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.
Supreme Court Rules Tariffs Unconstitutional: Why the Construction Industry Shouldn’t Expect Calm Just Yet
March 31, 2026 —
Christopher Barnett - Construction ExecutiveThe U.S. Supreme Court’s 6–3 decision in Learning Resources, Inc. v. Trump did what many expected: It held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. What few anticipated was the speed of what followed: Within hours of the ruling, the administration announced replacement tariffs under Section 122 of the Trade Act of 1974, imposed a 10% global surcharge effective February 24, and signaled forthcoming Section 301 investigations against most major trading partners.
For those in the construction industry hoping the Learning Resources ruling would restore market stability, the message was unambiguous. The constitutional question may be settled, but the market disruption is not.
Reprinted courtesy of
Christopher Barnett, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
SDNY Ruling Highlights Privilege Risks in Client Use of Generative AI
March 03, 2026 —
Christopher J. Olsen, Freddy X. Muñoz & Gary M. Stein - Peckar & Abramson, P.C.Artificial intelligence is quickly becoming a go‑to tool for aggregating and summarizing large volumes of data, formulating and testing arguments, and even sketching litigation strategies. But a recent ruling from the Southern District of New York serves as a stark warning: when clients turn to generative AI for legal strategy, they may be unknowingly turning privileged information over to a third party and then creating documents that may later be discoverable in litigation. In a closely watched bench decision, Judge Rakoff ruled that AI‑generated documents created by the target of a criminal investigation using Anthropic’s Claude were not privileged despite being generated with information learned from his attorneys to support his potential legal defense and then shared with his counsel. The decision highlights the unresolved and increasingly consequential intersection of AI, privilege, and discovery.
Facts
Bradley Heppner received a grand jury subpoena and hired attorneys at Quinn Emanuel to represent him. After learning he was a target of the investigation, but before he was arrested, he created 31 documents with Claude using information from his attorneys to outline a potential defense strategy. He was later arrested on charges of securities and wire fraud, and federal agents seized his electronic devices, which contained the 31 documents that had been provided to his attorneys. Mr. Heppner argued that the documents were created to prepare his potential defense strategy in anticipation of an indictment, but he conceded that he made the decision to prepare the reports on his own, i.e., not at the direction of counsel. He nevertheless claimed the documents were protected from disclosure by the attorney-client privilege and work product doctrine; the government moved to overrule the objections.
Reprinted courtesy of
Christopher J. Olsen, Peckar & Abramson, P.C.,
Freddy X. Muñoz, Peckar & Abramson, P.C. and
Gary M. Stein, Peckar & Abramson, P.C.
Mr. Olsen may be contacted at colsen@pecklaw.com
Mr. Muñoz may be contacted at fmunoz@pecklaw.com
Mr. Stein may be contacted at gstein@pecklaw.com
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CA Civil Code § 8850: What Private Multi-state Owners and Developers Building in California in 2026 Need to Know
January 26, 2026 —
Anand Gupta - Construction Law Zone BlogOwners and developers building in California must be aware of a new statute, CA Civil Code § 8850, which takes effect for contracts entered into, on, and after January 1, 2026. The statute will likely apply to most private construction projects; however, a carve-out exists for residential projects that are not mixed use and are four stories or less.
When a contractor—or, with proper authorization, a subcontractor—submits a claim related to payment, time extensions, damages, or change orders (encompassing the majority of construction disputes), the owner must provide a written response within 30 days. This response must clearly state which portions of the claim are disputed and which are not. The owner has 60 days from the date of its response to issue payment for those undisputed amounts. Late payments will accrue interest at a rate of two percent per month.
Read the full story...Reprinted courtesy of
Anand Gupta, Robinson & ColeMr. Gupta may be contacted at
agupta@rc.com
Ball Janik LLP Elevates Construction Litigation Attorneys Keegan A. Berry and Nicholas B. Vargo to Partner
February 02, 2026 —
Ball Janik LLPOrlando, FL – January 28, 2026 –
Ball Janik LLP is pleased to announce the elevation of
Keegan A. Berry and
Nicholas B. Vargo to Partner, effective 2026. Both attorneys are dedicated to their clients and have provided significant contributions to the firm's Construction Defect and Litigation practice.
"Keegan and Nicholas exemplify the excellence and client-focused approach that define Ball Janik LLP," said James C. Prichard, Managing Partner of Ball Janik LLP. "Their elevation to Partner reflects not only their exceptional legal skills and dedication to our clients but also their commitment to advancing the firm's mission. We are proud to recognize their achievements and look forward to their continued leadership."
Berry is based in Ball Janik LLP's Orlando office and is a Florida Bar Board Certified Specialist in Construction Law. Throughout his career, Berry has focused on complex litigation and resolving matters through arbitration, alternative dispute resolution, and trial, with extensive experience both prosecuting and defending construction claims on behalf of owners, contractors, and manufacturers. His practice also encompasses complex commercial and general litigation, including business torts, professional liability, products liability, and general liability.
"I'm honored to continue serving Florida's business and property owner communities as a partner at Ball Janik, leveraging my experience to deliver efficient, results-driven solutions in even the most complex construction disputes," said Berry.
Vargo is based in Ball Janik LLP's Tampa office and is a Florida Bar Board Certified Specialist in Construction Law. He focuses on Construction Litigation, representing residential and commercial property owners in construction defect litigation. Vargo has spent most of his career in construction defect law with Ball Janik and has been instrumental in growing Ball Janik's presence in Florida's west coast.
"Becoming a partner at Ball Janik is both a privilege and a responsibility, and I look forward to continuing to advocate fiercely for our clients while holding accountable those who attempt to evade their obligations," said Vargo.
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/.
Managing Tariff Volatility in Cross‑Border U.S. Construction Projects: Practical Contract‑Drafting and Procurement Strategies
March 10, 2026 —
Sara Beiro Farabow & Michael Wagner - The Construction SeytVolatile U.S. tariff announcements continue to affect international supply chains for U.S. construction projects. Although recent litigation has centered on the scope of presidential tariff authority rather than construction‑specific disputes, these decisions carry important implications for how parties structure risk in their contracts. In May 2025, the U.S. Court of International Trade (CIT) struck down certain “Liberation Day” tariffs as exceeding presidential authority under IEEPA. A federal district court in Washington, D.C. likewise issued a preliminary injunction suspending related tariffs—though it later stayed its own order pending appeal. And the Supreme Court has agreed to review cases addressing the legal limits of IEEPA‑based tariffs.
While none of these developments arises from construction disputes, the themes they highlight—timing, statutory authority, and documentation—mirror the issues encountered when tariff conditions disrupt international procurement. The following strategies reflect practical steps U.S. project owners, contractors, and foreign suppliers can take to mitigate risk, drawing on drafting approaches now widely used across major construction forms, including—but not limited to—modified AIA agreements.
Reprinted courtesy of
Sara Beiro Farabow, Seyfarth Shaw LLP and
Michael Wagner, Seyfarth Shaw LLP
Ms. Farabow may be contacted at sfarabow@seyfarth.com
Mr. Wagner may be contacted at mewagner@seyfarth.com
Read the full story...
Time to Negotiate Limitation on Remedies and Damages Is on the Front End
February 10, 2026 —
David Adelstein - Florida Construction Legal UpdatesRemember, when it comes to contracts, the time to negotiate and enter into mutually agreed upon bargains is on the front end. And, if the contract is not negotiable, at least you know that and can make the business decision whether you want to accept the bargains and risks. If you don’t, well, you can walk away. Move onto another deal. If you do, then you make the business decision as to the bargains or risk transfers and accept them moving forward. One of those bargains and risks deals with a limitation on damages and remedies.
In a recent dispute dealing with the sale of an aircraft, there was a provision dealing with the buyer and seller’s remedies in the event of a breach. (Similar to a real estate transaction or other buyer-seller scenario.) “Contract section 10.4(a) stated that if the buyer defaulted, the seller’s “exclusive remedies” were to keep the aircraft and the buyer’s deposit. Section 10.4(b) stated that if the seller defaulted by “fail[ing] to deliver the [aircraft] in accordance with the terms of [the contract],” the buyer’s “sole remedies” were the seller’s reimbursement of the buyer’s inspection costs.” Sky Aviation Holdings, LLC v. Aviation Unlimited, 50 Fla.L.Weekly D2658c (Fla. 4th DCA 2025). As you can see, there was a limitation on the seller’s damages.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Celebrating BWB&O’s 2026 Super Lawyers Rising Stars in San Diego!
March 31, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners
Jocelyn Russo,
Christina Matian, and Associate
Angelo Perillo have been named to the Super Lawyers 2026 San Diego Rising Stars list. This recognition highlights their outstanding dedication and distinguished service in Family Law, Civil Litigation, and Personal Injury Litigation.
SUPER LAWYERS
Jocelyn Russo: 2023-2026
Christina Matian: 2024-2026
Angelo Perillo: 2024-2026
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O’Meara, LLP
