Seventh Circuit Finds “Additional Insured” Requirements Met Where Non-Party Subcontractor Was Proximate Cause of Underlying Injuries
February 23, 2026 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Atlanta Gas Light Company et al v. Navigators Ins. Co., Nos. 24-2888 & 24-2889 (7th Cir. Jan. 22, 2026), the Seventh Circuit Court of Appeals assessed whether an upstream contractor was an “additional insured” under an umbrella policy issued to its subcontractor. Atlanta Gas and Southern Company Gas (“AGL”) hired United States Infrastructure Corporation (“USIC”) to locate and mark gas lines that AGL owned throughout Georgia. In 2018, USIC failed to mark a gas line in Homerville, Georgia, and a boring company struck it, leading to an explosion that severely injured three women. The victims settled their claims with USIC but did not come to terms with AGL. AGL eventually did settle with the victims, but only after they sued AGL in Georgia state court (the “Underlying Suits”). AGL’s service agreement with USIC required USIC to obtain primary and excess liability insurance coverage that included AGL as an additional insured. Because USIC’s settlement with the victims exhausted its primary policy, AGL tendered the defense and indemnification of the Underlying Suits to USIC’s excess insurer, Navigators. Navigators denied the request on the ground that AGL was not an “additional insured” under the policy.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Seventh Circuit, With an Assist From the Illinois Supreme Court, Finds That “Pollution Exclusion” Bars Coverage For Emissions Allowed Under Regulatory Permit
April 20, 2026 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Griffith Foods Int’l Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 24-1217 & 24-1223 (7th Cir. Mar. 13, 2026), the Seventh Circuit addressed the meaning and scope of a pollution exclusion in a standard-form commercial general liability insurance policy for underlying injuries caused by ethylene oxide (EtO) emissions. The insurance dispute arose out of underlying tort litigation involving bodily injury claims, including cancer, allegedly caused by emissions of ethylene oxide over a 35-year period from 1984 through 2019 by Griffith Foods International and later Sterigenics U.S. The pollution exclusion at issue generally barred coverage for “bodily injury” arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, or other irritants, contaminants or pollutants.
Interpreting similar exclusions, the Illinois Supreme Court has previously held that the standard CGL pollution exclusion bars coverage for bodily injuries caused by traditional environmental pollution (essentially industrial emissions of pollutants), but not by more commonplace emissions (such as carbon monoxide from a residential furnace or excess chlorine in a backyard swimming pool). See American States Insurance Co. v. Koloms, 177 Ill. 2d 473 (Ill. 1997). In Griffith Foods, the District Court initially concluded that the pollution exclusion did not apply because the companies emitted EtO pursuant to a permit issued by the IEPA. The District Court reached this latter conclusion by applying Erie Insurance Exchange v. Imperial Marble Corp., 957 N.E.2d 1214 (Ill. App. Ct. 2011), an Illinois intermediate appellate court decision finding it ambiguous whether a CGL policy’s pollution exclusion barred coverage for emissions authorized by regulatory permit.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Applying Jury Verdict Method in Quantifying Damages Due to Defective Specifications
March 31, 2026 —
David Adelstein - Florida Construction Legal UpdatesAn older case deals with three important considerations: (1) defective specifications; (2) whether the defective specifications were misleading or misrepresentative; and (3) applying the jury verdict method in quantifying damages.
In Metric Construction Co., Inc. v. U.S., 80 Fed. Cl. 178 (Fed. Cl. 2008), a contractor was contracted by the federal government to construct a warehouse. There were defects in the structural steel design specifications underlying the standing seam metal roof installed by the contractor and, as a result, the roof system leaked causing damage. The contractor incurred significant costs in repairing the damage, and pursued recovery of these costs against the government. The contractor claimed the structural steel design serving as the framework for the metal roof was defective and misleading and caused the leaks.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
CEO: Power Isn’t the Only Electrical Challenge for AI Data Centers
April 14, 2026 —
Francesco "Frio" Iorio - Engineering News-RecordEveryone knows that data centers are voracious consumers of electricity. In fact, the U.S. is currently scrambling to meet unprecedented levels of power demand not seen since
the early days of electrification and the widespread adoption of air conditioning.
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Francesco "Frio" Iorio, Engineering News-RecordENR may be contacted at
enr@enr.com
The GKN Aerospace Chemical Release and the Laws Designed to Address It
July 06, 2026 —
Sean M. Sherlock - Snell & WilmerOn May 21, 2026, a 34,000-gallon storage tank at the GKN Aerospace facility in Garden Grove, California began leaking methyl methacrylate (MMA), a volatile and highly flammable industrial chemical used to manufacture high-strength acrylic plastics. GKN Aerospace makes advanced military and commercial transparencies, such as aircraft canopies, windshields, cabin windows, bullet-resistant glass, and spacecraft windows.
In polymer chemistry lingo, MMA is known as a monomer. Monomers are like individual links to a chain. Under the right conditions they link up (react) with each other to form long-chained polymers, or plastics. MMA is an unstable monomer that requires controlled storage conditions to avoid setting off a polymerization (chain) reaction.
According to early reports, the MMA tank at GKN Aerospace overheated. The cause of the overheating is not yet clear, but the overheating may have created conditions enabling the MMA to initiate polymerization, which in turn generated heat, which in turn generated pressure, activating the tank’s pressure-relief system and releasing MMA vapor into the atmosphere. Concerns about a runaway reaction, massive release, and explosion led the Orange County Fire Authority to order evacuation of approximately 40,000 residents and closure of thirteen schools.
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Sean M. Sherlock, Snell & WilmerMr. Sherlock may be contacted at
ssherlock@swlaw.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 AVOID Act: A New Timeline for Liability in New York Construction Projects
February 23, 2026 —
Meghan Douris - The Construction SeytBy April 18, 2026, New York construction litigation will operate on a faster—and far less forgiving—timeline. The Avoiding Vexatious Overuse of Impleading to Delay (the “AVOID Act”), signed into law on December 19, 2025, fundamentally rewrites third‑party practice under CPLR § 1007 by imposing strict deadlines to bring subcontractors, suppliers, and other responsible parties into a case.
For owners, developers, general contractors, and their in‑house counsel, this change will shift risk assessment, contract enforcement, and litigation strategy to the very front end of a claim—particularly in New York Labor Law and construction defect cases.
What Changed—and Why It Matters to Construction Cases
Historically, New York defendants could implead subcontractors and other players well into discovery. The AVOID Act ends that practice.
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Meghan Douris, Seyfarth Shaw LLPMs. Douris may be contacted at
mdouris@seyfarth.com
Anomaly in Adding a Third-Party Claimant to a Liability Insurance Coverage Dispute
May 05, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn an insurance coverage lawsuit seeking declaratory relief, an insurer sued the third-party claimant. The insurer was seeking a declaration that there was no coverage, which naturally would impact the third-party claimant. The insured did not respond to the lawsuit and the insurer moved for a default judgment which was objected to by the third-party claimant. The trial court granted a final judgment in favor of the insurer, which prompted an appeal from the third-party claimant because the final judgment impacts its rights to coverage if it obtains a judgment against the insured.
The appellate court reversed but please take a look at this Court’s discussion on the issue of an insurer adding a third-party claimant to a coverage lawsuit when then the third-party cannot pursue a direct claim against the insurer until it obtains a settlement or judgment against the insured. It presents an interesting argument and counter-point for a third-party claimant that is added to the coverage lawsuit which has implications if it obtains a judgment against the insured:
This case involves an apparent anomaly in Florida law. It is well-established that third-party claimants injured by an insured’s negligence have a right as third-party beneficiaries to payment from the insured’s insurance proceeds. It is equally well-established that the third-party claimants’ rights in this regard do not accrue unless and until they obtain a verdict or settlement against the insured. A quick review of this law is helpful at this point.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com