The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues
August 03, 2026 —
William L. Porter - Porter Law GroupIt 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.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Don’t Forget to Include Termination Language in Your Contract
November 02, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent case explains why termination language or a basis to withhold contract sums is important in your contract. Don’t neglect this language or the negotiation that goes into having this language.
In a recent dispute, GSD Contracting, LLC v. All American Builders & Debris Removal, Inc., 2026 WL 3068422 (Fla. 4th CA 2026), a subcontract included language that said that 10% retainage would be paid 90 days after final completion of the project. The subcontract did NOT include termination for cause language; it only included termination for convenience language. Towards the end of the project, mold was discovered warranting mold remediation. The subcontractor refused to perform until the mold was remediated. The general contractor claimed it was remediated but the subcontractor argued the remediation was insufficient because the contractor did not engage an industrial hygienist. After the subcontractor refused to complete its work, the general contractor terminated the subcontractor for cause. The subcontractor then sued the general contractor for its 10% retainage claiming the general contractor breached the subcontract. The trial court, as affirmed by the appellate court, agreed. The appellate court found that the contract required the general contractor to pay the subcontractor’s retainage 90 days after final completion and the project had long been completed. “Significantly, the subcontract does not contain a termination for cause provision or any pertinent provision permitting [the general contractor] to withhold or retain [the subcontractor’s] retainage following a termination…Nothing in the subcontract provides that [the general contractor] may thereafter withhold the retainage based on an alleged default by [the subcontractor].” GSD Contracting, supra, at *2.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Additional Insureds Obligated to Meet Self-Insured Retention
October 20, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found that the additional insureds had to meet the policy’s self-insured retention before a duty to defend was triggered. Amerisure Ins. Co. v. Premier Design & Build Group, LLC, 2026 U.S. Dist. LEXXIS 170741 (N.D. Ill. July 31, 2026).
Amerisure issued CGL and umbrella policies to Premier Design & Build Group, LLC. Amerisure had the right and duty to defend in certain suits for property damage under both policies.
Premier contracted with MG East, LLC (MGE) to build three buildings. After the buildings were constructed, MG filed suit against Premier in state court, seeking recovery for allegedly defective installation of the roof, flashing, and gutters on each of the buildings. Premier had subcontracted with Tecta American Sough Florida, Inc. to install the flashing.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Brenda Radmacher Authors Chapter in ABA Publication on Construction Delays
May 26, 2026 —
Brenda Radmacher - The Construction SeytBrenda Radmacher, a partner in Seyfarth’s Construction Law practice and a mediator and arbitrator serving on the American Arbitration Association’s panels, is among the contributing authors to the American Bar Association’s forthcoming guide on construction disputes: Time – The Legal Implications of Project Delay in Construction.
Drawing on three decades of experience, Radmacher authors Chapter 8, Contractor Delay Damages, offering practical insight into one of the most contested issues in construction litigation and arbitration.
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Brenda Radmacher, Seyfarth Shaw LLP
Wadsworth v. Regional Rail Partners — Verified Statements of Claim Under the Colorado Public Works Act
August 25, 2026 —
Olivia Barden - Colorado Construction Litigation BlogEditor’s Note: Wadsworth Revisited
In August 2024, following the Colorado Court of Appeals’ decision in Ralph L. Wadsworth Construction Company, LLC v. Regional Rail Partners, we published
Colorado Court of Appeals’ Ruling Highlights Dangers of Excessive Public Works Claims.
At the time, the decision warranted a significant warning to contractors and subcontractors performing public work in Colorado. The Court of Appeals concluded that Wadsworth’s verified statement of claim improperly included unliquidated delay damages and that, because the claim was excessive, Wadsworth forfeited its right to recover the amounts included in the claim. We cautioned contractors to carefully scrutinize verified statements of claim and to avoid including unliquidated damages or amounts that were not yet due and payable.
The Colorado Supreme Court has now reversed that decision.
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Olivia Barden, Higgins, Hopkins, McLain & Roswell, LLC
Insurer Cannot Dispose of Water Leak or Bad Faith Claims on Motion for Summary Judgment
July 20, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for summary judgment seeking to eliminate the insured’s claims for damage from a water leak, bad faith and punitive damages failed. Nargizyan v, State Farm General Ins. Co., 2026 Cal App. LEXIS 302 (Cal. Ct. App. April 15, 2026).
The insured noticed tiles on his kitchen floor were warmer than usual. He found water dripping from the top of the crawl space under the house. He noticed water was “dripping in different places” but not pouring like a faucet. “There were too many places to count where water was dripping and there was water all over the place.”
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Best Lawyers in America® - Ball Janik Attorneys Earn Multiple Recognitions
September 01, 2026 —
Ball Janik LLPOrlando, FL, August 20, 2026 – Ball Janik LLP is pleased to announce that 24 of its attorneys have been recognized in the 2027 editions of The Best Lawyers in America® and Best Lawyers: Ones to Watch® in America. The 33rd Best Lawyers edition recognitions are based on peer review and highlight attorneys across a range of practice areas. This recognition underscores the broad experience Ball Janik's attorneys bring to the firm's construction defect practice.
"We're proud to be recognized by Best Lawyers again this year," said James C. Prichard, Managing Partner of Ball Janik LLP. "These honors reflect the expertise and depth of our team, our continued growth across Florida, and our commitment to providing strong counsel to clients in complex construction, insurance recovery, and litigation matters."
Ball Janik attorneys recognized in the 2027 edition of The Best Lawyers in America® include:
Keegan A. Berry — Construction Law
Brian T. Crevasse — Construction Law; Litigation - Construction
Todd Demetriades — Litigation - Construction
Joseph R. Fitos — Construction Law; Litigation - Construction
Megan A. Picataggio — Construction Law
Jon E. Lemole — Construction Law; Litigation - Construction
Salvatore G. Scro — Construction Law
Nicholas B. Vargo — Construction Law; Litigation - Construction
Kelly M. Corcoran — Construction Law
Gabriel Z. Coelho — Construction Law
Evan J. Small — Construction Law; Litigation - Construction
Franchesco Soto — Construction Law; Litigation - Construction
Phillip E. Joseph — Litigation - Construction; Real Estate Law
James C. Prichard — Construction Law
Ball Janik attorneys recognized in the 2027 edition of Best Lawyers: Ones to Watch® in America include:
Nicholas Passantino — Litigation - Construction
Amanda L. Gonzalez — Construction Law; Litigation - Construction
Morgan N. Lester — Litigation - Construction
Chris S. Tribbey — Construction Law
Kyle Bugden — Construction Law; Litigation - Construction
Brian Tannenbaum — Construction Law
Kayla Mosquera — Insurance Law
Natasha L. Biela — Commercial Litigation
Elijah C. Waring, Jr. — Product Liability Litigation - Defendants
Greg K. Demers — Construction Law
About Ball Janik LLP
Ball Janik LLP is a Florida-based law firm offering construction defect, construction law, insurance recovery, and commercial litigation counsel, to its local and national clients. The firm was founded in 1982 and has expanded its capabilities, professionals, and geographic footprint. What started as a small firm focused on real property, land use, and litigation (known then as Ball Janik & Novack) has grown to a team of 70-plus attorneys and paralegals in five offices in Florida, with centuries of combined experience and capabilities. The firm has been recognized by Chambers USA, including for its construction law capabilities in Florida, U.S. News & World Report and Best Lawyers®, The Best Lawyers in America©, Super Lawyers, and Corporate International. Read more at www.balljanik.com.
Ball Janik LLP Welcomes Construction Defect Attorney and U.S. Air Force Veteran Jake Scott to its Fort Lauderdale Office
June 02, 2026 —
Ball Janik LLPBall Janik LLP, a leading construction defect and insurance recovery law firm, has welcomed Jake Scott as an associate in its Fort Lauderdale office. Scott joins the Construction Defect Practice Group, bringing experience across construction litigation that includes construction defect, contract dispute, and negligence matters, along with a track record of representing construction professionals through depositions, court appearances, and trial preparation to support the firm's steady growth and client service statewide.
"We're excited to welcome Jake Scott to our Fort Lauderdale office and Construction Defect Practice Group," said James C. Prichard, Managing Partner at Ball Janik LLP. "We look forward to the fresh perspectives and legal solutions he will provide for community associations across South Florida."
Scott is a results-driven attorney dedicated to providing strategic counsel for complex legal challenges. He has experience managing all phases of a case, from early investigation and discovery through trial preparation and settlement negotiations.
Prior to joining Ball Janik, Scott served as an associate attorney in Fort Lauderdale, where he represented clients in construction litigation matters, handled depositions and court appearances, conducted legal research, and drafted pleadings, motions, and briefs. He also worked as an attorney in Tampa, where he represented contractors, subcontractors, and construction firms in defending claims involving construction defects, contractual disputes, and negligence, and worked closely with expert witnesses, engineers, and consultants to develop and present technical evidence.
Scott's experience representing the development and building sides of construction disputes provides a valuable, contrast-driven perspective that supports the strategic evaluation of claims and practical approaches to resolution for Ball Janik's clients.
A proud veteran, Scott served in the United States Air Force for eight years, including roles as an Airspace Control Officer and in Space Systems Operations, supporting safe space flight operations and satellite communications.
Carrying the discipline of airborne operations, Scott worked in the aerospace sector as a Satellite Engineer and Orbital Analyst. He also held a role in the housing sector, supporting marketing and business development initiatives.
Scott received his law degree from Stetson University College of Law. He attended American Military University, where he earned degrees in marketing, business management, and related support services.
About Ball Janik LLP
Ball Janik LLP is a Florida-based law firm offering construction defect, construction law, insurance recovery, and commercial litigation counsel to its local and national clients. The firm was founded in 1982 and has expanded its capabilities, professionals, and geographic footprint. What started as a small firm focused on real property, land use, and litigation (known then as Ball Janik & Novack) has grown to a team of 50-plus attorneys and paralegals in 5 offices in Florida, with centuries of combined experience and capabilities. The firm has been recognized by Chambers USA, U.S. News & World Report and Best Lawyers®, The Best Lawyers in America©, and Corporate International. Read more here: https://www.balljanik.com.
