Actual Controversy Without Actual Exhaustion: California Supreme Court Allows Declaratory Relief and Bad Faith Claims Against Excess Insurers
August 24, 2026 —
Kyle A. Rudolph - Saxe Doernberger & Vita, P.C.California courts were previously split on the issue of whether an insured may bring declaratory relief claims against excess insurers prior to the exhaustion of underlying insurance. Some California courts held that the actual exhaustion of underlying insurance was necessary, whereas other courts allowed for these types of claims to proceed.[
1]
Recently, the California Supreme Court addressed this split of authority and, in doing so, handed down a significant win for policyholders. In Fox Paine & Company, LLC, et al. v. Twin City Fire Insurance Company et al., the Court held that insureds may proceed with bringing forth viable declaratory relief and bad faith claims against excess insurers prior to the exhaustion of underlying insurance.[
2] A summary of the Court’s opinion is provided below.
Read the full story...Reprinted courtesy of
Kyle A. Rudolph, Saxe Doernberger & Vita, P.C.Mr. Rudolph may be contacted at
KRudolph@sdvlaw.com
Could Your Project-Level AI Prompt Become the Other Side’s Smoking Gun?
October 20, 2026 —
Ryan Glass - ConsensusDocsA dispute is brewing on the project. Wanting a quick assessment, the project manager opens ChatGPT, Claude, or another generative artificial intelligence (“AI”) platform. The project manager types the dispute background into the prompt, including concerns, explanations, and a frank discussion of what may have gone wrong on the contractor-side. The AI response identifies potential weaknesses in the contractor’s position, including possible failures to meet contractual obligations. Unhappy with the answer, the project manager starts a new chat, revises the prompt, and tries again. If the dispute escalates to arbitration or litigation, can the owner force the contractor to provide these prompts and the resulting responses?
Frustratingly, the answer is: it depends. Courts have reached different conclusions. For now, the safest course is to involve your counsel before using AI to evaluate a demand letter, default notice, or threatened lawsuit, or before using AI to draft dispute-related emails, claim letters, or other communications that contain project-specific facts. Otherwise, what feels like a private conversation may later become key evidence for the opposing party.
Read the full story...Reprinted courtesy of
Ryan Glass, Jones Walker LLCMr. Glass may be contacted at
rglass@joneswalker.com
Construction Companies Are Nearly Seven Times Safer With These Best Practices
June 15, 2026 —
ABC - Construction ExecutiveWASHINGTON, May 4—Associated Builders and Contractors released its
2026 Health and Safety Performance Report, an annual guide to health and safety best practices on construction jobsites. The 2026 report shows the positive effects of participating in
ABC’s STEP® Health and Safety Management System, which enables top-performing ABC members to achieve incident rates 686% safer than the U.S. Bureau of Labor Statistics construction industry average, reducing total recordable incident rates by 85%.
Established in 1989, STEP is a proven system that provides contractors and suppliers with a
robust, no-cost framework for measuring health and safety data and benchmarking with peers in the industry. This self-assessment tool helps participants identify real opportunities for scalable growth in their health and safety programs to lower their total recordable incident rates and become an employer of choice in a competitive labor market.
Reprinted courtesy of
ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Traub Lieberman Partner Ryan Parker and Associates Robert Biferie and Matthew Groteke Win Final Summary Judgment on Behalf of Homeowner’s Insurance Company
November 02, 2026 —
Ryan S. Parker, Robert Biferie & Matthew Groteke - Traub LiebermanTraub Lieberman Partner Ryan Parker and Associates Robert Biferie and Matthew Groteke won final summary judgment on behalf of their client, a homeowner’s insurance company. The case related to a claim for damage caused by Hurricane Milton, which was reported more than ten months after the date of loss. The homeowner’s insurance company reviewed historical aerial photography of the roof and determined that there was no evidence of damage immediately after the Hurricane, which was inconsistent with the condition of the roof when it was inspected more than ten months later. Additionally, the homeowner’s insurance company was unable to determine when the interior water damage occurred due to the delay in reporting the claim. After a lawsuit was filed, the Traub Lieberman team took depositions of the Plaintiffs and the opposing expert and eventually filed a Motion for Summary Judgment based on the failure to timely report the claim and resulting prejudice to their client. The Court granted the Motion for Summary Judgment finding that notice of the claim was untimely as a matter of law and that the Plaintiffs failed to rebut the legal presumption of prejudice to the insurance company. As a result of the ruling, the insurance company has a valid claim for attorney’s fees.
Reprinted courtesy of
Ryan S. Parker, Traub Lieberman,
Robert Biferie, Traub Lieberman and
Matthew Groteke, Traub Lieberman
Mr. Parker may be contacted at rparker@tlsslaw.com
Mr. Biferie may be contacted at rbiferie@tlsslaw.com
Mr. Groteke may be contacted at mgroteke@tlsslaw.com
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Pay-If-Paid: What You Need to Know Before Signing on the Dotted Line
August 03, 2026 —
Christian Fernandez & Matthew Racioppo - Snell & WilmerBuried deep in the fine print of a subcontract, a pay-if-paid clause may be looming. If you are a subcontractor or supplier, misreading these clauses can put your cash flow at risk. If you are an owner or general contractor, drafting them incorrectly can leave you with obligations you never intended — or unenforceable protections you were counting on.
It is more important than ever to understand when pay-if-paid clauses hold up and when they do not, as well as recent litigation and drafting trends. Whether you are negotiating a new agreement, reviewing your standard form contracts, or staring down a payment dispute, understanding how Arizona law treats pay-if-paid clauses is essential. In this article, we break down key considerations, walk through the legal standards Arizona courts apply, and offer practical tips to consider to help you protect your payment rights on the next project.
Reprinted courtesy of
Christian Fernandez, Snell & Wilmer and
Matthew Racioppo, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com
Mr. Racioppo may be contacted at mracioppo@swlaw.com
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LA Scores Major Victory in a High-Exposure Premises Liability Action
July 06, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPOur firm is proud to announce a decisive defense victory obtained by Partner
Daniel Crespo and Associate
Lauren Landau for our client in a high-exposure premises liability action arising from a 2022 incident at an active school construction site in Perris, California. On March 10, 2026, the Riverside County Superior Court granted Summary Judgment in full for our client, dismissing all claims brought by Plaintiff, who alleged she tripped and fell over a curb while picking up her daughter from school and sustained ankle and wrist injuries as a result.
Through meticulous preparation and the strategic use of construction plans, contractual documents, and onsite surveillance video evidence, our team demonstrated that our client had no ownership, possession, or control over the portion of the existing sidewalk where the incident occurred, with construction plans unambiguously designating the area as pre-existing concrete outside our client’s scope of work, and the Construction Services Agreement expressly reserving control over all existing site improvements to the school district.
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
Nationwide Preliminary Injunction Ordering Department of Defense to Resume Review of Wind Energy Projects
September 21, 2026 —
Victor J. Roehm III, Christopher P. Colyer & Sara M. Ajeti - Snell & WilmerOn August 6, 2026, the U.S. District Court for the District of Oregon granted a preliminary injunction in Renewable Northwest v. Hegseth, Case No. 3:26-cv-01092-IM, ordering the Department of Defense (DoD) to resume processing wind energy project applications under the existing statutory and regulatory framework and staying DoD’s review freeze pending final adjudication on the merits.
Background
In 2011, Congress created the Military Aviation and Installation Assurance Siting Clearinghouse (Clearinghouse) within DoD to review wind energy projects that might affect military operations. When a wind project developer files an application with the Federal Aviation Administration (FAA), the FAA refers it to DoD to determine whether the project poses an “unacceptable risk to the national security.”
Reprinted courtesy of
Victor J. Roehm III, Snell & Wilmer,
Christopher P. Colyer, Snell & Wilmer and
Sara M. Ajeti, Snell & Wilmer
Mr. Roehm may be contacted at vroehm@swlaw.com
Mr. Colyer may be contacted at ccolyer@swlaw.com
Ms. Ajeti may be contacted at sajeti@swlaw.com
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Turning Expert Services into Products
July 20, 2026 —
Aarni Heiskanen - AEC BusinessA Finnish engineering, architecture, and project consulting company, AINS Group, recently opened an online store to purchase fixed-price services. The store presents specialist work in a product-like format, with fixed service names, defined scopes, and visible prices, such as a building history report, a zoning plan cost analysis, and a technical preliminary survey for a property transaction.
Is this productization a smart move or a sign that expert services are being commoditized?
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
