North Star Michigan Construction Expert Witness Directory

The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues

August 03, 2026 — William L. Porter - Porter Law Group
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction. Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions

May 12, 2026 — David Adelstein - Florida Construction Legal Updates
Contract drafting and interpretation matters. A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case here where the appellate court reversed based on the prefatory language. But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:

Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.

Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Buffalo, NY Stadium Work Resumes After Suspects ID'ed in $150K Graffiti Vandalism

March 17, 2026 — Emell D. Adolphus - Engineering News-Record
Construction work is back on track at Highmark Stadium in Orchard Park, N.Y., after police identifed, but did not arrest two suspects in connection with $150,000 in property damage that paused work for nearly one week at the $2.1 billion stadium project, said the Gilbane Building Cos. and Turner Construction joint venture building it for the National Football League’s Buffalo Bills. Read the full story...
Reprinted courtesy of Emell D. Adolphus, Engineering News-Record
Mr. Adolphus may be contacted at adolphuse@enr.com

Consider The Limited Warranty from Your Homebuilder

July 06, 2026 — David Adelstein - Florida Construction Legal Updates
When purchasing a home from a homebuilder, there is an important consideration when it comes to the limited warranty you receive around the time you close on the home. That limited warranty likely includes an arbitration provision requiring you to arbitrate your disputes, such as construction defect claims, against the homebuilder. That arbitration provision will most likely include all claims, including statutory claims (such as a statutory violation of a building code claim), requiring you to arbitrate, as opposed to litigate, your disputes against the homebuilder. This is an important consideration. If the arbitration provision does not allow you to arbitrate all of your claims, and eliminates your rights to legitimate statutory claims, the arbitration provision could be unenforceable. By way of example, in a residential construction defect dispute, Anderson v. Taylor Morrison of Florida, Inc., 223 So.3d 1088 (Fla. 2d DCA 2017), the appeal turned on whether the arbitration provision in the homebuilder’s limited warranty was valid. The homeowners took possession of their home in 2009. In 2015, the homeowners served a Florida Statutes Chapter 558 notice of construction defects that included a statutory violation of a building code claim under Florida Statute §553.84. The limited warranty included an arbitration provision that specified it was the “exclusive remedy” for all disputes arising out of or related to the warranty or issues with the home and property. When read together with the warranty’s disclaimer that precluded claims not covered by the warranty “whether in contract, tort, or otherwise,” the statutory building code violation claim could not be remedied through arbitration because it fell outside the warranty’s coverage. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

California Enacts Change Order Fair Payment Act

March 24, 2026 — Michael J. Baker - Snell & Wilmer
For private works construction contracts entered on or after January 1, 2026, recent legislation establishes a claims and dispute resolution process for change orders. The law is codified at Civil Code § 8850. A synopsis of the pertinent provisions includes the following:

Submitting a Claim. Contractors or subcontractors must submit a detailed, documented claim when requesting additional time or payment.
Owner’s Response Time. The owner must meet and confer within thirty (30) days after receiving the claim. Within ten (10) days of meeting, the owner must provide a written statement identifying which portions of the claim are undisputed and which are disputed. An owner’s failure to respond is treated as disputing the entire claim.

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Reprinted courtesy of Michael J. Baker, Snell & Wilmer
Mr. Baker may be contacted at mjbaker@swlaw.com

Suit Limitation Provision Eliminates Wind Loss Claim

July 27, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The insurer’s motion for judgment on the pleadings was granted after the insured failed to file suit against the insurer within the policy’s two-year suit limitation provision. Interstate Investments, LLC v. Mt. Hawley Ins Co., 2026 U.S. Dist. LEXIS 98108 (S.D. N. Y. May 4, 2026). On or before June 27, 2023, a wind, hail and rainstorm damaged Interstate’s property in Oklahoma. Interstate filed a claim under its policy with Mt. Hawley. The policy provided that New York law applied and contained a two- year suit limitation provision. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Spain’s Sagrada Familia: Contemporary Construction Methods Speed Iconic Basilica to Completion

March 24, 2026 — Pam McFarland - Engineering News-Record
In 2014, the entity behind construction of one of the world’s most iconic churches—the wildly imaginative Sagrada Familia basilica in Barcelona, Spain—contacted global consultant Arup with a challenge: Could the firm help the project team update designs developed more than a century earlier, to ensure that a critical project component was built to be structurally sound? Read the full story...
Reprinted courtesy of Pam McFarland, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com

Motion for Summary Judgment Granted in Significant California Public Utilities Suit

May 12, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Congratulations to Partner Mike D’Andrea and Associates Ruth Rasiah and Kaylah Abdullah in the Los Angeles office for obtaining a complete dismissal of their clients in a significant claim involving California’s Public Utilities regulations. After lengthy litigation, BWB&O’s Motion for Summary Judgment was granted against Claimant, Spectrum (Charter Communications), which resulted in a complete dismissal of the action against BWB&O’s clients. At issue was whether California’s Public Utilities Code shifted the common law duty to maintain certain utility equipment in residential areas within Southern California. After significant briefing, the Superior Court found that BWB&O correctly argued that the Public Utilities Code required utility companies, like Spectrum, to fully maintain utility equipment, and that private residents are not responsible for utility maintenance (even if the physical equipment is located on private property). Read the full story...
Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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