Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict
May 26, 2026 —
Gray Development GroupPHOENIX, May 19, 2026 /PRNewswire/ -- A Maricopa County court has entered a $323 million compensatory damages judgment in favor of Gray Development Group against ZOM Holding Inc., doing business as ZOM Living, following a 12-day trial, a unanimous jury verdict and post-trial proceedings related to a proposed business transaction.
The jury found ZOM liable on claims of breach of contract and breach of the implied covenant of good faith and fair dealing stemming from a proposed joint venture tied to a planned pipeline of luxury multifamily and commercial projects in Phoenix and Scottsdale.
The lawsuit centered on a 13-project, $1.4 billion development pipeline originated and planned by Gray Development Group over more than a decade. In 2019, Gray invited Florida-based ZOM to participate in a joint venture involving the completion of five projects, which would have marked ZOM's entry into the Arizona market.
According to court findings presented at trial, the companies entered into a mutual confidentiality and non-circumvention agreement before Gray shared extensive sensitive and proprietary information related to the projects, including planning, market analysis, costs, financial data, local business relationships and operational strategies developed by Gray over decades in Arizona.
Evidence presented during trial showed that over a 10-month period while under contract, ZOM made hundreds of requests for confidential project and market information before circumventing Gray and pursuing the projects independently, ultimately displacing Gray from projects it spent years planning and developing.
ZOM Living, headquartered in Orlando, develops multifamily and senior housing communities across the United States and operates regional offices in Boston, Dallas, Fort Lauderdale, Nashville, Phoenix, and Raleigh. ZOM is owned by Timeless Investments, the Amsterdam-based family office of Dutch businessman Hans van Veggel, which acquired the company in 1997.
About Gray Development Group
Gray Development Group was founded by architect Bruce Gray in 1991. The Phoenix-based company was the top-ranked multifamily developer in Arizona for more than a decade. The company designed and developed more than 15,000 apartment and condominium units throughout metropolitan Phoenix. Two Gray-designed developments — a Tempe midrise and a San Diego high-rise — received National Apartment Community of the Year awards.
Insurer Cannot Raise Issues on Appeal that Were Not Presented to the Trial Court
June 15, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Court of Appeals affirmed a judgment on a collapse claim for the insured, rejecting the insurer’s arguments that were not presented to the trial court. Homeowner’s Choice Prop. & Cas. Ins, Co. v. Oakes, 2026 Fl. App. LEXIS 2086 (Fl. Ct. App. March 18, 2026).
The insured’s ceiling collapsed in the secondary home on the insured’s property. The claim was reported to the insurer, but coverage was denied after its investigation.
The insured sued the insurer for breach of contract. Under the Additional Coverage provisions of the policy, collapse was covered if it was “abrupt.” An abrupt collapse was not covered, however, if exclusions for “Fungi, Wet or Dry Rot” and “faulty, inadequate or defective design, specifications, workmanship, repair, construction, renovation, remodeling, materials or maintenance” applied. The collapse provisions contained no language stating that the coverage granted in the provision was also subject to all the other exclusions in the policy.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
We Won’t Permit That Excuse!
June 23, 2026 —
Curt Martin & Richard Eiszner - ConsensusDocsA Texas appellate court recently ruled that a building permit wasn’t a condition precedent for a construction project. That caught our attention. Can you build a commercial project without a permit?
But as we read the case, we see the court’s reasoning. And it reminds us of an important legal principle that should inform our contract drafting and negotiation.
The case was a civil suit brought by the project owner against its tenant improvement contractor for work on a medical spa. The owner claimed that the contractor didn’t perform the work properly and didn’t finish construction. The contractor argued that delays and problems were caused by the owner, alleging numerous failures, including the owner’s failure to secure a building permit.
Reprinted courtesy of
Curt Martin, Peckar & Abramson, P.C. and
Richard Eiszner, Peckar & Abramson, P.C.
Mr. Martin may be contacted at cmartin@pecklaw.com
Mr. Eiszner may be contacted at reiszner@pecklaw.com
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Celebrating Freedom: The Overlooked Freedom to Contract in Commercial Insurance
July 20, 2026 —
Michael S. Levine & Andrea DeField - Hunton Insurance Recovery BlogHappy 4th and 250 years of freedom . . . to contract!
Many policyholders assume insurance policies are “standard” and must be accepted as-is. That assumption is often wrong—and dangerously limiting. Unlike many consumer insurance markets, the commercial insurance realm preserves a robust “freedom to contract,” allowing sophisticated policyholders to negotiate terms, exclusions, definitions, and limits before a policy is even issued. Particularly in recent years, high-profile disputes over cyber coverage, business interruption, and war/cyber exclusions have shown not just what happens when coverage is denied, but what could have been done up front to avoid those fights.
This post highlights the power policyholders still hold in the negotiation process and illustrates, with concrete examples from recent media-covered disputes, how that freedom can be strategically used.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth LLP and
Andrea DeField, Hunton Andrews Kurth LLP
Mr. Levine may be contacted at mlevine@hunton.com
Ms. DeField may be contacted at adefield@hunton.com
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Anti-Concurrent Causation Clause Prevents Coverage for Collapse
April 27, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the decision of the trial court granting summary judgment to the insurer after agreeing that the policy’s anti-concurrent causation clause barred coverage. Lido Hospitality, Inc. v. AIX Specialty Ins. Co., 2026 Iii. App. Unpub. LEXIS 133 (Ill. Ct. App. Jan. 27, 2026).
One of the brick veneer walls of the Lido Motel collapsed during a windstorm. Lido reported the loss it its insurer, AIX. AIX investigated and determined that the brick veneer collapsed due to pervasive wear and tear and corrosion of the underlying infrastructure that secured the veneer- specifically the components that anchored or tied the masonry veneer to the underlying wooden substrate.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
White and Williams LLP Secures Trio of Cyber Coverage Wins
May 12, 2026 —
Gabriel Darwick & Sean Elman - White and Williams LLPThree weeks, three jurisdictions, three cyber wins.
White and Williams picked up the first victory on March 9, 2026, in the United States District Court for the Western District of Texas, where the court granted summary judgment to their client enforcing a Cyber Crime Loss sublimit. See Perry & Perry Builders, Inc. v. Cowbell Cyber and Obsidian Specialty Ins. Co., 2026 U.S. Dist. LEXIS 49409 (E.D. Tex. Mar. 9, 2026). In Perry, the insured was deceived into transferring money intended for a vendor to an unintended third party. The insurer acknowledged that the loss was covered and paid the insured the policy’s Cyber Crime Loss sublimit. Discontent with a single sublimit, the insured argued that because it wired the money to the fraudster in separate transfers, it was entitled to a second Cyber Crime Loss sublimit.
Reprinted courtesy of
Gabriel Darwick, White and Williams LLP and
Sean Elman, White and Williams LLP
Mr. Darwick may be contacted at darwickg@whiteandwilliams.com
Mr. Elman may be contacted at elmans@whiteandwilliams.com
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At the Intersection of Indemnity and Prevailing Wages
March 17, 2026 —
Garret Murai - California Construction Law BlogIn a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages.
The Nabors Case
In
Nabors Corporate Services, Inc. v. City of Long Beach, 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands Oil Production Company and the City of Long Beach after it was found liable in a class action lawsuit for failing to pay prevailing wages to its employees. Nabors’ contract with Tidelands did not require the payment of prevailing wages and neither Tidelands nor the City believed that the project, which involved “oil well plug and abandonment” work, required the payment of prevailing wages.
Read the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Thomson Reuters Construction Law (Virginia Practice Series)
March 31, 2026 —
Jennifer L. Harris & Michael A. Branca - Peckar & Abramson, P.C.P&A Partners Michael A. Branca and Jennifer L. Harris have authored the most recent edition (2025) of Construction Law (Virginia Practice Series), part of Thomson Reuters’ ProView legal reference library. Associate
Julia Loudenburg also provided substantial assistance for this edition.
Construction Law includes summaries and analysis of statutes, regulations, and cases. It covers all major legal issues, including:
- Licensing
- Building code compliance
- Public-private partnerships
- Public contract bidding and performance
- Dispute resolution
- Damages
- Third-party liability
- Liens and bonds
Reprinted courtesy of
Jennifer L. Harris, Peckar & Abramson, P.C. and
Michael A. Branca, Peckar & Abramson, P.C.
Ms. Harris may be contacted at jharris@pecklaw.com
Mr. Branca may be contacted at mbranca@pecklaw.com
Read the full story...