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.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Poised for the Most Significant Residential Construction Defect Reforms in Decades
September 01, 2026 —
Thomas D. Fama & Andrew J. Mallon - Wood Smith Henning BermanThe California Legislature is considering legislation that would dramatically alter the landscape of residential construction defect litigation. Assembly Bill 1903, currently pending before the Senate Judiciary Committee, proposes extensive amendments to California's Right to Repair Act (Civil Code sections 895-945.5) that would substantially strengthen procedural protections for builders while narrowing the scope of recoverable construction defect claims.
If enacted, the legislation would affect virtually every stage of a construction defect dispute- from the initial notice of claim through litigation and settlement- and would introduce an entirely new certification process for newly constructed condominium projects. This article details some of the most significant proposed changes.
Higher Burden for Construction Defect Plaintiffs
Perhaps the most consequential change is the bill's modification of the proof required to establish liability. current law generally requires a claimant to demonstrate the residence fails to satisfy one of the statutory performance standards established under the Right to Repair Act. AB1903 would instead require claimants to establish three separate elements:
- A violation of an applicable statutory performance standard;
- The violation caused appreciable, present, non-speculative physical damage to another building component; and
- The violation resulted from the original construction.
Reprinted courtesy of
Thomas D. Fama, Wood Smith Henning Berman and
Andrew J. Mallon, Wood Smith Henning Berman
Mr. Fama may be contacted at tfama@wshblaw.com
Mr. Mallon may be contacted at amallon@wshblaw.com
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Modular Construction’s Hidden Risk: Where Things Go Wrong Between the Factory and the Field
June 15, 2026 —
Jack Mayo - ConsensusDocsIntroduction
As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them. The appeal is straightforward: faster timelines, controlled fabrication environments, and reduced on-site labor demands. But the risks that accompany these benefits are often less clear—and, in many cases, poorly defined.
For example, what happens when a prefabricated component is delayed past its installation window? Who is responsible for a defect discovered inside a sealed, installed module? What happens to warranty obligations when a prefabricated component must be modified on site?
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Jack Mayo, Jones Walker LLPMr. Mayo may be contacted at
jmayo@joneswalker.com
Kahana Feld Opens New Office in Sacramento, Adding Key Litigator and Expanding Northern California Footprint
August 24, 2026 —
Kahana FeldIRVINE, CA – Aug. 11, 2026 – Kahana Feld is pleased to announce the opening of a new office in Sacramento, CA. This will be the firm’s 19th office across the United States. Partner Melvin F. Marcia has joined Kahana Feld and will lead the opening of the Sacramento office. He is joined by attorneys
Matthew Brenner and
Britney Lucchesi as well as paralegal Michelle Welcker.
“We’re excited to welcome Melvin to the Kahana Feld team and expand our footprint in Northern California,” said Amir Kahana, Firmwide Managing Partner of Kahana Feld. “His addition strengthens Kahana Feld’s capabilities and will allow us to work more closely with our general liability, construction defect, and labor and employment clients in the Sacramento area while continuing to provide the level of service and experience they have come to expect from our firm.”
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Kahana Feld
ACEC Research Institute Report: Real Risk of AI Isn’t Technology. It’s the Org Chart.
September 01, 2026 —
ACEC Research InstituteWASHINGTON (August 19, 2026) – The ACEC Research Institute today released
Leading Through AI Risk: The Enterprise Framework for Engineering Firm Leaders, a new study finding that the most significant risks artificial intelligence poses to engineering firms are organizational rather than technological, and that firms treating AI as an IT initiative are managing the wrong issue.
The report, part of the Institute’s yearslong Firm of the Future initiative, combines an extensive literature review with in-depth interviews of 21 leaders drawn from engineering firms, public infrastructure owners, technology vendors, insurance and legal professionals, licensing and regulatory agencies, and AI consultants.
The report groups AI risk into eight interconnected domains:
- technical reliability and model risk
- professional liability and standard of care risk
- data governance, privacy, and intellectual property risk
- organizational and workforce risk
- ethical, regulatory, and reputational risk
- operational and cybersecurity risk
- financial and business model risk
- strategic leadership and enterprise governance risk
The last serves as the integrating domain through which firms coordinate responsible AI adoption enterprise wide.
The report stresses that firms do not experience these risks one at a time. Weak oversight may create legal liability. Workforce gaps may affect quality assurance. “Understanding these interactions,” the study notes, “is often more important than understanding individual risks independently.”
About the ACEC Research Institute
The ACEC Research Institute is the independent research arm of the American Council of Engineering Companies (ACEC). Its mission is to fund and deliver research to equip the engineering industry with actionable intelligence on the issues critical to its success. Learn more at www.acecresearchinstitute.org.
Special Counsel Lorelie (Lorie) Masters Appointed Chair of the ABA’s Commission on Women in the Profession
October 06, 2026 —
Hunton Andrews Kurth LLPSpecial counsel Lorelie (Lorie) Masters was recently appointed as the chair of the American Bar Association’s Commission on Women in the Profession. Established in 1987, the Commission was created to assess the status of women in the legal sector and remove barriers to their professional advancement. As chair, Lorie will lead a 12-member roster of commissioners, and a panel of special advisers, dedicated to ensuring equal participation and systemic equity for women lawyers across the justice system and pursuing various studies to identify issues uniquely facing women in the profession, including disparate treatment, training and recruitment, parenting, and other issues. Most recently, the Commission in late July 2026 issued a groundbreaking study about issues affecting the mental health and well-being of women lawyers.
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Hunton Andrews Kurth LLP
Seattle Team Obtains Summary Judgment in Real Estate Broker Professional Liability Action
July 20, 2026 —
Lewis BrisboisSeattle Partner Kathleen A. Nelson and Associate Synova M. L. Edwards prevailed on a hotly contested motion for summary judgment in Whatcom County, Washington court in a real estate broker professional liability action.
The plaintiff filed an action against Lewis Brisbois' clients, a real estate agent and brokerage firm, among several others, including the title company, purchasers and others related to the sale of real property following his complicated and long running divorce action. These claims primarily arose out of the clients’ reliance on an order signed by the court in the underlying divorce action. The order allowed the clients to execute the purchase and sale agreement, as the plaintiff was non-cooperative.
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Lewis Brisbois
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