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
“The Superintendent Told Us to Do It:” Why Verbal Approval May Not Be Enough
June 02, 2026 —
Andrew Lintner - Colorado Construction Litigation BlogIn construction defect litigation, one scenario appears repeatedly: a subcontractor installs work in a manner that differs from the plans, specifications, manufacturer instructions, or industry standards after being verbally directed to do so by the general contractor, superintendent, architect, or owner’s representative.
At the time, the decision may seem minor. The project is moving quickly, the field team wants to maintain progress, and nobody wants to stop working over what appears to be a small issue. The subcontractor may trust the superintendent or project manager and assume the conversation will be remembered later if questions arise.
Years later, however, when the project experiences problems, the people involved may deny the conversation occurred, remember it differently, or simply no longer remember the project. Without written documentation, the subcontractor can find itself defending claims for defective work, even though it performed the installation exactly as directed.
Read the full story...Reprinted courtesy of
Andrew Lintner, Higgins, Hopkins, McLain & Roswell, LLCMr. Lintner may be contacted at
alintner@hhmrlaw.com
Snell & Wilmer’s Orange County Office Recognized as One of the “Best Places to Work” by the Orange County Business Journal
August 16, 2026 —
Snell & WilmerORANGE COUNTY – Snell & Wilmer is pleased to announce that its Orange County office has been selected as one of the 2026 “Best Places to Work in Orange County” by the Orange County Business Journal. This recognition honors outstanding employers that foster exceptional workplace cultures and demonstrate a strong commitment to employee engagement, professional development, and organizational excellence.
The annual awards recognize Orange County employers that create positive workplace environments and set the standard for employee satisfaction and organizational success. Honorees are selected through a comprehensive evaluation process that includes confidential employee surveys and an independent assessment of company policies, practices, philosophy, systems, and demographics.
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Snell & Wilmer
Fraud Allegations Stymie Additional Insured’s Request for a Defense
May 14, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Federal District Court granted the insurer’s motion to dismiss the insured’s complaint seeking a defense of the underlying case alleging fraud. Renovation Realty, Inc. v. Colony Ins. Co., 2026 U.S. Dist. LEXIS 21409 (S.D. Cal. Jan. 30, 2026).
Mara Fortin sued Renovation Realty and others (“Fortin litigation”) from the fraudulent sale of a residence. The underlying complaint alleged Renovation “deliberately misrepresented of the residence as ‘completely remodeled’ and ‘meticulously maintained’.” The defendants, however, including Renovation, “knew from sources including a pre-renovation termite report documenting fungus and dry rot . . . that the Property harbored pre-existing material defects.”
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
EPA Steps Back, Arizona Moves Forward
May 12, 2026 —
Patrick J. Paul, John Habib & Sukhmani K. Singh - Snell & WilmerIn a significant development for Arizona’s business community and environmental policymakers, the U.S. Environmental Protection Agency (EPA) has paused its planned reclassification of Maricopa County from “Moderate” to “Serious” ozone nonattainment status pursuant to the Clean Air Act’s National Ambient Air Quality Standards (NAAQS).
This decision marks a shift in federal air policy — one that recognizes the unique challenges faced by regions like metro Phoenix, where environmental conditions beyond local control are often key contributors to air quality readings.
The EPA’s move follows a series of meetings between EPA Administrator Lee Zeldin, Arizona elected officials, and business and civic leaders, including a recent roundtable in Phoenix convened by U.S. Senator Mark Kelly. In announcing the pause, Zeldin acknowledged the need for flexibility and fairness in the application of Clean Air Act standards, especially when emissions from other states, nations, and natural events significantly influence local air quality.
Reprinted courtesy of
Patrick J. Paul, Snell & Wilmer,
John Habib, Snell & Wilmer and
Sukhmani K. Singh, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com
Mr. Habib may be contacted at jhabib@swlaw.com
Ms. Singh may be contacted at ssingh@swlaw.com
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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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New Florida Law Adds Licensing Risk to Contractor/Subcontractor Payment Disputes
September 29, 2026 —
Brett J. Moritz & Ali Heyat - Peckar & Abramson, P.C.Effective July 1, 2026, Florida’s newly enacted Section 489.1295 of the Florida Statutes, titled “Prohibition Against Nonpayment,” requires licensed contractors to timely compensate subcontractors and suppliers for labor, services, or materials. Enacted as part of Senate Bill 290 (Ch. 2026-3, Laws of Fla.), the statute adds a new basis for instituting disciplinary proceedings against a contractor’s license if a payment is knowingly or willfully withheld.
While this is not a sweeping overhaul of Florida construction payment laws by any means, contractors should be aware that nonpayment disputes with subcontractors and suppliers may carry potential licensing consequences.
Reprinted courtesy of
Brett J. Moritz, Peckar & Abramson, P.C. and
Ali Heyat, Peckar & Abramson, P.C.
Mr. Moritz may be contacted at bmoritz@pecklaw.com
Mr. Heyat may be contacted at aheyat@pecklaw.com
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