Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
From CERCLA to Drinking Water: D.C. Circuit’s PFAS Ruling Enters a Second Regulatory Fight
October 06, 2026 —
Ashleigh K. Myers, Amanda G. Halter & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law BlogOn August 18, 2026, a unanimous panel of the U.S. Court of Appeals for the D.C. Circuit
upheld EPA’s designation of perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund). In Chamber of Commerce of the United States v. EPA, the court rejected challenges to EPA’s interpretation of CERCLA Section 102(a), the adequacy of its notice and comment process, its analysis of costs and benefits, and its decision to proceed despite uncertainty about future response actions and costs.
This decision is already being invoked in a separate D.C. Circuit challenge to EPA’s 2024 PFAS drinking water rule promulgated under the Safe Drinking Water Act (SDWA). Six days after the CERCLA decision, respondent intervenors cited it as supplemental authority in American Water Works Association v. EPA, No. 24-1188, ahead of oral argument scheduled for
September 18, 2026. The Chamber of Commerce decision may assist the respondent intervenors on certain notice and comment and economic analysis arguments, but its significance should not be overstated. The principal challenges to the standards for the four PFAS subject to EPA’s Hazard Index-based maximum contaminant level (MCL) turn on requirements specific to the SDWA, and EPA itself now agrees that those provisions were promulgated through an unlawful process.
Reprinted courtesy of
Ashleigh K. Myers, Pillsbury,
Amanda G. Halter, Pillsbury and
Jillian Marullo, Pillsbury
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
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Best Lawyers Honors Hundreds of Lewis Brisbois Attorneys, Names Five Partners 'Lawyers of the Year'
September 08, 2026 —
Lewis BrisboisBest Lawyers has selected 207 Lewis Brisbois attorneys across 45 offices for its 33rd edition of The Best Lawyers in America. It has also recognized five Lewis Brisbois partners on its "Lawyers of the Year" list: Akron Partner John R. Conley (Product Liability Litigation - Defendants); Akron Managing Partner David Kern (Corporate Law; Mergers and Acquisitions Law; Private Funds / Hedge Funds Law; Tax Law; Trusts and Estates); Weirton Managing Partner Michelle L. Gorman (Mass Tort Litigation / Class Actions - Defendants); Portland Partner Megan Cook (Personal Injury Litigation - Defendants); and San Diego Partner Craig T. Mann (Medical Malpractice Law - Defendants).
Please join us in congratulating the following attorneys on their Best Lawyers recognition! You can also see the full list of attorneys named to Best Lawyers' Ones to Watch in America
here.
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Lewis Brisbois
From Dark Data to Building Intelligence
July 13, 2026 —
Aarni Heiskanen - AEC BusinessIn this episode, I talk with Mark Sorsa-Leslie, founder and CEO of
Auttaa AI, whose team just won first place in Luotea’s inaugural hackathon in Helsinki for turning property maintenance from reactive firefighting into proactive forecasting with AI. Mark is a chartered surveyor with 30 years of real estate data experience, previously the founder of the UK sensor company Beringar.
We discuss why so much building data stays dark and siloed, from outdated networking technology to the shortage of people who understand both engineering and property. Mark explains how Auttaa bridges real-time building data with large language models, using what he calls an “influence graph” to surface correlations and causation across previously disconnected systems, such as linking occupancy patterns to CO2 readings to diagnose ventilation problems in minutes rather than days.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Italian Court Convicts 32 in Morandi Bridge Collapse Case
August 25, 2026 —
Bryan Gottlieb - Engineering News-RecordFormer Autostrade per l'Italia CEO Giovanni Castellucci was sentenced to 12 years in prison July 16 after an Italian court handed down the first criminal verdicts stemming from the 2018 Morandi Bridge collapse in Genoa that killed 43 people.
Read the full story...Reprinted courtesy of
Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
Federal Bid Protest Standard of Review and Disparate Treatment with Ratings
August 16, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent decision out of the Federal Claims Court explains the post-award bid protest standard of review.
In Massman Construction Co. v. U.S., 2026 WL 1971985 (Fed.Cl. 2026), a protestor brought a post-award bid protest after the Army Corps of Engineers awarded the contract to another contractor. The protestor argued that the Army Corps (government) acted irrational in its evaluation through disparate treatment. The Court of Federal Claims agreed and remanded for the Army Corps to “either justify this disparity or explain why [awardee’s] lower-priced, but technically inferior proposal provides the best value to the government.” Massman Construction, supra at *1.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination
June 08, 2026 —
Paul Williamson - ConsensusDocsVolumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[
1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[
2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[
3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[
4]
As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor.
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Paul Williamson, Peckar & Abramson, P.C.Mr. Williamson may be contacted at
pwilliamson@pecklaw.com
11 Payne & Fears Attorneys Honored by Best Lawyers
August 24, 2026 —
Payne & FearsCongratulations to the 11 Payne & Fears attorneys included in the 2027 Edition of “Lawyer of the Year” and The Best Lawyers In America®. Attorneys have been recognized in the following practice areas:
“Lawyer of the Year” (2027 Edition)
Orange County
The Best Lawyers in America® (2027 Edition)
Irvine, CA
- Jeffrey K. Brown
- Employment Law – Management
- Labor Law – Management
- Litigation – Labor and Employment
- Daniel F. Fears
- Employment Law – Management
- Labor Law – Management
- Litigation – Labor and Employment
- Daniel M. Livingston
- Commercial Litigation
- Litigation – Real Estate
Read the full story...Reprinted courtesy of
Payne & Fears
