national and regional homebuilders, developers, and general contractors.
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Kahana Feld
Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law
June 29, 2026 —
Brenda Radmacher - The Construction SeytDaily Journal (California) featured an article by Construction Law partner
Brenda Radmacher, “A new path for construction defects in California.” The piece, published on June 15, 2026, examines Assembly Bill 1903 and its potential to significantly reshape California’s construction defect framework, particularly for common interest properties.
The article highlights how AB 1903 would overhaul the state’s current right-to-repair system by mandating completion of prelitigation procedures, raising requirements for defect claims, strengthening developers’/builders’ rights to repair, and introducing a voluntary “certified building” program. The legislation aims to rebalance competing interests by reducing litigation-driven costs while preserving protections for homeowners.
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Brenda Radmacher, Seyfarth Shaw LLPMs. Radmacher may be contacted at
bradmacher@seyfarth.com
A Permitting Base Checklist for Data Centers and Power Plants
June 02, 2026 —
Michael S. McDonough, Stephen J. Humes & Stacey C. Wright - Gravel2Gavel Construction & Real Estate Law BlogThere is a lot of talk these days about “license to operate” for data centers, meaning management of the relationships with stakeholders and broader communities concerning both the benefits and adverse consequences of locating a facility in a particular locale. Here, we are speaking of “license to operate” more literally—namely, the legal and regulatory permitting and approval requirements for a privately owned data center whether by itself or colocated with a power generating plant.
Our Base Checklist includes generally and potentially applicable permitting requirements for development and operation, using California as an example. (Taking legal authority Frank Sinatra out of context, “If you can make it there, you can make it anywhere.”) The actual requirements for a given facility would depend, in part, on local law, including planning and zoning laws and plans, and the environment of the site. Just as examples, additional permitting and mitigation requirements might apply if sensitive receptors are located nearby (e.g., noise mitigation for residential dwellings), if sensitive and protected biological resources (e.g., jurisdictional waters and/or protected species) would be impacted, or if the present or former land uses require additional measures (e.g., hazardous materials remediation, mitigation for conversion of prime farmland, or protection of cultural resources). The scope of permit requirements would ultimately be determined by the applicable regulatory agencies and by the lead and responsible agencies under the applicable state environmental land use regime—in our reference case here, the California Environmental Quality Act (CEQA).
Reprinted courtesy of
Michael S. McDonough, Pillsbury,
Stephen J. Humes, Pillsbury and
Stacey C. Wright, Pillsbury
Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. Wright may be contacted at stephen.humes@pillsburylaw.com
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