The Great Escape: Non-Invalidation Clauses and Property Damage Claims
October 20, 2026 —
Abigail Smith & Kaarthiga Manimaran - SDV FenchurchAt their core, non-invalidation clauses (“NICs”) recognise an important commercial reality: an insured cannot control everything that happens at its premises.
In the event that an insured finds itself in breach of a condition or warranty owing to events that have increased the risk of damage to its property, but which were outside its authority, knowledge or beyond its control, a NIC may prevent the insurer from avoiding the claim. For that reason, they’re an important tool in an insured’s coverage arsenal.
Although there is relatively little caselaw on NICs, their purpose was recognised in The Seashell of Lisson Grove Ltd v Aviva Insurance Ltd [2011] EWHC 1761 (Comm) (on which we wrote a previous article –
The Good, the Bad & the Ugly: #26 The Good: The Seashell of Lisson Grove Ltd v Aviva)
Reprinted courtesy of
Abigail Smith, SDV Fenchurch and
Kaarthiga Manimaran, SDV Fenchurch
Ms. Smith may be contacted at abigail.smith@sdvfenchurch.uk
Ms. Manimaran may be contacted at kaarthiga.manimaran@sdvfenchurch.uk
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Sausage-Making Often Relies on the Good Sense of the Chef Rather than the Recipe
June 23, 2026 —
Garret D. Murai - California Construction Law BlogEven for lawyers, the rules governing litigation can get complex and convoluted. Does something need to be filed? What needs to be filed? When is the deadline for filing?
Simple questions with not always with straightforward answers.
This was the case in
R & J Sheet Metal, Inc. v. W.E. O’Neil Construction Co. of California, 111 Cal.App.5th 878 (2025), which involved sheet metal panels lost when they fell into the Port of Long Beach harbor.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination
June 08, 2026 —
Paul Williamson - ConsensusDocsVolumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[
1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[
2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[
3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[
4]
As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor.
Read the full story...Reprinted courtesy of
Paul Williamson, Peckar & Abramson, P.C.Mr. Williamson may be contacted at
pwilliamson@pecklaw.com
Insurer Granted Summary Judgment on Claim for Roof Damage Caused by Windstorm
May 26, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer successfully moved for summary judgment, eliminating the insured’s claim for roof damage due to windstorm. Mulas v. Westchester Surplus Lines Ins. Co., 2026 U.S. Dist. LEXIS 20537 (Jan. 30, 2026).
The insureds’ commercial property sustained windstorm damage during Hurricane Ian. Westchester denied the claim. The insureds believed Westchester wrongfully denied coverage for roof damage and various interior damage to property. The insureds also argued that Westchester’s actual cash value (ACV) payment did not reflect the fully insured loss.
The insureds sued and Westchester moved for summary judgment. Westchester argued the roof damage was not covered because Hurricane Ian did not cause the damage. Westchester hired an engineer who determined the roof damage was not caused by wind from Hurricane Ian. Westchester pointed out that the insureds’ expert also found no wind damage on the roof. The insureds offered no other evidence suggesting the hurricane caused roof damage. Therefore, the insureds could not show that Westchester breached the policy by denying coverage.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Perennial Question, Perennial Answer? EPA and Army Corps Propose Year-Round Standard for WOTUS that Could Reshape Clean Water Act Jurisdiction
October 12, 2026 —
Ashleigh K. Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law BlogFederal Clean Water Act jurisdiction may be about to get considerably narrower. On September 4, 2026, the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) announced a supplemental notice of proposed rulemaking that would limit federal authority over streams and wetlands to those containing water year-round—a “perennial” standard that would go beyond even what the Supreme Court required in Sackett v. EPA, 598 U.S. 651 (2023). The supplemental notice offers two options for revising the definition of “waters of the United States” (WOTUS) under the Clean Water Act (CWA): One would define “relatively permanent” waters as perennial, and the other would require perennial surface water to establish a wetland’s continuous surface connection to a jurisdictional water. If adopted, either option would substantially reduce the number of streams, wetlands and other water features subject to federal permitting, with the sharpest effects in arid and semi-arid regions where rainfall patterns leave many waterways dry for portions of the year.
Reprinted courtesy of
Ashleigh K. Myers, Pillsbury and
Jillian Marullo, Pillsbury
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
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In-House Insight at CSC
October 26, 2026 —
Elaine Y. Lee - Peckar & Abramson, P.C.Elaine Y. Lee, Partner in P&A’s Los Angeles office, sat down with Third Thursday to discuss effective collaboration with in-house counsel, strategies for resolving construction disputes, and the factors that can help determine the best path forward. This discussion previews her upcoming
Construction Super Conference panel, “Same But Different: How In-House Legal Teams Vary in Approach, Role, and Decision-Making,” on December 2nd.
Read the full story...Reprinted courtesy of
Elaine Y. Lee, Peckar & Abramson, P.C.Ms. Lee may be contacted at
elee@pecklaw.com
11 Payne & Fears Attorneys Honored by Best Lawyers
August 24, 2026 —
Payne & FearsCongratulations to the 11 Payne & Fears attorneys included in the 2027 Edition of “Lawyer of the Year” and The Best Lawyers In America®. Attorneys have been recognized in the following practice areas:
“Lawyer of the Year” (2027 Edition)
Orange County
The Best Lawyers in America® (2027 Edition)
Irvine, CA
- Jeffrey K. Brown
- Employment Law – Management
- Labor Law – Management
- Litigation – Labor and Employment
- Daniel F. Fears
- Employment Law – Management
- Labor Law – Management
- Litigation – Labor and Employment
- Daniel M. Livingston
- Commercial Litigation
- Litigation – Real Estate
Read the full story...Reprinted courtesy of
Payne & Fears
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.