No Bad Faith Despite Insurer’s Appraisal Award Exceeding Initial Payment
August 03, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insurer’s motion for summary judgment, finding no bad faith despite the appraisal award exceeding the amount the insurer initially paid. Jazi Kat 4659 Rockridge LLC, et al. v. Travelers Cas. Ins. Co. of Am., et al., 2026 U.S. Dist. LEXIS 105634 (D. Ariz. May 13, 2026).
Plaintiffs sued Travelers for breach of contract and bad faith, alleging that Travelers failed to pay money plaintiffs were owed under the policy. Plaintiffs held a commercial property policy for two properties. A fire destroyed one of the properties. Travelers adjusted the claim and issued two payments. Plaintiffs disagreed with the amount of the payments and demanded an appraisal. Travelers agreed to the appraisal.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Celebrating Freedom: The Overlooked Freedom to Contract in Commercial Insurance
July 20, 2026 —
Michael S. Levine & Andrea DeField - Hunton Insurance Recovery BlogHappy 4th and 250 years of freedom . . . to contract!
Many policyholders assume insurance policies are “standard” and must be accepted as-is. That assumption is often wrong—and dangerously limiting. Unlike many consumer insurance markets, the commercial insurance realm preserves a robust “freedom to contract,” allowing sophisticated policyholders to negotiate terms, exclusions, definitions, and limits before a policy is even issued. Particularly in recent years, high-profile disputes over cyber coverage, business interruption, and war/cyber exclusions have shown not just what happens when coverage is denied, but what could have been done up front to avoid those fights.
This post highlights the power policyholders still hold in the negotiation process and illustrates, with concrete examples from recent media-covered disputes, how that freedom can be strategically used.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth LLP and
Andrea DeField, Hunton Andrews Kurth LLP
Mr. Levine may be contacted at mlevine@hunton.com
Ms. DeField may be contacted at adefield@hunton.com
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Congratulations to Reno Partner Karen Baytosh for Securing a Complete Dismissal via a Motion for Summary Judgment
July 13, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBWB&O is proud to announce that Reno Partner Karen Baytosh received a significant victory on behalf of the firm’s Developer Client in a high-exposure personal injury matter.
Plaintiff, a teenager, was struck by an intoxicated driver while walking her dog at night, sustaining catastrophic injuries requiring 24-hour critical care for the remainder of her life. Plaintiff’s Guardian brought suit against the drunk driver and her husband, the City, and BWB&O’s Developer Clients, alleging that the City and Developers failed to improve street lighting and install a sidewalk that would have prevented the accident.
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
NJ Public Works Contractors Beware – Pay Special Attention When Submitting Your Public Works Contractor Registration
May 26, 2026 —
Levi W. Barrett & Aaron C. Schlesinger - Peckar & Abramson, P.C.While it is always important to be careful when making submissions to government agencies, recent activity by the New Jersey Department of Labor and Workforce Development (“NJDOL”) reveals considerably increased scrutiny in connection with contractors renewing their New Jersey Public Works Registration. Extra care when completing the registration renewal process is warranted, because the consequences of a misstep can be significant and disruptive.
The New Jersey Public Works Contractor Registration Act requires all contractors bidding on or engaging in construction-related public works projects to register with the NJDOL. This registration, which must be resubmitted every 1-2 years, requires contractors to make a number of detailed disclosures relating to, among other things, the entity’s ownership structure, prior state and federal labor law violations, details regarding interests in other businesses, unlawful acts by owners/officers, and participation in apprenticeship programs.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C. and
Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
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Key Person Provisions in Construction Contracts: Because People, Not Companies, Build Projects
October 27, 2026 —
Nate Simon - Construction ExecutiveIn construction, the person running your job matters: the project manager who sat in your preconstruction meetings, who understands the phasing, who knows why the MEP coordination sequence was set up the way it was, who has relationships with your team and the owner’s team. That person is not interchangeable. And if they disappear six weeks into the job and get replaced by someone who’s never read the drawings, you have a problem.
This happens all the time. A contractor or consultant sells the A-team—the experienced project manager; the sharp superintendent; the people who won the job—during the proposal and interview. Then, once the contract is signed, those people quietly get moved to a larger project, not out of anything nefarious, but usually out of a necessity. A fire happens on another project and they are needed to put it out. By the time you realize those working on your project aren’t the ones you originally signed on, you’re three months in and the damage is already underway.
Reprinted courtesy of
Nate Simon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Mr. Simon may be contacted at
nate@simonlawky.com
Wisconsin Supreme Court Finds Coverage Under Ensuing Loss Provisions
September 29, 2026 —
Tred R. Eyerly - Insurance Law HawaiiReversing the trial court’s grant of summary judgment to the insurer, the Wisconsin Supreme Court determined that genuine issues of material fact existed on whether ensuing losses as defined in the policy were covered. Cincinnati Ins. Co. v. Ropicky, 2026 Wisc. LEXIS 302 (Wis. July 7, 2026).
The insured suffered damage during a storm on May 11, 2018, when rainwater poured into the home. The insureds gave notice to their insurer, Cincinnati. Upon inspection, Cincinnati determined that water intrusion resulted from multiple construction defects in the home. In the front of the home, water entered through a gap in the stone veneer. The inspector also concluded that the damage from rainwater was not just from the May 11, 2018, storm, but damage had occurred from prior storm events.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Preventing Common and Costly Water Intrusion Events in Construction
July 13, 2026 —
Andrew Swift - Construction ExecutiveWater leaking into a building is a leading cause of
damage and loss in the construction industry. On one jobsite, heavy rains flooded a sub-basement, damaging a new electrical transformer—all because a roof drain was not property connected. On another jobsite, a drinking-fountain supply line broke in a multistory building that was undergoing renovation, causing water to run—undetected—for an entire weekend, resulting in water damage to all lower floors, where construction had been finished.
Those loss scenarios could have been prevented with a comprehensive and effective water damage prevention plan (WDPP). This includes routine site inspections to identify uncontrolled water damage exposures and basic maintenance to make sure drains are clean of debris and divert them to a catch basin or low point away from the building. An effective WDPP plan also incorporates technology such as backflow preventers on sewer connections and water sensing technology to monitor the most vulnerable exposures.
Reprinted courtesy of
Andrew Swift, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
