Beyond the Storm: How Non-Hurricane Catastrophes Expose Florida’s Construction Defect Blind Spot
August 11, 2026 —
Franchesco “Frank” Soto & Amanda L. Gonzalez - Ball JanikOn June 8, 2026, a magnitude 6.1 earthquake struck the Gulf near the coast of Cuba, the largest instrumentally recorded earthquake in the Gulf since seismic monitoring began in 1950. Buildings swayed, offices were evacuated, and many residents along the east coast of Florida, from Miami-Dade to Jacksonville, felt the ground shake. Although no tsunami followed and reported structural damage was limited, this event exposed a blind spot that Florida property owners, developers, and their counsel cannot afford to ignore: catastrophic stress on Florida buildings does not always come in the form of a named storm.
Florida property owners have grown accustomed to preparing for wind, storm surge, floods, and torrential rain. Far less attention is paid to earthquakes, sinkholes, tornadoes, hail, and non-tropical flooding, each of which can place unexpected stress on buildings not designed with those forces top of mind and can trigger deficiencies in buildings that were not otherwise known, expose design failures, and create an urgency for both insurance claims and subsequent litigation.
Non-Hurricane Triggers of Latent Defects
Seismic activity is the clearest example. Florida’s building code accounts for wind loads, not seismic forces, meaning even a moderate earthquake can reveal weaknesses in curtain wall systems, structural connections, or foundations that were already marginal. Sinkholes, driven by Florida’s karst limestone geology, remain a persistent threat, particularly in Central Florida, where subsurface voids can undermine foundations without warning. Non-tropical flooding, like the record rainfall that flooded South Florida in June 2024, can intrude through building envelopes and waterproofing systems that were never stress-tested for such volumes of water. Tornadoes and hail, while more localized, can cause roofing and envelope failures that mimic, mask, or trigger latent construction defects.
The Litigation and Coverage Disputes That Follow
When one of these events strikes a building already carrying undisclosed or unresolved construction defects, the resulting disputes become considerably more complex. Property owners and associations must move quickly to document existing conditions and distinguish damage caused by the event from pre-existing defective construction, the same causation issue that arises in the hurricane context under Chapter 558, but often without the benefit of established precedent or adjuster experience with these less common events.
Insurance coverage disputes frequently follow close behind. Carriers may dispute whether an earthquake, flood, or other peril is covered at all, particularly where policies contain earthquake or flood exclusions requiring separate endorsements, or anti-concurrent causation language that can bar coverage entirely when a covered peril combines with an uncovered one, such as pre-existing defective construction, to cause a loss. Sinkhole claims carry their own statutory framework under Florida law, requiring specific testing protocols and reporting before a claim is compensable. Developers and contractors, in turn, may find themselves defending Chapter 558 claims while simultaneously litigating with their own carriers over defense and indemnity obligations.
Practical Risk Mitigation Strategies
Property owners, associations, and developers can take several concrete steps to reduce their exposure. First, maintain thorough documentation, including engineering reports, maintenance logs, and photographs, well before any event occurs. This documentation is often the deciding factor in causation disputes. Second, engage structural engineers and consultants immediately following any seismic event, unusual flooding, or storm damage, regardless of whether a hurricane is involved. Prompt inspection preserves evidence and can help prevent inadvertent waiver of construction defect claims. Third, review insurance policies regularly with counsel or a broker to confirm earthquake, flood, and sinkhole coverage matches the property’s actual risk profile, rather than assuming a standard property policy responds to every peril. Fourth, avoid rushing to remediate before conditions are documented and/or before consulting counsel. Well-intentioned repairs can inadvertently compromise evidence needed to prove a defect claim.
The June earthquake was a reminder that Florida’s catastrophic risk profile extends beyond hurricane season. Property owners, associations, and developers who build readiness plans around all forms of catastrophic stress, not just named storms, will be far better positioned when the next unexpected event occurs.
Franchesco “Frank” Soto is a partner in
Ball Janik’s Construction Defect Practice Group in Miami. He may be reached at fsoto@balljanik.com.
Amanda L. Gonzalez is a litigation attorney in
Ball Janik’s Construction Defect Practice Group in Miami. She may be reached at agonzalez@balljanik.com.
PJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load Demand
May 12, 2026 —
Stephen J. Humes, Alicia M. McKnight, Jason Drogin Atwood & Andrew H. Jacobs - Gravel2GavelIn January, we discussed the Statement of Principles jointly signed by the National Energy Dominance Council and governors across the mid-Atlantic region—framing accelerating demand (especially from large-scale data centers) as an emergency reliability issue for PJM Interconnection, L.L.C. (PJM), the nation’s largest power grid operator. That policy signal is now becoming a near-term, accelerated procurement and contracting exercise. On April 8, 2026, PJM notified stakeholders of a critical issue fast path reliability backstop procurement process. PJM subsequently released a request for information (RFI) with respect to a proposed Reliability Backstop Procurement (RBP)—a one-time mechanism intended to attract significant new capacity to address projected reliability shortfalls driven by large-load growth.
RBP compresses what is often a multiyear market and regulatory conversation into a fast-moving set of commercial choices. Developers, large loads, utilities and capital providers should be preparing now for (i) an accelerated bilateral contracting window and (ii) a standardized PJM-led backstop procurement if bilateral deals do not clear enough capacity.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury,
Jason Drogin Atwood, Pillsbury and
Andrew H. Jacobs, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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Landlord Determined to Not Qualify as Additional Insured
September 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiIn a dispute between two insurers, the Second Circuit affirmed the district court’s determination that the landlord was not an additional insured under the tenant’s policy. Peleus Ins. Co. v. Am. European Ins. Co., 2026 U.S. App. LEXIS 17981 June 22, 2026).
Blossom Miller sued 57th Avenue and 21st Century in state court alleging that she was injured when she tripped on the sidewalk in front of the leased premises (the “Miller Action”). The premises was leased by 57th Avenue to 21st Century.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Mandatory Arbitration Isn’t All Bad, if. . .
July 13, 2026 —
Christopher G. Hill - Construction Law MusingsIn the past week or so mandatory arbitration has been all the rage. From those that argue that
arbitration is becoming more burdensome than litigation, to my friend and fellow construction attorney Scott Wolfe who gives great advice on how to make arbitration worth it again. You can place me in the camp of those that think that mandatory arbitration clauses of the type typically found in contracts can add a layer of expense that can be unnecessary.
However, if an arbitration clause is carefully drafted, and properly used, these clauses an be helpful in assuring that the streamlining effect for which arbitration was created actually occurs. Because the
contract is king in Virginia, these provisions can essentially create the rule of civil procedure used to resolve any dispute relating to the project.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Cuomo Bridge Lawsuit Adversaries Weigh Mediated Settlement
July 06, 2026 —
Richard Korman - Engineering News-RecordRival legal teams have reached a critical juncture as they consider a mediated settlement in one of two major payment lawsuits pending between a design-build contracting team and the New York State Thruway Authority over construction of the more than $3-billion Mario M. Cuomo Bridge north of New York City.
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Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
Newark Team Obtains Appellate Ruling Affirming Summary Judgment for Lawyer and Firm in Professional Negligence Lawsuit
April 14, 2026 —
Lewis Brisbois NewsroomNewark Partner Meredith Kaplan Stoma and Associate Anthony Doss recently secured a decision from the New Jersey Superior Court, Appellate Division, affirming summary judgment for their clients, a lawyer and her firm, in a lawsuit alleging professional negligence in connection with the administration of a commercial loan.
The circumstances giving rise to the lawsuit date back to September 2020, when the plaintiff was approached by members of a real estate investment company regarding a short-term loan opportunity whereby he would loan the company $200,000.
The company provided the plaintiff with a “bridge loan package,” which stated that the requested funds would be held in the escrow account of their counsel and her firm (Lewis Brisbois’ clients), and returned to him with interest within six months once the company was “capitalized” by a senior lender. The company subsequently prepared two notes, each for $100,000, in connection with the agreement.
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Lewis Brisbois
For Urban Walkers, a Patchy Dilemma: Who Owns the Sidewalk?
July 06, 2026 —
Linda Poon – BloombergIn 2007, New York City’s sanitation department
threatened Natalie Shea with a $300 fine for defacing public property with graffiti. Her crime: drawing a blue flower in front of her family’s Park Slope home with sidewalk chalk. She was six years old.
The incident, which made
local and
national news at the time, captures the fraught role that sidewalks often play in US cities. These patches of pavement do more than carry pedestrians to their destinations: They’re also places for commerce, social interaction and childhood play, from chalking to learning how to ride a bike. Urbanist Jane Jacobs once likened the range of activities that city sidewalks attract to an “intricate ballet.”
In the new book
Sidewalk Nation: The Life and Law of America’s Most Overlooked Resource (Harvard University Press), author Michael Pollack explores the “tangled web of state and local regulation” that governs sidewalks, with cities often passing along responsibilities for tasks like clearing snow and keeping walkways safe. He paints a portrait of the American sidewalk a disorderly and often neglected network, filled with literal and metaphorical cracks that give rise to all sorts of conflict, from mundane clashes over maintenance to more consequential fights over accessibility and inequality.
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Linda Poon, Bloomberg
That’s a Wrap! Pennsylvania Court Holds Arbitration Clause in Online Agreement Unenforceable
May 14, 2026 —
Gus Sara - The Subrogation StrategistIn Duffy v. Tatum, 2026 Pa. Super. LEXIS 112, 2026 PA Super 41, the Superior Court of Pennsylvania (Superior Court) considered whether an arbitration provision contained in the online Terms of Service on the defendant’s website were enforceable. The plaintiff, Daniel Duffy (Duffy), visited the website of defendant, Dolly, Inc. (Dolly), to purchase moving services. Duffy selected the number of movers, items to be moved and the type of vehicle needed. To complete the booking, the website required Duffy to checkmark a box labeled “By checking this box I accept the Dolly Terms of Service.” Duffy did not have to open the link or scroll to the bottom of the agreement before being able to click on the checkmark box. The Terms of Service included an arbitration provision requiring that any dispute related to the moving services to be resolved by arbitration in accordance with the American Arbitration Association. The Terms of Service did not include any statement that the user was waiving the right to a jury trial. The Superior Court found the internet Terms of Service unenforceable.
During the moving process, an accident occurred and injured Duffy. In May 2024, Duffy and his wife sued Dolly and other related entities alleging negligence and loss of consortium. Dolly filed preliminary objections alleging that the parties agreed to alternative dispute resolution. The lower court overruled the preliminary objections, finding that Dolly’s website did not provide reasonably obvious notice of its Terms of Service to Duffy and, as such, Duffy never agreed to waive his constructional right to a jury trial. Dolly filed an appeal to the Superior Court.
Read the full story...Reprinted courtesy of
Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
