Texas Court Revives Construction Defect Claims: Key Lessons for Managing Latent Defect Risk
January 21, 2026 —
Spencer E. Dunn & Melissa Osio Martinez - Wood Smith Henning BermanConstruction projects often involve intricate designs, multiple stakeholders, and complex performance obligations. When problems surface years after completion, parties must navigate a difficult landscape that blends contract law, tort doctrines, and statutory deadlines. A recent decision from the Fourth Court of Appeals of Texas provides meaningful guidance on how courts will evaluate latent construction defect claims, the applicability of the discovery rule, and the limits of the economic loss doctrine. In Morningside Ministries v. Koontz McCombs Construction, Ltd., the court reversed summary judgment entered in favor of the general contractor and project manager, reviving the owner's claims and offering important lessons for owners, contractors, and insurers facing construction defect disputes.
Background of the Dispute
Morningside Ministries operates senior living communities across Texas. In 2012, It contracted with Koontz McCombs Construction, Ltd. (Koontz) to construct The Overlook, a significant expansion of Morningside's Menger Springs campus in Boerne. The contract required Koontz to build 100 new senior living units along with common areas and site improvements, and placed responsibility for construction quality, including the work of subcontractors, on Koontz.
Reprinted courtesy of
Spencer E. Dunn, Wood Smith Henning Berman and
Melissa Osio Martinez, Wood Smith Henning Berman
Mr. Dunn may be contacted at sdunn@wshblaw.com
Ms. Martinez may be contacted at mosiomartinez@wshblaw.com
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Promptly Notifying Your Insurer of a Claim Matters
December 30, 2025 —
David Adelstein - Florida Construction Legal UpdatesDoes promptly notifying your insurer of a claim matter? A recent case out of the 11th Circuit Court of Appeals answers this question in the affirmative. MAKE SURE TO PROMPTLY NOTIFY YOUR INSURER OF A POTENTIAL CLAIM.
In L. Squared Industries, Inc. v. Nautilus Ins. Co., 31 Fla.L.Weekly C529a (11th Cir. 2025), an insured owned gas stations and had a claims-made storage tank liability insurance policy. The policy provided: “You must see to it that we are notified as soon as reasonably possible, but in any event, not more than seven (7) days after the insured first became aware of, or should have become aware of a pollution condition which may result in a claim or any action or proceeding to impose an obligation on the insured for cleanup costs . . . .”
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Meet BWB&O’s Super Lawyers Rising Stars in Colorado!
April 08, 2026 —
Dolores Montoya - Bremer Whyte Brown & O’Meara, LLPBremer Whyte Brown & O’Meara, LLP is thrilled to share that Partner
Devin Brunson and Associate
Melissa Youngpeter have been named to the Super Lawyers 2026 Colorado Rising Stars list. This recognition reflects their exceptional work in Personal Injury and Civil Litigation.
SUPER LAWYERS RISING STARS
Devin Brunson: 2024-2026
Melissa Youngpeter: 2026
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Bremer Whyte Brown & O’Meara, LLP
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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Ninth Circuit Holds That Policies Covering Environmental Claims Do Not Have Aggregate Limits
May 12, 2026 —
Lorelie S. Masters & Joseph T. Niczky - Hunton Insurance Recovery BlogIn the case of
County of San Bernardino v. Insurance Company of the State of Pennsylvania, the Ninth Circuit recently addressed the issue of whether general liability policies issued in the 1960s and 1970s included aggregate limits for claims arising under the premises-operations coverage in CGL policies. The difference between the policyholder’s interpretation of the policies’ limits clauses and the insurer’s interpretation was worth hundreds of millions of dollars in exposure for the insurer. The Court closely examined the policy language and extrinsic evidence from both the insurance industry’s drafting history and the parties before concluding that the policies were ambiguous. The Court construed that ambiguity in favor of the policyholder and ruled that aggregate limits did not apply to the claims at issue. The Court’s decision underscores the importance of carefully examining a policy’s limits, especially for older policies written before 1986 when the insurance industry revised the standard-form CGL policy to state the aggregate limits apply not only to products liability claims but to premises-operations claims as well. Decades of insurance industry drafting history confirms, as the policyholder’s submissions in this case indicate, that the industry well understood that operations claims like the environmental waste-disposal claims at issue here typically were not subject to aggregate limits.
Reprinted courtesy of
Lorelie S. Masters, Hunton Andrews Kurth LLP and
Joseph T. Niczky, Hunton Andrews Kurth LLP
Ms. Masters may be contacted at lmasters@hunton.com
Mr. Niczky may be contacted at jniczky@hunton.com
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Ownership and Licensing in Design Agreements
April 14, 2026 —
Abby Dvorkin - Snell & WilmerThe ownership and licensing of design documents in professional services agreements play a significant role in protecting the interests of the design professional and the project owner during and after project completion. The ownership or licensing of the drawings provision typically outlines who owns the drawings and specifications, who can use the documents, and how the documents can be used during and after the project.
Project owners and developers should understand that payment for design services does not automatically transfer ownership or an exclusive right to use the professional design. Under U.S. copyright law, the default rule is that the design professional retains ownership of the instruments of service absent a contractual provision transferring ownership or a license. See 17 U.S.C. § 101, et seq. The Architectural Works Copyright Protection Act provides that copyright protection applies to “pictorial, graphic and sculptural works” and includes “architectural works.” 17 U.S.C. § 102. A design professional may only transfer copyright ownership in writing. 17 U.S.C. § 204(a).
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Abby Dvorkin, Snell & WilmerMs. Dvorkin may be contacted at
advorkin@swlaw.com
Insurer’s Late Notice Argument Fails Due to Lack of Prejudice
December 30, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe court refused to dismiss the insured’s claim for hail damage based on late notice because the insurer failed to demonstrate it had suffered prejudice. Borene UMC v. Church Mut. Ins. Co., 2025 U.S. Dist. LEXIS 210767 (W.D. Texas Oct. 27, 2025).
Boerne UMC owned multiple buildings that were allegedly damaged during a hailstorm that occurred in May 2021. In August 2022, Boerne hired a contractor to inspect the roofs. The contractor found damage to several roofs and HVAC units and prepared an estimate for repair of over $700,000. Boerne submitted a claim to its insurer, Church Mutual on November 17, 2022.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
“Number nine, Number nine…”: Newark Trial Team Obtains “No Cause” Verdict in Ninth Trial of Year
December 15, 2025 —
Lewis Brisbois NewsroomNewark, N.J. (October 21, 2025) - Starting their ninth trial of the year – eight juries, one bench – the trial team of Newark Partner Afsha Noran and Managing Partner Colin P. Hackett recently obtained a “No Cause” verdict for a national owner, developer, builder, and operator of real estate.
While the trial was relatively short, totaling four days and eight witnesses, the “No Cause” verdict was nonetheless gratifying for the client and the New Jersey trial team. As in any slip/trip/fall action, the plaintiff alleged the firm client failed to properly maintain their retail space, which led to the plaintiff slipping, falling and fracturing a femoral condyle bone. This resulted in the plaintiff undergoing surgery and being wheelchair bound for over three months, as well as needing home modifications consisting of an exterior home ramp and commode. The plaintiff’s expert opined that the plaintiff was, is, and will continue to be in pain for the rest of her life, and will require pain management treatment and a future knee replacement.
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Lewis Brisbois