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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No Ink, No Problem: When Employees and Agents Can Enforce Arbitration Agreements
August 11, 2026 —
Jordan Heath & Jacob Morrison - ConsensusDocsArbitration is a fundamental component of modern construction contracting. Many in the industry recognize the potential benefits and protections arbitration can provide to the business in the event of a dispute. But an important question many contracts do not address is: who does the arbitration agreement cover? Does it include the business entity only, or the individuals acting on behalf of the entity?
As courts have long recognized, entities can generally only act through their employees, representatives, or agents.[1] This article discusses the circumstances in which an agent may rely on an arbitration provision entered by its employer. This is known as the agency doctrine.
Reprinted courtesy of
Jordan Heath, Associate, Jones Walker LLP and Jacob Morrison, Law Student University of Georgia, Jones Walker LLP
Read the full story...Mr. Heath may be contacted at
jheath@joneswalker.com
Ninth Circuit Affirms District Court’s Finding of No Coverage for Interior Leak
March 24, 2026 —
Tred R. Eyerly - Insurance Law HawaiiApplying California law, the Ninth Circuit affirmed the district court’s finding that water damage caused by a leaking pipe over time was not covered under the insured’s homeowners’ policy. Mojica v. State Farm General Ins. Co., 2025 U.S. App. LEXIS 32405 (9th Cir. Dec. 11, 2025).
A small hole, slightly larger than a pen tip in size, developed in a pressurized hot water pipe. The resulting leak lasted for nearly six days and released enough water to saturate and ruin all the subflooring and flooring in the insureds’ home.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
USDOT’s DBE Interim Final Rule: How It Affects Current and Out-to-Bid DOT and Airport Projects
June 15, 2026 —
Zachary F. Jacobson - The Construction SeytIn our April 16, 2026 post, we discussed the U.S. Department of Transportation’s Interim Final Rule (IFR) concerning Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certification, specifically as it concerns transportation and airport projects in California.
This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals? The answer is that the IFR did more than change who qualifies as a DBE. It also changed how federally funded transportation and airport projects must be handled during the re-evaluation period. This affects active contracts, pending procurements, airport projects, design-build teams, and anyone relying on old assumptions about DBE goals and counting of DBE and ACDBE credit.
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Zachary F. Jacobson, Seyfarth Shaw LLPMr. Jacobson may be contacted at
zjacobson@seyfarth.com
Construction Liens and the “Substantial Performance” Doctrine
April 08, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn a recent case dealing with a construction lien, the driving issue was whether the air conditioning contractor “substantially performed” before recording its construction lien against residential property. The importance here pertains to the substantial performance doctrine with respect to construction liens. The Third District Court of Appeal explained, with relevant citations, this doctrine as follows:
Under Florida law, a contractor is entitled to a mechanic’s lien if he complies with all provisions of Chapter 713, governing construction liens, and “has substantially performed the contract.” Grant v. Wester, 679 So. 2d 1301, 1307 (Fla. 1st DCA 1996) (quotation omitted); Langley v. Knowles, 958 So. 2d 1149, 1151 (Fla. 5th DCA 2007) (“The substantial performance doctrine recognizes that a contactor who complies with all of the provisions of the contactor’s lien statute is entitled to enforce a lien if he has substantially, but not completely, performed his contractual obligations.”). Substantial performance is performance “so nearly equivalent to what was bargained for that it would be unreasonable to deny the promisee the full contract price subject to the promisor’s right to recover whatever damages may have been occasioned him by the promisee’s failure to render full performance.” Ocean Ridge Dev. Corp. v. Quality Plastering, Inc., 247 So. 2d 72, 75 (Fla. 4th DCA 1971).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Contract Disputes Act and Jurisdictional Requirements
March 17, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen dealing with a claim on a federal construction project, there are a couple of key background jurisdictional points. These points were briefly highlighted in the recent appeal, Mega Star Logistics Service Co. v. Department of State, CBCA 8232, 2026 WL 253738 (CBCA 2026). Here are the two points.
FIRST, when it comes to jurisdiction, for a board of contract appeals “to exercise jurisdiction over a claim, the CDA [Contract Disputes Act] requires the contractor to submit a written claim to the contracting officer for a COFD [contracting officer final decision], with a subsequent appeal of the COFD or deemed denial if the CO [contracting officer] does not issue a COFD.” Thus, you need to submit a formal claim under the Contract Disputes Act to the contracting officer to get a final decision from the contracting officer (or the contracting officer waiving the final decision by not timely furnishing one). Mega Star Logistics, supra.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Ahlers Cressman & Sleight named one of the Top 50 Construction Law Firms
August 11, 2026 —
Ahlers Cressman & Sleight PLLCAhlers Cressman & Sleight PLLC is pleased to announce its fifth consecutive year of recognition by Construction Executive as one of The Top 50 Construction Law Firms.
Since its first publication in 2003, Construction Executive magazine has served as the leading source for news, market developments, and business issues impacting the construction industry. Construction Executive established the rankings by asking over 600 U.S. construction law firms to complete a survey. Constructive Executive’s data collection includes: 2025 revenues from the firm’s construction practice; the number of attorneys in the firm’s construction practice; the percentage of the firm’s total revenues derived from its construction practice; the number of states in which the firm is licensed to practice; the year in which the construction practice was established; and the number of construction industry clients served during the fiscal year 2025.
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Ahlers Cressman & Sleight PLLC
Wilke Fleury Attorneys Recognized by 2026 Northern California Super Lawyers and Rising Stars!
July 20, 2026 —
Wilke FleuryWilke Fleury is pleased to announce that 18 of the firm’s attorneys have been selected for inclusion on the 2026 Northern California Super Lawyers and Rising Stars lists.
The annual Super Lawyers and Rising Stars selections recognize attorneys across a wide range of practice areas. This year’s honorees reflect the depth of Wilke Fleury’s litigation, business, healthcare, employment, bankruptcy, appellate, real estate, construction, and estate planning practices.
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Wilke Fleury