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.
Contractor Entitled to Defense Under Subcontractor’s Policy
March 10, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court affirmed the trial court’s grant of summary judgment to the contractor’s insurer finding that the sumcontractor’s insurer had a duty to defend the contractor. Navigators Specialty Ins. Co. v. TBR Construction, LLC, et al., 2025 Ill. App. Unpub. LEXIS 2177 (Ill. Ct. App. Dec. 3, 2025).
Greenscape Homes, LLC was the general contractor for a residential development. Greenscape hired TBR Construction, LLC as a carpentry-framing subcontractor pursuant to a “Trade Contractor Agreement.” The Trade Agreement required TBR to name Greenscape as an additional insured. TBR was insured by Utica. Greenscape was insured by Navigators.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
HHMR Honored as a 2026 Denver Business Journal Best Places to Work Recipient
March 10, 2026 —
David McLain - Colorado Construction Litigation BlogWe are pleased to share that Higgins, Hopkins, McLain & Roswell has been named a 2026 Denver Business Journal Best Places to Work honoree, a recognition grounded entirely in direct feedback from our own team members.
The Denver Business Journal Best Places to Work program, in partnership with Quantum Workplace, ranks organizations based on anonymous employee engagement survey results that measure culture, leadership, communication, trust, team dynamics, and satisfaction. This year’s list includes 65 companies across the Denver metropolitan area, judged by the people who know these workplaces best: their employees.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Balancing the Right to Repair With Evidence Preservation in Construction Defect Litigation
April 20, 2026 —
Benton Wheatley & Anna Spicer - Construction ExecutiveEvery major construction project comes with risk, whether it’s a
warehouse build, a
multifamily development or a major renovation. Parties tend to be aligned when things are proceeding as planned. But when something goes wrong—cracked concrete, water intrusion, systems that don’t perform as expected—those interests can quickly diverge.
Property owners are often caught in the middle when construction defects surface. They’re expected to act quickly to limit damage and costs. But they also have legal obligations to preserve evidence and allow potentially responsible parties, such as contractors or designers, to observe testing, demolition and repairs. Additionally, owners often have duties to lenders and investors to fix problems promptly and pursue claims against those responsible. Meanwhile, contractors and other parties have obligations of their own—not to interfere with repairs and not to delay mitigation efforts while investigations are underway.
What follows will examine how those competing responsibilities play out in construction defect disputes.
Reprinted courtesy of
Benton Wheatley & Anna Spicer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Real Estate & Construction News Roundup (7/15/26) – The World Cup’s Effect on Commercial Real Estate, Megadeals Lift CRE Sales and Algorithmic Pricing Lawsuits Continue
July 27, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, DOT earmarks $1.73B in BUILD grants, federal housing bill becomes law, data center surge cools off, and more!
- Data center planning cooled off month over month from “extraordinary levels” to start the summer, while other areas of construction finally picked up a little steam. (Sebastian Obando, Construction Dive)
- The U.S. Department of Transportation announced $1.73 billion in 2026 BUILD grants covering 127 projects across 50 states, Washington, D.C., American Samoa, Guam and Puerto Rico. (Joe Bousquin, Construction Dive)
- As algorithmic pricing lawsuits continue to play out around the country, more apartment owners and managers have settled. (Julie Strupp, Multifamily Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
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
A New Vision for Safety: Construction Safety Week’s Five-Year Plan
February 17, 2026 —
Adam Jelen - Construction ExecutiveConstruction Safety Week has long been a powerful show of force—a catalyst for bringing the industry together and focusing on the critical importance of health and safety. Over the last decade, we’ve made meaningful strides: advancing best practices, transitioning from hard hats to helmets, shedding light on vital issues such as mental health, fostering a culture of care and accountability and creating partnerships and initiatives that improve jobsite safety.
Building on the progress we’ve made, we’ve launched a bold five-year vision to bring everyone together with trust and respect and to drive alignment in how safety is understood, owned and engineered at every step of the project. This is an industrywide effort to further deepen the culture of care centered around respect for the skilled craft and through all aspects of a project where all team members share this responsibility, this respect, across every phase: design, planning, construction and beyond.
Reprinted courtesy of
Adam Jelen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Protect Your Projects By Identifying and Controlling Hidden Contract Risks
March 10, 2026 —
Larry Borda & Daniel Lund III - JD SupraIn a recent webinar entitled “
Spreading the Risk and Avoiding Killer Contract Clauses,” Phelps lawyers Daniel Lund and Larry Borda examined contractual provisions that most often expose construction professionals to unexpected financial and legal risk. While construction contracts may appear routine, each contract serves as the primary mechanism for managing, allocating, and mitigating risk among parties involved in complex projects—often valued in the hundreds of millions or billions of dollars. When parties fail to fully understand the terms they sign, costly and avoidable consequences frequently follow.
Contracts as Risk-Transfer Instruments
Construction contracts are the primary method for transferring risk. While contracts authorize work and define scope, they also allocate responsibility for the risks inherent in construction projects. Some may imagine a world where a one-page agreement and a set of plans would suffice. In reality, modern construction requires detailed agreements—particularly provisions designed to anticipate problems, distribute burdens and reduce disputes.
Reprinted courtesy of
Larry Borda, Phelps and
Daniel Lund III, Phelps
Mr. Borda may be contacted at larry.borda@phelps.com
Mr. Lund may be contacted at daniel.lund@phelps.com
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