No Bad Faith Despite Insurer’s Appraisal Award Exceeding Initial Payment
August 03, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insurer’s motion for summary judgment, finding no bad faith despite the appraisal award exceeding the amount the insurer initially paid. Jazi Kat 4659 Rockridge LLC, et al. v. Travelers Cas. Ins. Co. of Am., et al., 2026 U.S. Dist. LEXIS 105634 (D. Ariz. May 13, 2026).
Plaintiffs sued Travelers for breach of contract and bad faith, alleging that Travelers failed to pay money plaintiffs were owed under the policy. Plaintiffs held a commercial property policy for two properties. A fire destroyed one of the properties. Travelers adjusted the claim and issued two payments. Plaintiffs disagreed with the amount of the payments and demanded an appraisal. Travelers agreed to the appraisal.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Limitations of Liability Provisions in Construction Contracts: A Means to Manage Risk and Limit Financial Exposure
June 23, 2026 —
Ellen Chapelle, Richard Reizen, Hannah Batsche - Construction ExecutiveTaking a cue from architects and engineers, construction contractors have started inserting limitation of
liability clauses in their construction contracts to manage risk and limit financial exposure. This article will address the specific risks that can be limited through an LOL, tips for negotiating the LOL terms with reluctant owners to cover those specific risks, how to limit unintended consequences of an LOL (such as relieving an insurer of its obligations to cover certain losses), and approaches to setting the amount of the liability cap in the LOL.
Addressing Particular Risks
An LOL can address a wide range of risks, including:
- Damages for delay
- Liability for non-conforming or defective work
- Liability for third-party bodily injury or property damage
- Liability excluded by a general liability policy (e.g., pollution and cyber liability)
- Liability related to intellectual property
Reprinted courtesy of
Ellen Chapelle, Richard Reizen, Hannah Batsche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Substantial Evidence of Flood Loss is Not a Substitute for Required Proof of Loss
April 20, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that the insurer properly denied the insured’s claim for loss due to flood because a proof of loss was never submitted. Bay Haven at Coco Bay Condominium Association, Inc. v. Hartford Ins. Co. of the Midwest, 2026 U.S. Dist. LEXIS 6847 (M.D. Fla. Jan. 14, 2026).
Bay Haven managed several condo buildings. When Hurricane Ian hit, it caused significant flood damage to these properties. Bay Haven held federal flood insurance policies through Hartford under “Write-Your-Own” policies. This meant Hartford was essentially a fiscal agent that managed policies and handled claims but paid them using federal funds.
Following the storm, FEMA extended the usual 60-day deadline for filing a proof of loss to one year, or until September 28, 2023. Bay Haven did not submit its proofs of loss until November 2023. FEMA granted an extension but only for the specific amounts in the November requests. Hartford did not waive the 60-day proof of loss requirement for any other proof of loss. Hartford paid the amounts reflected in the November submissions.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Endorsement is Void Where Compliance is Impossible
September 21, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Sixth Circuit found that the insured’s loss of property due to fire was covered despite noncompliance with an endorsement requiring encompassing the property. 3371 Reading, LLC v. Liberty Mut Group, Inc., et al., 2026 U.S. App. LEXIS 19156 (6th Cir. June 29, 2026).
The insured, 3371 Reading, owned a building undergoing renovation. After the structure burned down, 3371 Reading made a claim under its policy with Ohio Casualty Insurance Company. Ohio Casualty relied on an endorsement requiring fencing round the jobsite.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Fraud Allegations Stymie Additional Insured’s Request for a Defense
May 14, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Federal District Court granted the insurer’s motion to dismiss the insured’s complaint seeking a defense of the underlying case alleging fraud. Renovation Realty, Inc. v. Colony Ins. Co., 2026 U.S. Dist. LEXIS 21409 (S.D. Cal. Jan. 30, 2026).
Mara Fortin sued Renovation Realty and others (“Fortin litigation”) from the fraudulent sale of a residence. The underlying complaint alleged Renovation “deliberately misrepresented of the residence as ‘completely remodeled’ and ‘meticulously maintained’.” The defendants, however, including Renovation, “knew from sources including a pre-renovation termite report documenting fungus and dry rot . . . that the Property harbored pre-existing material defects.”
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Four Families Now Live in the Season Six Rock the Block Homes in Grantsville, Utah
April 20, 2026 —
Hamlet HomesSALT LAKE CITY, April 20, 2026 /PRNewswire/ -- The premier of Rock the Block season seven aired last Monday and is set in Las Vegas, Nevada. Rock The Block is HGTV's highest rated show. Last year, season six was set in Utah and had HGTV's highest rating yet, with over 14 million viewers. All episodes of season six were filmed in the Worthington Ranch community in Grantsville, Utah. The four homes on the show were built by Utah builder Hamlet Homes. During the show, the location of the four Rock The Block homes had to be kept secret and were surrounded by a locked gate. After over a year of being inaccessible, the Utah public was invited in May 2025 to tour the homes and help raise money together for charity. On May 30-31, 2025, Hamlet hosted a 'Rock The Block Party' where the public was able to walk through the homes made famous by the show.
Hamlet Owner, VP of Marketing & Design Tami Ostmark shares stories from the show and her perspective of what it's like to be the builder on a national show like this. Ostmark was on set almost the entire time. "As expected, there were times when there was tension on the set. All four designers were super competitive with each other. It's amazing that the production team was able to produce the show as well as they did. I'm very impressed," said Ostmark.
Another interesting point related to the show is how much work the local builder is responsible for. Some nights as many as 30 Hamlet team members worked through the night to keep up with the pace of production. "Each designer provided their own trusted carpenters to do finishing work. In two of the cases, designers' flew their favorite carpenters in to carry out their visions. Given the quick turnaround, it's not always practical for finishing work to be permanent. Sometimes, it just needs to look appealing on camera," said Ostmark. This is frequently referred to as 'TV Magic'. "When the show was over, Hamlet re-did any areas that required extra attention". The show really does shoot in only 7 weeks as depicted. This creates a fast pace that was very exciting to be a part of", continued Ostmark. All four of the homes featured on the show have since been purchased; four Utah families currently call them home.
ABOUT HAMLET HOMES
Hamlet Homes (www.hamlethomes.com) crafts quality customer-oriented townhomes and single-family homes located in attractively designed communities in Utah and Idaho. Since the company's founding in 1995, Hamlet has built over 5,000 homes in 80 communities. The company is a proud recipient of many awards on Sustainable Business & Design, Quality Builder Awards; recognized both locally and nationally. Named by the Salt Lake Chamber of Commerce as the 'Veteran Owned Small Business of the Year, in 2019'. Hamlet has since been named several times to the Professional Builder's Housing Giants List and annual HOME AWARDS Best Customer Experience. Most recently in 2026, Hamlet was named Utah's 'Best of State for Real Estate Development and Utah Businesses 'Best Companies to Work For' for the 6th consecutive year.
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
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