Insured General Contractor Prevails on Motion for Summary Judgment to Establish Builder’s Risk Coverage
July 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe general contractor’s motion for partial summary judgment successfully established that damage to footings in place before the policy period was covered after the collapse of a building. Big D Builders, Inc. v. Am Zurich Ins. Co., 2026 U.S. Dist. LEXIS 72012 (D. Idaho March 31, 2026).
Big D was the general contractor for building a new airplane hangar by erecting a 38,000 square foot structure. Before Big D began construction, the site of the hangar did not contain any pre-existing structures or buildings. Before completion of the hangar, it collapsed and caused extensive property damage.
The builder’s risk policy issued by Zurich covered certain aspects of the construction project for the policy period December 28, 2023, to December 28, 2024. Zurich accepted coverage for most of the damage but not for damage to footings and columns installed prior to the start date of the policy.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Court Rules Cook County Misspent $243M in Transportation Funds
March 10, 2026 —
Annemarie Mannion - Engineering News-RecordA Cook County Illinois Circuit Court judge has ruled that the county violated the state constitution by using $243 million in transportation tax revenue during fiscal 2023 for non-transportation purposes, handing a legal win to a statewide coalition of construction trade groups.
Read the full story...Reprinted courtesy of
Annemarie Mannion, Engineering News-RecordMs. Mannion may be contacted at
manniona@enr.com
Seventh Circuit, With an Assist From the Illinois Supreme Court, Finds That “Pollution Exclusion” Bars Coverage For Emissions Allowed Under Regulatory Permit
April 20, 2026 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Griffith Foods Int’l Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 24-1217 & 24-1223 (7th Cir. Mar. 13, 2026), the Seventh Circuit addressed the meaning and scope of a pollution exclusion in a standard-form commercial general liability insurance policy for underlying injuries caused by ethylene oxide (EtO) emissions. The insurance dispute arose out of underlying tort litigation involving bodily injury claims, including cancer, allegedly caused by emissions of ethylene oxide over a 35-year period from 1984 through 2019 by Griffith Foods International and later Sterigenics U.S. The pollution exclusion at issue generally barred coverage for “bodily injury” arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, or other irritants, contaminants or pollutants.
Interpreting similar exclusions, the Illinois Supreme Court has previously held that the standard CGL pollution exclusion bars coverage for bodily injuries caused by traditional environmental pollution (essentially industrial emissions of pollutants), but not by more commonplace emissions (such as carbon monoxide from a residential furnace or excess chlorine in a backyard swimming pool). See American States Insurance Co. v. Koloms, 177 Ill. 2d 473 (Ill. 1997). In Griffith Foods, the District Court initially concluded that the pollution exclusion did not apply because the companies emitted EtO pursuant to a permit issued by the IEPA. The District Court reached this latter conclusion by applying Erie Insurance Exchange v. Imperial Marble Corp., 957 N.E.2d 1214 (Ill. App. Ct. 2011), an Illinois intermediate appellate court decision finding it ambiguous whether a CGL policy’s pollution exclusion barred coverage for emissions authorized by regulatory permit.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Nevada’s Mandatory Nonbinding Arbitration Law for Civil Cases is Going Through Changes
May 14, 2026 —
Brandon Wright & Manuel Gurule - Lewis BrisboisNevada currently operates an expedited litigation program designed to resolve civil disputes with a value up to $50,000 without incurring the “usual” expense of litigating these disputes. Over time, however, the number of civil cases that have been “exempted” from this program based on the claimed damages exceeding $50,000 has grown dramatically. In response, the Nevada Legislature recently enacted a number of rule changes designed to streamline Nevada’s arbitration process and include more cases. Among these changes are increasing the arbitration “cap” from $50,000 to $100,000.
By way of background, the Nevada’s Court Annexed Arbitration program is a mandatory, non-binding program for civil cases in judicial districts that have county populations of 100,000 or more [1]. Nevada’s Court Annexed Arbitration was born out of NRS 38.250, which was enacted in 1991 and went into effect in the summer of 1992. The newly enacted NRS 38.250 was regarded as a way to address the problem of increased court caseloads while promoting judicial economy and efficiency in civil cases having a probable jury award of less than $25,000 [2]. Initially, cases that were automatically exempt from the program included class actions, medical malpractice disputes, divorce proceedings, and other domestic relations matters [3].
Reprinted courtesy of
Brandon Wright, Lewis Brisbois and
Manuel Gurule, Lewis Brisbois
Mr. Wright may be contacted at Brandon.Wright@lewisbrisbois.com
Mr. Gurule may be contacted at Manuel.Gurule@lewisbrisbois.com
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Labor Shortages in Construction: Managing Legal and Operational Risks
April 14, 2026 —
Meghan Douris - Construction ExecutiveLabor shortages in the construction industry have become more than a scheduling headache—they are a legal and financial risk multiplier. As contractors scramble to meet deadlines with limited manpower, shortcuts in compliance, safety and subcontractor oversight become more likely. These gaps can expose companies to regulatory penalties, contractual disputes and reputational damage. Understanding how workforce constraints intersect with labor laws and contractual obligations is critical to mitigating the risks and navigating these challenges without compromising compliance or project integrity.
The construction industry has faced persistent workforce challenges for years, but recent trends have intensified the problem. Factors such as an aging workforce, reduced immigration and post-pandemic recovery pressures have left contractors struggling to find skilled labor. According to
Associated Builders and Contractors, the construction workforce shortage surpassed half a million workers in 2024; in the same year,
Associated General Contractors reported 88% of construction companies had difficulty finding qualified workers.
Reprinted courtesy of
Meghan Douris, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Identifying Unfair Clauses in Construction Contracts
February 17, 2026 —
Curtis W. Martin - Peckar & Abramson, P.C.In 1979, virtually all projects were completed under form contracts. As I started practicing construction law, it seemed that most form contracts were generally fair. They were negotiated by industry groups and over the next 10-20 years they appeared to become fairer. We could and did compare provisions in the AIA documents, the Federal contract forms, and the EJCDC agreements. When we did, we found subtle differences, but broad similarities in their approach to contract risk allocation.
Today many (most?) private projects are done with “manuscript” contracts – instruments tailored to the owner’s interests. And many public entities have developed their own contracts. And not all those clauses seem so fair.
This month I focus on contract clauses that I consider unfair. And while unfairness, like beauty, may be in the eye of the beholder, I think that the clauses described below aptly fit that descriptor.
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Curtis W. Martin, Peckar & Abramson, P.C.Mr. Martin may be contacted at
cmartin@pecklaw.com
Reminder: FOLLOW Your Well Drafted Contract Provisions
February 17, 2026 —
Christopher G. Hill - Construction Law MusingsI have early and very often stated that your
contract is the basis for everything relating to your construction project. Everything from “
no damages for delay” clauses to
attorney fees to
indemnity are found in those documents. A well drafted construction contract
sets the expectations for the project clearly and, aside from just making it easier on everyone for a successful project, will ease things
should there be any dispute later.
However, all of the great drafting and pre-construction negotiation in the world won’t do you a bit of good if you don’t follow those provisions. I can’t count the number of times that a contractor or subcontractor has read and even understood the construction documents but then put the contract in the drawer and didn’t look at it again. Your experienced construction attorney, while helpful at the drafting and negotiation stages and beyond, cannot help do the work. Your lawyer can help you negotiate and
highlight the notice provisions of the contract but cannot provide that notice to the Owner or General Contractor when you have a claim. In short, the best contract in the world is
only as good as those that are following it.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
White House Explores Opening Antitrust Probe on Homebuilders
February 10, 2026 —
Patrick Clark & Leah Nylen - BloombergTrump administration officials are exploring opening an antitrust investigation into US homebuilders as the White House sharpens its focus on tackling the country’s housing affordability crisis.
The Department of Justice could open the probe in the coming weeks, according to people familiar with the discussions. No decision has been made and the administration may abandon the effort without launching an investigation, the people said, asking not to be identified discussing non-public information.
Reprinted courtesy of
Patrick Clark, Bloomberg and
Leah Nylen, Bloomberg Read the full story...