Beyond the Storm: How Non-Hurricane Catastrophes Expose Florida’s Construction Defect Blind Spot
August 11, 2026 —
Franchesco “Frank” Soto & Amanda L. Gonzalez - Ball JanikOn June 8, 2026, a magnitude 6.1 earthquake struck the Gulf near the coast of Cuba, the largest instrumentally recorded earthquake in the Gulf since seismic monitoring began in 1950. Buildings swayed, offices were evacuated, and many residents along the east coast of Florida, from Miami-Dade to Jacksonville, felt the ground shake. Although no tsunami followed and reported structural damage was limited, this event exposed a blind spot that Florida property owners, developers, and their counsel cannot afford to ignore: catastrophic stress on Florida buildings does not always come in the form of a named storm.
Florida property owners have grown accustomed to preparing for wind, storm surge, floods, and torrential rain. Far less attention is paid to earthquakes, sinkholes, tornadoes, hail, and non-tropical flooding, each of which can place unexpected stress on buildings not designed with those forces top of mind and can trigger deficiencies in buildings that were not otherwise known, expose design failures, and create an urgency for both insurance claims and subsequent litigation.
Non-Hurricane Triggers of Latent Defects
Seismic activity is the clearest example. Florida’s building code accounts for wind loads, not seismic forces, meaning even a moderate earthquake can reveal weaknesses in curtain wall systems, structural connections, or foundations that were already marginal. Sinkholes, driven by Florida’s karst limestone geology, remain a persistent threat, particularly in Central Florida, where subsurface voids can undermine foundations without warning. Non-tropical flooding, like the record rainfall that flooded South Florida in June 2024, can intrude through building envelopes and waterproofing systems that were never stress-tested for such volumes of water. Tornadoes and hail, while more localized, can cause roofing and envelope failures that mimic, mask, or trigger latent construction defects.
The Litigation and Coverage Disputes That Follow
When one of these events strikes a building already carrying undisclosed or unresolved construction defects, the resulting disputes become considerably more complex. Property owners and associations must move quickly to document existing conditions and distinguish damage caused by the event from pre-existing defective construction, the same causation issue that arises in the hurricane context under Chapter 558, but often without the benefit of established precedent or adjuster experience with these less common events.
Insurance coverage disputes frequently follow close behind. Carriers may dispute whether an earthquake, flood, or other peril is covered at all, particularly where policies contain earthquake or flood exclusions requiring separate endorsements, or anti-concurrent causation language that can bar coverage entirely when a covered peril combines with an uncovered one, such as pre-existing defective construction, to cause a loss. Sinkhole claims carry their own statutory framework under Florida law, requiring specific testing protocols and reporting before a claim is compensable. Developers and contractors, in turn, may find themselves defending Chapter 558 claims while simultaneously litigating with their own carriers over defense and indemnity obligations.
Practical Risk Mitigation Strategies
Property owners, associations, and developers can take several concrete steps to reduce their exposure. First, maintain thorough documentation, including engineering reports, maintenance logs, and photographs, well before any event occurs. This documentation is often the deciding factor in causation disputes. Second, engage structural engineers and consultants immediately following any seismic event, unusual flooding, or storm damage, regardless of whether a hurricane is involved. Prompt inspection preserves evidence and can help prevent inadvertent waiver of construction defect claims. Third, review insurance policies regularly with counsel or a broker to confirm earthquake, flood, and sinkhole coverage matches the property’s actual risk profile, rather than assuming a standard property policy responds to every peril. Fourth, avoid rushing to remediate before conditions are documented and/or before consulting counsel. Well-intentioned repairs can inadvertently compromise evidence needed to prove a defect claim.
The June earthquake was a reminder that Florida’s catastrophic risk profile extends beyond hurricane season. Property owners, associations, and developers who build readiness plans around all forms of catastrophic stress, not just named storms, will be far better positioned when the next unexpected event occurs.
Franchesco “Frank” Soto is a partner in
Ball Janik’s Construction Defect Practice Group in Miami. He may be reached at fsoto@balljanik.com.
Amanda L. Gonzalez is a litigation attorney in
Ball Janik’s Construction Defect Practice Group in Miami. She may be reached at agonzalez@balljanik.com.
Chambers USA Recognizes GRSM as 2026 Industry Leader
June 29, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani has once again been recognized by Chambers USA, a prestigious directory of the country’s top law firms. In addition to the firm’s practice recognitions, eight partners, David Capell, Nancy Erfle, Matthew Foy, Ashlee Grant, Craig Heryford, Andrew Port, Todd Regan, and Angela Richie, were recognized among the nation’s top lawyers in their respective fields.
Chambers USA recognized the firm in the following eight categories:
USA – Nationwide – Insurance: Dispute Resolution: Insurer, Band 4
The firm is widely sought after by national insurance sector clients facing a wide array of coverage disputes as well as bad faith claims. The firm has additional capabilities in class actions and appellate litigation. Its broad base of experience includes professional liability, construction, and bankruptcy-related issues. This is the third year the firm has received this recognition.
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Gordon Rees Scully Mansukhani
Massachusetts Settlement Targets Mortgage-Backed “Homeowner Benefit” Agreements
April 08, 2026 —
A.J. S. Dhaliwal, Mehul N. Madia & Maxwell Earp-Thomas - SheppardOn March 11, Massachusetts Attorney General Andrea Joy Campbell announced a consent order with a real estate-related lender’s subsidiary, and affiliated individuals resolving allegations that the company violated the Massachusetts Consumer Protection Act by deceptively marketing mortgage-backed “Homeowner Benefit Agreements” to financially struggling homeowners.
According to the complaint, the company offered homeowners relatively small upfront cash payments, typically less than $1,500, in exchange for a 40-year exclusive right to act as the listing broker if the homeowner later sold the property. The Attorney General alleged that the agreements also triggered substantial payment obligations upon other transfers, including death or foreclosure, and that the transactions were secured by recorded mortgages that could interfere with refinancing, home-equity access, or the ability to sell the home. The complaint further alleged that the company marketed the product to vulnerable consumers searching for loans or public benefits while obscuring the true nature of the transaction.
Reprinted courtesy of
A.J. S. Dhaliwal, Sheppard,
Mehul N. Madia, Sheppard and
Maxwell Earp-Thomas, Sheppard
Mr. Dhaliwal may be contacted at adhaliwal@sheppard.com
Mr. Madia may be contacted at mmadia@sheppard.com
Mr. Earp-Thomas may be contacted at mearp-thomas@sheppard.com
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Executive Insights 2026: Leaders in Construction Law
October 06, 2026 —
Construction ExecutiveWhat advice would you give contractors regarding documentation and recordkeeping to better protect themselves during disputes?
Jim Archibald
Partner
Bradley Arant Boult Cummings LLP
Disputes over payment, scope and delays are among the biggest risks contractors face. Thorough documentation doesn’t just help win these disputes; it may prevent them from happening at all.
Start with the contract: Every project should begin with a written agreement that clearly defines scope, schedule, payment terms and change-order procedures. Verbal understandings are difficult to enforce.
Track changes in real time: Change orders, change directives, RFIs and scope clarifications should always be documented in writing.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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New Report Outlines Roadmap for Construction Jobsites to Cut Carbon Emissions by 2040
April 20, 2026 —
PCL ConstructionDenver, Colo., April 16, 2026 (GLOBE NEWSWIRE) -- A new industry report outlines five practical steps that, when implemented together, could reduce construction jobsite emissions by up to 75% without compromising cost, schedule or performance. Grounded in real operational data from 617 construction projects across the U.S. and Canada, Growing and Greening Canadian Construction represents the most comprehensive sector-wide analysis of jobsite emissions conducted to date.
The report was developed through a collaboration among leading general contractors, including
PCL Construction, in partnership with the Transition Accelerator, an organization that drives projects, partnerships, and strategies to promote economic competitiveness in a carbon‑neutral world. The report focuses specifically on emissions from construction jobsite activities and reflects a shared commitment to advancing practical, scalable solutions for the industry.
About PCL Construction
PCL is a group of independent construction companies that operates throughout the United States, Canada, the Caribbean and Australia. As one of the largest contracting organizations in North America, PCL completes more than $9.9 billion USD in work annually, building projects that shape communities. The company’s 100% employee ownership model fuels a culture of commitment for clients in the buildings, civil infrastructure, heavy industrial and solar markets. With a strategic presence in more than 30 major centers, PCL’s leadership teams consistently drive innovation and set new benchmarks for excellence, bringing unparalleled skill to every project. Watch us build at PCL.com.
About the Transition Accelerator
The Transition Accelerator works with 300+ partner organizations across Canada to build out pathways to a prosperous low-carbon economy and avoid costly dead-ends along the way. We help governments and industry harness the global shift towards clean growth to secure permanent jobs, abundant energy, and strong regional economies across the country. By connecting systems-level thinking with real-world analysis, we’re enabling a more affordable, competitive, and resilient future.
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What Prevents Innovation in Construction from Taking Off
September 15, 2026 —
Aarni Heiskanen - AEC BusinessIn construction, we have the knowledge, technology, and innovative people to radically improve our performance, yet we’re still stuck in old ways. Why is that?
I attended an annual gathering for real estate and construction professionals at Rakennustieto Oy, Finland’s leading building information provider. The day before, a half-day seminar was held at the same venue. During both events, we discussed the need for change in the construction sector. Everyone agreed that we need to radically improve how we produce and share information.
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Aarni Heiskanen, AEC Business
Fourth Circuit Extends Coverage to Contractor
May 14, 2026 —
Hunton Insurance Recovery BlogThe Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured.
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Hunton Andrews Kurth LLP
Modern Building-Sundt $17M Claim Is Stranded by Hospital Bankruptcy
April 27, 2026 —
Richard Korman - Engineering News-RecordA $16.9-million claim for work on a hospital addition by a joint venture of contractors Modern Building Co. and Sundt Construction is stuck and delayed indefinitely following the California hospital's December bankruptcy filing.
Read the full story...Reprinted courtesy of
Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
