New York Amends Prompt Payment Act: Retainage Above 5% in Private Construction Contracts Now Void
February 10, 2026 —
Mark A. Snyder, Levi W. Barrett, Patrick T. Murray & Skyler L. Santomartino - Peckar & Abramson, P.C.In 2023 New York overhauled its Prompt Payment Act. The
2023 amendments, largely aimed at restricting the amount of retainage that can be withheld on private projects, were unclear about whether parties could contract around the statute, as they can with other provisions of the statute. The State Legislature recently clarified that issue.
On December 19, 2025, New York enacted a new law, tightening the State’s Prompt Payment Act retainage laws by amending the Prompt Payment Act under General Business Law § 757. Under § 757, the new law renders void any contract provision in private construction contracts that requires retainage in excess of 5% of the total contract sum, meaning owners cannot hold more than 5% from their prime contractors and prime contractors cannot hold more than 5% from their subcontractors.
Reprinted courtesy of
Mark A. Snyder, Peckar & Abramson, P.C.,
Levi W. Barrett, Peckar & Abramson, P.C.,
Patrick T. Murray, Peckar & Abramson, P.C. and
Skyler L. Santomartino, Peckar & Abramson, P.C.
Mr. Snyder may be contacted at msnyder@pecklaw.com
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Murray may be contacted at pmurray@pecklaw.com
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com
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Agent Not Liable for Loss Given Insured’s Vague Instructions for Coverage
April 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court affirmed the district court’s grant of summary judgment to the insured’s agent because there was no breach of duty. Jon Van Order v. Hauk, et al., 2025 Ill. App. Unpub. LEXIS 2378 (Ill. Ct. App. Dec. 23, 2025).
The insured began renovating a vacant home in October 2018. He met with agent Joseph Hauk and explained the property was vacant and would be going through renovations for the next several months. Hauk then procured a policy through Shelter Insurance Company insuring the vacant property against several specified perils. The policy provided coverage for water damage if “[t]he exterior of the building sustained a covered loss” and “that loss created an opening through which the water entered.” Damage caused by escaping water from within a plumbing system was excluded if: (1) the damage was caused by a “continuous or repeated leakage over a period of fourteen days or more” or (2) the insured premises had been vacant for 30 consecutive days immediately preceding the loss.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
WSHB Managing Partner Chad Dunigan Named Finalist for Jerrold S. Oliver "Ollie" Award of Excellence
May 12, 2026 —
Wood Smith Henning BermanChad Dunigan, Managing Partner of Wood Smith Henning & Berman's Orlando, Florida, office, has been selected as one of just four finalists for the prestigious Jerrold S. Oliver Award of Excellence, affectionately known in the construction defect community as the "Ollie" Award. This distinguished honor recognizes individuals who have made exceptional contributions and demonstrated unwavering dedication to advancing the field of construction defect law.
Named in honor of the late Judge Jerrold S. Oliver, a revered founder of alternative dispute resolution in construction defect claims and litigation, the Ollie award symbolizes loyalty, commitment, and trust within the industry. Judge Oliver's legacy as a staunch believer in the resolution process continues to inspire professionals who strive for excellence in the construction defect community.
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Wood Smith Henning Berman
Massachusetts Settlement Targets Mortgage-Backed “Homeowner Benefit” Agreements
April 08, 2026 —
A.J. S. Dhaliwal, Mehul N. Madia & Maxwell Earp-Thomas - SheppardOn March 11, Massachusetts Attorney General Andrea Joy Campbell announced a consent order with a real estate-related lender’s subsidiary, and affiliated individuals resolving allegations that the company violated the Massachusetts Consumer Protection Act by deceptively marketing mortgage-backed “Homeowner Benefit Agreements” to financially struggling homeowners.
According to the complaint, the company offered homeowners relatively small upfront cash payments, typically less than $1,500, in exchange for a 40-year exclusive right to act as the listing broker if the homeowner later sold the property. The Attorney General alleged that the agreements also triggered substantial payment obligations upon other transfers, including death or foreclosure, and that the transactions were secured by recorded mortgages that could interfere with refinancing, home-equity access, or the ability to sell the home. The complaint further alleged that the company marketed the product to vulnerable consumers searching for loans or public benefits while obscuring the true nature of the transaction.
Reprinted courtesy of
A.J. S. Dhaliwal, Sheppard,
Mehul N. Madia, Sheppard and
Maxwell Earp-Thomas, Sheppard
Mr. Dhaliwal may be contacted at adhaliwal@sheppard.com
Mr. Madia may be contacted at mmadia@sheppard.com
Mr. Earp-Thomas may be contacted at mearp-thomas@sheppard.com
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New Law Prompts ABC Minnesota/North Dakota to Design New Telecommunications Safety Training Program
June 29, 2026 —
Grace Calengor - Construction ExecutiveOn the first day of the year, a
Minnesota law requiring installers of underground telecommunication infrastructure broadband, fiber or phone lines (when projects utilize directional drilling, and/or work is being conducted within 10 feet of existing utilities) to undergo a 40-hour certification went into effect.
Originally passed in mid-2024 and proposed to go into effect in July 2025, the law’s requirements were postponed until January 2026, giving
ABC Minnesota/North Dakota—in partnership with
NCCER and the
Minnesota Cable Communications Association—time to roll out their
Safety Qualified Underground Telecommunications Installer training program, which would ensure the workforce of their contractor members were certified.
Reprinted courtesy of
Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Contract Disputes Act and Jurisdictional Requirements
March 17, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen dealing with a claim on a federal construction project, there are a couple of key background jurisdictional points. These points were briefly highlighted in the recent appeal, Mega Star Logistics Service Co. v. Department of State, CBCA 8232, 2026 WL 253738 (CBCA 2026). Here are the two points.
FIRST, when it comes to jurisdiction, for a board of contract appeals “to exercise jurisdiction over a claim, the CDA [Contract Disputes Act] requires the contractor to submit a written claim to the contracting officer for a COFD [contracting officer final decision], with a subsequent appeal of the COFD or deemed denial if the CO [contracting officer] does not issue a COFD.” Thus, you need to submit a formal claim under the Contract Disputes Act to the contracting officer to get a final decision from the contracting officer (or the contracting officer waiving the final decision by not timely furnishing one). Mega Star Logistics, supra.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Massachusetts Construction Industry Continues to Wait While Prompt Payment Law Is Put to the Test
March 31, 2026 —
Catherine Maronski - Construction Law ZoneEarlier this month, the Massachusetts Supreme Judicial Court (SJC) heard argument in J.C. Cannistraro, LLC v. Columbia Construction Co. et al., a dispute concerning the state’s Prompt Payment Act (PPA). Although a decision has yet to be issued, it could potentially pose widespread implications for high-value private construction projects moving forward – and perhaps backwards.
The PPA, G. L. c. 149, § 29E, enacted by the Massachusetts Legislature in 2010, has become a keystone in the construction industry. It was enacted to address, in part, downstream cash flow issues that tend to pervade construction projects by mandating a series of strict guidelines for submitting, and responding to, payment applications for private projects valued over $3,000,000. Amongst these requirements are set timeframes to respond to an application, as well as what must be contained in an application rejection. Critically, if an owner or upper-tier contractor fails to fully comply with all the statutory requirements in response to a proper payment application, the application is automatically “deemed to be approved” and payable. Significantly, however, this is not always the end of the line.
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Catherine Maronski, Robinson ColeMs. Maronski may be contacted at
cmaronski@rc.com
Louisiana Enacts Important Tort Reform Legislation
May 12, 2026 —
Lee M. Peacocke & Benjamin Perkins - Lewis BrisboisThe Louisiana legislature enacted tort reform legislation in 2025 to address the increasing cost of insurance in Louisiana and to provide some predictability to the Louisiana legal system. While our colleagues, Jenny Michel and Jennifer Kretschmann, have provided an excellent and comprehensive analysis of the legislation in their article entitled “Louisiana State Legislature 2025 Regular Session: Tort Reform - Acts & Vetoed Insurance Bill,” which can be found
here, this article examines the anticipated impact of the tort reform legislation on personal injury trials in federal and state courts in Louisiana.
The most significant reform involves the institution of a modified defense of contributory negligence, which went into effect on January 1, 2026. Since 1996, Louisiana had operated as a pure comparative fault state; the liability of each party whose fault caused damages was to be allocated among the respective parties based upon their appropriate percentage of fault, regardless of the legal theory of liability asserted against each party. Thus, a plaintiff 55 percent at fault could recover 45 percent of their damages from the liable defendants. The 2025 Tort Reform Amendments now prohibit a plaintiff in a personal injury action from recovering any damages if they are found to be 51 percent or more at fault for their damages. The 55 percent at-fault party in the example above is now prohibited from recovering any damages from any party. Importantly, this new legislation now requires the trial court to instruct the jury that if they find a plaintiff to be more than 50 percent at fault, then the plaintiff will not recover any damages.
Reprinted courtesy of
Lee M. Peacocke, Lewis Brisbois and
Benjamin Perkins, Lewis Brisbois
Mr. Peacocke may be contacted at Lee.Peacocke@lewisbrisbois.com
Mr. Perkins may be contacted at Benjamin.Perkins@lewisbrisbois.com
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