Insurer Cannot Dispose of Water Leak or Bad Faith Claims on Motion for Summary Judgment
July 20, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for summary judgment seeking to eliminate the insured’s claims for damage from a water leak, bad faith and punitive damages failed. Nargizyan v, State Farm General Ins. Co., 2026 Cal App. LEXIS 302 (Cal. Ct. App. April 15, 2026).
The insured noticed tiles on his kitchen floor were warmer than usual. He found water dripping from the top of the crawl space under the house. He noticed water was “dripping in different places” but not pouring like a faucet. “There were too many places to count where water was dripping and there was water all over the place.”
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
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.
Location, Location, Location — But Which One? The Few Words in Your Construction Contract that Pick Where You Fight
June 29, 2026 —
Brad Sands - ConsensusDocsMost professionals know the old real estate line: location, location, location. It turns out to be just as true for construction contracts as it is for property.
Consider a recent case involving a project owner that hired two design firms for a project. When issues arose during construction, the owner sued the design firms in state court in Brazoria County, Texas, pursuant to the forum selection clause in the parties’ contracts. The defendants then removed the case to the federal district court in Galveston, a courthouse in a different county. But the owner wanted the case back in Brazoria County state court. Whether it got its wish came down to two words in the contract: “situated in.” This article is about words like those.
A construction contract’s forum selection clause names the place for the fight nobody plans to have, and where that fight happens can shape how it goes. This article explains why the wording in your forum selection clause deserves careful reading before you sign a construction contract. It is not a deep dive into the mechanics of federal removal jurisdiction, and it is not an academic comparison of the terms “forum” and “venue.” Instead, it is a practical look at how courts actually read these clauses, so the location of a future fight is the one you intended.
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Brad Sands, Jones Walker, LLPMr. Sands may be contacted at
bsands@joneswalker.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
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The Firm Turns 16!
July 20, 2026 —
Christopher G. Hill - Construction Law MusingsI have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks the 16th anniversary of
my first day as a solo practitioner of construction law at
The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 16 years without the support of the best wife and family that any construction lawyer could want.
Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) has graduated from N. C. State University with a fisheries and wildlife biology degree and is currently in Casper, Wyoming working for
Wyoming Game & Fish, my second oldest is an assistant director of admissions at
Appalachian State University in Boone, NC, and has celebrated his second wedding anniversary, and my oldest has celebrated her fifth marriage anniversary. Our home in Captiva, Florida continues its recovery from from Hurricane Ian and subsequent hurricanes.
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The Law Office of Christopher G. Hill
Self-Healing Infrastructure Could Pave the Road to the Future
May 05, 2026 —
Allan C. Van Vliet - Gravel2Gavel Construction & Real Estate Law BlogA single hairline crack in a bridge deck can seem insignificant. But left undetected, minor cracks and fissures expand, water seeps in, steel corrodes and repair costs start to increase. This risk multiplies across thousands of miles of aging highways and bridges nationwide.
As infrastructure endures increasing strain from heavier traffic, extreme weather and deferred maintenance, engineers are exploring “self-healing” systems, where streets and bridges are built with materials that can repair themselves. Concrete, asphalt and composites capable of detecting and mending microcracks autonomously are moving from laboratory research to pilot projects. But while emerging technology promises longer-lasting infrastructure, it also raises questions about long-term maintenance, performance guarantees, procurement frameworks and risk allocation.
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Allan C. Van Vliet, PillsburyMr. Van Vliet may be contacted at
allan.vanvliet@pillsburylaw.com
The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues
August 03, 2026 —
William L. Porter - Porter Law GroupIt is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction.
Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
White and Williams LLP Secures a Clean Sweep Dismissal of Architect's Professional Liability Coverage Lawsuit
August 16, 2026 —
Daniel E. Bryer & Brendaliz Minaya Ruiz - White and Williams LLPWhite and Williams LLP achieved a complete dismissal of professional liability coverage claims through a strategic defense led by Insurance Coverage and Bad Faith Practice Group attorneys Daniel E. Bryer, Partner and Brendaliz Minaya Ruiz, Associate.
In a nuanced action styled, Vincent Cusumano Architect P.C., et al. v. Berkshire Hathaway Direct Insurance Company, et al., decided in the U.S. District Court for the District of New Jersey, plaintiffs asserted twelve pre-contractual and contractual-based causes of action against their liability insurer, Berkshire Hathaway Direct Insurance Company, and its insurance agent (collectively, “Defendants”) for denying a professional liability claim arising from plaintiffs’ prior work.
Reprinted courtesy of
Daniel E. Bryer, White and Williams LLP and
Brendaliz Minaya Ruiz, White and Williams LLP
Mr. Bryer may be contacted at bryerd@whiteandwilliams.com
Ms. Ruiz may be contacted at minayaruizb@whiteandwilliams.com
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