Insured General Contractor Prevails on Motion for Summary Judgment to Establish Builder’s Risk Coverage
July 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe general contractor’s motion for partial summary judgment successfully established that damage to footings in place before the policy period was covered after the collapse of a building. Big D Builders, Inc. v. Am Zurich Ins. Co., 2026 U.S. Dist. LEXIS 72012 (D. Idaho March 31, 2026).
Big D was the general contractor for building a new airplane hangar by erecting a 38,000 square foot structure. Before Big D began construction, the site of the hangar did not contain any pre-existing structures or buildings. Before completion of the hangar, it collapsed and caused extensive property damage.
The builder’s risk policy issued by Zurich covered certain aspects of the construction project for the policy period December 28, 2023, to December 28, 2024. Zurich accepted coverage for most of the damage but not for damage to footings and columns installed prior to the start date of 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
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.
Ayushi Neogi Published in ADC Defense Comment on Arbitration in Evolving Plaintiff-Friendly Landscape
May 12, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Senior Counsel Ayushi Neogi has authored an article in the Association of Defense Counsel of Northern California and Nevada’s Defense Comment magazine examining the shifting landscape of arbitration following the Ending Forced Arbitration Act.
Titled “Compelling Arbitration in a Post-Ending Forced Arbitration Act, Plaintiff-Friendly Landscape,” the article analyzes how recent legislative changes are reshaping arbitration strategy, particularly as employees gain greater ability to bypass arbitration in certain claims. Neogi provides practical insight into how courts are responding and what this means for defense counsel navigating increasingly complex and plaintiff-friendly environments.
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Gordon Rees Scully Mansukhani
Chambers USA Recognizes GRSM as 2026 Industry Leader
June 29, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani has once again been recognized by Chambers USA, a prestigious directory of the country’s top law firms. In addition to the firm’s practice recognitions, eight partners, David Capell, Nancy Erfle, Matthew Foy, Ashlee Grant, Craig Heryford, Andrew Port, Todd Regan, and Angela Richie, were recognized among the nation’s top lawyers in their respective fields.
Chambers USA recognized the firm in the following eight categories:
USA – Nationwide – Insurance: Dispute Resolution: Insurer, Band 4
The firm is widely sought after by national insurance sector clients facing a wide array of coverage disputes as well as bad faith claims. The firm has additional capabilities in class actions and appellate litigation. Its broad base of experience includes professional liability, construction, and bankruptcy-related issues. This is the third year the firm has received this recognition.
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Gordon Rees Scully Mansukhani
Alexander Hopkins Authors Law360 Article on Wisconsin Supreme Court Coverage Decision
October 06, 2026 —
Alexander G. Hopkins - SDV FenchurchAlexander Hopkins recently authored an Expert Analysis for Law360 examining a recent Wisconsin Supreme Court decision addressing coverage for water damage arising from alleged construction defects.
In “Wis. Coverage Ruling Rejects Strict Ensuing Loss Test,” Alex explores the relationship between construction defect exclusions and ensuing loss provisions, and what the decision means for policyholders seeking coverage when an excluded condition contributes to subsequent damage.
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Alexander G. Hopkins, SDV FenchurchMr. Hopkins may be contacted at
alexander.hopkins@sdvfenchurch.us
Fight for Your Right: Effects of FAR Final Rule on Construction
October 12, 2026 —
Michael Altman - Construction ExecutiveSince the Federal Acquisition Regulation final rule Use of Project Labor Agreements for Federal Construction Projects took effect, contractors seeking to compete for federal projects of $35 million or more must “negotiate or become a party to a project labor agreement with one or more labor organizations.” While this requirement significantly reduces competition for covered procurements, contractors may seek to restore competition on individual solicitations by filing a bid protest with the U.S. Court of Federal Claims.
Bid protests through the COFC become possible once a federal agency posts a solicitation that includes contract provisions mandating a PLA. (In some cases, a presolicitation notice that a PLA mandate will be applied may be sufficient.)
Reprinted courtesy of
Michael Altman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Mr. Altman may be contacted at
altman@abc.org
New Executive Order Prohibits Federal Contractors from Engaging in DEI Through Employment and Procurement Activities
April 27, 2026 —
Laura De Santos & Monica Prieto - Gordon Rees Scully MansukhaniOn March 26, 2026, President Trump signed Executive Order 14398, entitled Addressing DEI Discrimination by Federal Contractors, requiring federal agencies to add contractual language in all federal contracts prohibiting contractors and subcontractors from engaging in any racially discriminatory DEI activities, as defined by the Executive Order (EO).
While this EO includes language similar to prior DEI-related orders, it introduces a significant expansion in enforcement by subjecting non-compliant contractors to liability under the False Claims Act (FCA), including exposure to whistleblower actions and qui tam litigation. A qui tam claim is a civil action by a private individual on behalf of the government alleging fraud against federal programs and seeking to recover damages.
The new EO states that involvement in any racially discriminatory DEI activities is not only unethical and illegal, but also deemed fraudulent against federal programs because it is material to the government’s payment decisions. The definition of DEI activities here matters, as this EO expands a contractor’s obligations beyond the management of its employment policies and includes prohibitions against funding or expending time or resources on DEI activities and contracting with subcontractors, vendors, or suppliers utilizing DEI programs.
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Laura De Santos, Gordon Rees Scully MansukhaniMs. De Santos may be contacted at
ldesantos@grsm.com
Court Denies Cross Summary Judgment Motions on Coverage for Odors in Newly Purchased Home
October 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court denied cross motions seeking to establish whether the policy covered damage due to smells in the insureds’ newly purchased home. Akina v. State Farm Fire & Cas. Ins. Co., 2026 U.S Dist. LEXIS 162817 (W. D. Wash. July 22, 2026).
Plaintiffs bought a home in May 2024 but never conducted an inspection before purchasing the property. Before moving in, plaintiffs secured a homeowners’ polilcy from State Farm.
After moving in, plaintiffs began noticing smells in the house and started suffering from health symptoms. Plaintiffs learned from neighbors that the prior occupants had been witnessed in “drug activity.” Plaintiffs moved out of the house and had testing done. The home tested positive for methamphetamine pollution.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
