Bad Faith Claim Survives Summary Judgment
June 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer’s motion for partial summary judgment on the insured’s bad faith claim, but granted the motion on the insured’s claim for punitive damages. Serbian Orthodox Church v. Brotherhood Mut. Ins. Co., 2026 U.S. Dist. LEXIS 58234 (S.D. Cal. March 19, 2026).
On February 1, 2023, the Church filed a claim for water damage with Brotherhood Mutual Insurance Company (BMIC). The claim was based on rain and wind that caused extensive water intrusion into the Sanctuary, damaging its plaster walls and ceilings and fresco paintings. The claim was assigned to Patrick Hurley. Hurley sent a letter discussing potential bars to coverage and requesting further information and documents from the Church.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Research Illuminates Pollution Problem in Tijuana River Valley
June 29, 2026 —
Jeff Yoders - Engineering News-RecordThe Tijuana River watershed between southern California and northern Mexico has been the epicenter of an environmental and public health crisis for more than two decades. Since October 2023 alone, more than 31 billion gallons of raw sewage and polluted water have flowed into the U.S. and, eventually, the Pacific Ocean.
Read the full story...Reprinted courtesy of
Jeff Yoders, Engineering News-RecordMr. Yoders may be contacted at
yodersj@enr.com
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.
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.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
Hidden Risks Behind Today’s Stadium Construction Boom
July 20, 2026 —
Thomas Strong, Andrew Canning & Marc Gnesin - Construction ExecutiveAfter a decade-plus lull, professional sports leagues, universities and municipalities are once again spending heavily on new
stadiums and major renovations. In the NFL alone, multiple marquee projects are underway or planned, representing more than $10 billion in facilities and mixed-use entertainment districts, rivaling or exceeding the scale of development during the last stadium-build cycle of the early 2000s.
Beneath the excitement of architectural ambition and civic pride lies a risk landscape that has fundamentally changed since the last wave of stadium construction. Teams, cities and contractors that rely on outdated assumptions may find themselves exposed to cost overruns, schedule delays and liabilities that are far more difficult to unwind once construction is underway.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
4th Department Narrowly Interprets Professional Services
August 11, 2026 —
Craig Rokuson - Traub LiebermanIn the recent case of Cty. of Erie v. Selective Ins. Co. of Am., 2026 NY Slip Op 04092 (App. Div. 4th Dept.), New York’s Appellate Division, Fourth Department held that a general liability carrier for a construction manager owed additional insured coverage to the County of Erie, notwithstanding an exclusion in the construction manager’s policy for injuries arising out of professional services.
The underlying case involved injuries sustained when the underlying plaintiff fell off of her bicycle at a park owned by the County when she transitioned from the pavement edge to grass.
Read the full story...Reprinted courtesy of
Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
U.S. Supreme Court Decision Alters Course of $745M Louisiana Coastal Damage Judgment
June 15, 2026 —
Jennifer Kretschmann & Jennifer E. Michel - Lewis BrisboisThe U.S. Supreme Court has issued a unanimous decision allowing oil and gas companies to move Louisiana coastal erosion lawsuits from state court to federal court under the federal officer removal statute. While the ruling is procedural, it carries significant implications for environmental- and energy-related risks. The case,
Chevron U.S.A. Inc. v. Plaquemines Parish, Louisiana, Slip Op. 24-813 (April 17, 2026), addressed a threshold jurisdictional question but has broader significance for environmental and climate related litigation. State courts are often viewed as more favorable forums for plaintiffs asserting environmental damage claims, particularly those brought by governmental entities.
The opinion issued on April 17, 2026 is the latest development in long-running Louisiana coastal litigation that began more than a decade ago. Starting in 2013, Louisiana parishes filed 42 lawsuits against oil and gas companies alleging environmental damage related to historic oil field operations. The parishes alleged that oil and gas companies violated state coastal management laws by failing to properly restore impacted areas. Chevron sought to remove the cases from state court under 28 U.S.C. § 1442(a)(1), known as federal officer removal, which provides federal jurisdiction over “any person acting under [an] officer” of the United States "for or relating to any act under color of such office." The Fifth Circuit rejected the argument and remanded the case, and others like it, to state court. Trial began in March 2025 in Point à la Hache, Louisiana. On April 4, 2025, the jury awarded a total of $745 million to compensate for land loss, contamination and abandoned equipment. On June 16, 2025, the U.S. Supreme Court agreed to review the question of whether a federal contractor can remove to federal court when sued for oil-production activities undertaken to fulfill a federal oil-refinement contract.
Reprinted courtesy of
Jennifer Kretschmann, Lewis Brisbois and
Jennifer E. Michel, Lewis Brisbois
Ms. Kretschmann may be contacted at Jennifer.Kretschmann@lewisbrisbois.com
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com
Read the full story...
My Current Love-Hate Relationship with AI
June 08, 2026 —
Garret D. Murai - California Construction Law BlogIt’s early in the relationship, I know. But still, there are some things that bug me. Yet, I also know that it’s a relationship in which leaving is not an option, and even if I could, it’s not to the point where it’s so bad that I would do so. So, if you would, let me gripe a bit.
While there’s been much discussion about AI and, at least in my neck of the woods, a fair amount of discussion about how lawyers can, should, and must use AI or risk becoming discarded into the dustbin of history, much less has been written about clients’ use of AI.
Increasingly, I’ve gotten the sense that my clients are using AI. For example, I had a client ask for confirmation that if he disagreed with an administrative decision that he could file a writ of mandate, and if so, whether that deadline was 30, 60 or 90 days after the administrative decision. The answer to the first question was yes, and as to the second question, the answer was 90 days. This was from a client who, smart as he is, probably didn’t know this off the top of his head.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
