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.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Arizona Court of Appeals Clarifies Homeowners Association Open Meeting Requirements
June 29, 2026 —
Jill Casson Owen, Benjamin J. Hawkins & Stephen Wright - Snell & WilmerA Z N H Revocable Trust v. Sunland Springs Village Homeowners Association, No. 1 CA-CV 25-0424 (Ariz. Ct. App. Apr. 28, 2026)
OVERVIEW
The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804. The decision reinforces the legislative policy favoring transparency in association governance, bringing association meeting requirements more in line with the open meeting standards applicable to public bodies under A.R.S. § 38-431 et seq. (Arizona’s Open Meeting Law).
KEY HOLDINGS
1. All Voting and Formal Actions Must Occur in Open Meetings
The Court affirmed that association boards cannot vote or take formal action during closed (executive) sessions. Under A.R.S. § 33-1804(A), associations may close portions of meetings only for “consideration” of certain enumerated topics, such as legal advice, pending litigation, or personal/financial information about individual members. The Court interpreted “consideration” to mean discussion and deliberation, not voting. The Court noted that dictionaries define “consider” as “spending time thinking about a possibility” and “formulating an opinion,” which are processes that precede formal action. This interpretation mirrors how Arizona’s Open Meeting Law (A.R.S. § 38-431.03(D)) prohibits public bodies from voting in executive session.
Reprinted courtesy of
Jill Casson Owen, Snell & Wilmer,
Benjamin J. Hawkins, Snell & Wilmer and
Stephen Wright, Snell & Wilmer
Ms. Owen may be contacted at jowen@swlaw.com
Mr. Hawkins may be contacted at bhawkins@swlaw.com
Mr. Wright may be contacted at swright@swlaw.com
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CEO: Power Isn’t the Only Electrical Challenge for AI Data Centers
April 14, 2026 —
Francesco "Frio" Iorio - Engineering News-RecordEveryone knows that data centers are voracious consumers of electricity. In fact, the U.S. is currently scrambling to meet unprecedented levels of power demand not seen since
the early days of electrification and the widespread adoption of air conditioning.
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Francesco "Frio" Iorio, Engineering News-RecordENR may be contacted at
enr@enr.com
Benchmark Litigation Recognizes Andrea DeField Among Nation’s Top Young Litigators
September 08, 2026 —
Hunton Insurance Recovery BlogHunton’s insurance coverage team is proud to celebrate the recognition of
Andrea DeField on
Benchmark Litigation’s 2026 40 & Under List, an annual ranking that highlights the nation’s leading litigators age 40 and under. Andrea was one of only six Hunton lawyers selected and was recognized in the South region. Benchmark Litigation’s 40 & Under List honors attorneys who have distinguished themselves through significant case work, client feedback, and peer review.
This honor reflects Andrea’s reputation as one of the country’s leading policyholder-side insurance recovery litigators and her standing as a trusted advisor to companies facing some of today’s most complex insurance and risk management challenges. As head of Hunton’s cyber insurance practice, Andrea has built her career helping companies manage risk and maximize insurance recovery. Her practice spans the full spectrum of insurance-related issues, from advising clients on contractual risk transfer and insurance program design to representing policyholders in high-stakes coverage and bad faith disputes. She has guided clients through some of the most complex and widely publicized losses in recent years and helps companies recover under a broad range of insurance products, including D&O, professional liability, crime, property, cyber, and general liability policies.
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Hunton Andrews Kurth LLP
Understanding the EPA’s Latest Proposed Drinking Water Contaminant Monitoring Rule, Published in Law360
September 01, 2026 —
Gordon Rees Scully MansukhaniThe U.S. Environmental Protection Agency’s (EPA) proposed Sixth Unregulated Contaminant Monitoring Rule (UCMR 6) represents another step in the federal government’s ongoing effort to identify and evaluate emerging contaminants in drinking water. The proposal would require certain public water systems to monitor and report on 30 unregulated drinking water contaminants from 2028 through 2030, while generating occurrence data that could inform future regulation and affect environmental, commercial, litigation and risk assessments.
In an article published by Law360, Gordon Rees Scully Mansukhani Senior Counsel, Ayodeji Ayolola, analyzes the scope and practical implications of UCMR 6, including the contaminants selected, the proposed monitoring requirements for public water systems, and the EPA’s continued focus on PFAS and related organofluorine compounds. The article also touches upon the potential significance of publicly available monitoring data for businesses and property stakeholders.
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Gordon Rees Scully Mansukhani
Every High-Tech Building Has Many Lifespans
August 16, 2026 —
Aarni Heiskanen - AEC BusinessWhen I worked as an architect, our team designed a laboratory for fuel research. The facility included a large research hall where various boilers and other devices were tested and analyzed. The setup required extensive floor channeling under the thick concrete floor. We suggested building a modular system that would allow flexibility in the future, when requirements would certainly change. They did not want that because of budget constraints.
The high-tech construction trend is spreading. Data centers, semiconductor fabs, battery plants, and life science facilities share one property that sets them apart from ordinary buildings. The technology inside turns over faster than the structure around it. Server generations change every three to five years. Rack densities have risen from 10 or 20 kW to 130 kW and beyond in just a few years.
A high-tech facility is really several buildings with different lifespans inside one envelope, and we keep designing them as if they were one. The failure is not that things become obsolete. It is that we never say when each layer is expected to.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
A Green Light for Housing? What Executive Order 14394 Means for Your Next Project
May 26, 2026 —
Bennett Houck, Miranda Martinez & Byron Sarhangian - Snell & WilmerOn March 13, 2026, President Trump signed Executive Order 14394, “Removing Regulatory Barriers to Affordable Home Construction” (the “Order”). The Order directs federal agencies to reduce regulatory burdens on residential development, streamline environmental permitting, and encourage state and local governments to adopt housing-friendly policies.
The Order includes several key provisions that developers and homebuilders should be aware of moving forward.
Key Provisions
The Order targets four main areas:
1. Federal Environmental Regulations
First, it directs the Secretary of the Army and Environmental Protection Agency (EPA) to revise permitting standards, including stormwater permits, wetlands permits under Section 404 of the Clean Water Act, and related construction-site requirements. The Order also targets energy-efficiency mandates for U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) financed housing. For developers and homebuilders, these revisions could reduce project delays and compliance costs associated with stormwater management, wetlands mitigation, and energy-efficiency upgrades, expenses that often add significant time and cost to residential development projects.
Reprinted courtesy of
Bennett Houck, Snell & Wilmer,
Miranda Martinez, Snell & Wilmer and
Byron Sarhangian, Snell & Wilmer
Mr. Houck may be contacted at bhouck@swlaw.com
Ms. Martinez may be contacted at mimartinez@swlaw.com
Mr. Sarhangian may be contacted at bsarhangian@swlaw.com
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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.
