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
Engineering Seals Versus Contracts ‘Under Seal’ (Two Very Different Things)
May 05, 2026 —
Melissa Dewey Brumback - Construction Law in North CarolinaRecently, I was asked by a reader to explain the difference between a document that is
‘sealed’ by an engineer (or architect) and one that is
signed ‘under seal’. This question prompted this post, as others may also be wondering about the distinction. [Hi Ed! Thanks for your question]
Professionals have ‘seals’ that show that they are registered (Engineers) or licensed (Architects). As most of you likely know, your professional seal is something that is hard won and which is used when—and only when—your plans were made by you or someone under your direct supervisory control. Your signature represents that you were in
responsible control over the documents, and that they have met the required professional standard of care. (21 NC Admin Code 2-0206 (a)(11)).
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Colorado Legislature Considers Series of Bills Aimed at Boosting Affordable Housing Construction in Colorado — What Homebuilders Need to Know
April 08, 2026 —
Amanda E. McKinlay - Snell & WilmerOn January 21, 2026, lawmakers introduced a series of bills with the goals of addressing affordable housing issues and incentivizing construction in Colorado.
House Bill 26-1001 (known as the “Housing Opportunities Made Easier ‘HOME’ Act”) concerns the promotion for residential developments on “qualifying properties” that do not contain exempt parcels through the bypassing of often time-consuming local planning processes. Under HB26-1001, a “qualifying property is any real property that contains no more than five acres of land and is owned by: (i) a nonprofit organization with a demonstrated history of providing affordable housing; (ii) a nonprofit organization that provides public transit; (iii) a nonprofit organization that has entered into an agreement with another nonprofit organization with a demonstrated history of providing affordable housing, provided that the agreement requires the nonprofit organization with a demonstrated history of providing affordable housing to develop a residential development on the property; (iv) a school district; (v) a state college or university; (vi) a housing authority; or (vii) a local or regional transit district or a regional transportation authority serving one or more counties.
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Amanda E. McKinlay, Snell & WilmerMs. McKinlay may be contacted at
amckinlay@swlaw.com
GRSM Team Obtains Defense Verdict for Homeowners’ Association in Orange County Superior Court
July 20, 2026 —
Gordon Rees Scully MansukhaniA Gordon Rees Scully Mansukhani multi-state team, including Partners Christine Barker, Sean Ferron, and Keith Cramer, obtained a defense verdict on behalf of a homeowners’ association (HOA) in an Orange County Superior Court bench trial spanning two months.
The case began in 2022 when a homeowner sued after the Architectural Review Committee and HOA Board of Directors declined his teardown-and-rebuild plans due to view and aesthetic concerns. After a motion for summary judgment ruling in which the court found that the existing covenants, conditions, and restrictions (CC&Rs) did not protect views, the HOA held a special election to add explicit view protections to the CC&Rs. At the February 2025 trial call, the plaintiff sought leave to file a third amended complaint challenging the validity of that vote, drastically reframing the case from CC&R enforcement to one of election validity. A second plaintiff then filed a parallel action toward the end of the limitations period, and the two cases were consolidated.
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Gordon Rees Scully Mansukhani
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
Insurer Granted Summary Judgment, in Part, After Partial Payment of Claim
February 10, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer was awarded summary judgment, in part, after paying a portion of the insured’s claim for hurricane damage. Taylor v. State Farm Fire & Cas. Co., 2025 U.S. Dist. LEXIS 231406 (S.D. Ala. Nov. 24, 2025).
The Taylors’ home was damaged by Hurricane Sally. They submitted a claim under their homeowners’ policy to State Farm. They reported trees collapsing onto the house and blocking the front door, broken windows and doors, water damage and the roof collapsing in certain rooms of the house.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Managing Tariff Volatility in Cross‑Border U.S. Construction Projects: Practical Contract‑Drafting and Procurement Strategies
March 10, 2026 —
Sara Beiro Farabow & Michael Wagner - The Construction SeytVolatile U.S. tariff announcements continue to affect international supply chains for U.S. construction projects. Although recent litigation has centered on the scope of presidential tariff authority rather than construction‑specific disputes, these decisions carry important implications for how parties structure risk in their contracts. In May 2025, the U.S. Court of International Trade (CIT) struck down certain “Liberation Day” tariffs as exceeding presidential authority under IEEPA. A federal district court in Washington, D.C. likewise issued a preliminary injunction suspending related tariffs—though it later stayed its own order pending appeal. And the Supreme Court has agreed to review cases addressing the legal limits of IEEPA‑based tariffs.
While none of these developments arises from construction disputes, the themes they highlight—timing, statutory authority, and documentation—mirror the issues encountered when tariff conditions disrupt international procurement. The following strategies reflect practical steps U.S. project owners, contractors, and foreign suppliers can take to mitigate risk, drawing on drafting approaches now widely used across major construction forms, including—but not limited to—modified AIA agreements.
Reprinted courtesy of
Sara Beiro Farabow, Seyfarth Shaw LLP and
Michael Wagner, Seyfarth Shaw LLP
Ms. Farabow may be contacted at sfarabow@seyfarth.com
Mr. Wagner may be contacted at mewagner@seyfarth.com
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AI & Digital Tools on Construction Projects: Contract Risks to Address Before Peak Season
April 08, 2026 —
Meghan Douris - The Construction SeytArtificial intelligence and advanced digital tools are no longer experimental on construction projects. In Q1 of 2026, we can already see how they are already influencing schedules, estimates, submittals, safety reporting, and day‑to‑day project documentation. As peak construction season approaches, many teams are accelerating adoption of AI to gain efficiency.
What often lags behind, however, is the contract framework governing how those tools are used—and how their outputs are treated when something goes wrong.
On sophisticated construction projects, that gap can quickly become a dispute driver.
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Meghan Douris, Seyfarth Shaw LLPMs. Douris may be contacted at
mdouris@seyfarth.com
