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
$10.5M Settlement Ends George Washington Bridge Debris Liability Fight
September 15, 2026 —
Bryan Gottlieb - Engineering News-RecordA $10.5-million settlement that recently came to light has ended a six-year legal fight over whether a truck part that may have been lying on the George Washington Bridge roadway for more than 10 minutes was there long enough for the Port Authority of New York and New Jersey to have found and removed it before it caused a catastrophic accident.
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Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
$356 Million Judgement Against Developer for Defective Construction of DC Condominium
August 16, 2026 —
Nicholas D. Cowie - Cowie Law GroupOn July 31, 2026, the Superior Court of the District of Columbia entered a $356,085,513.00 judgment against developers JBG Smith for defective construction and renovation of the Wardman Tower Residential Condominium in Washington, D.C. The case is Wardman Tower Residential Condominium Unit Owners Association v. JBG Smith Properties, et al., No. 2020 CA 004807 B (D.C. Super. Ct.). In a 148-page
Trial Order, the D.C. Superior Court awarded $118,695,171.00 in damages in favor of the condominium association and against the condominium developers, including JBG Smith. The Court trebled those damages pursuant to the District of Columbia Consumer Protection Procedures Act (“CPPA”) to reach an ultimate judgment of $356,085,513.00. See Cowie Law Group:
DC Condominium Construction Defects: Recovering Attorney’s Fees, Litigation Expenses & Treble Damages Under the Consumer Protection Procedures Act.
Cowie Law Group, P.C. filed the lawsuit on behalf of the Association in 2020. The firm represented the Association throughout years of pretrial discovery and ultimately served as trial counsel with Williams & Connolly LLP during a lengthy bench trial before the Honorable Yvonne Williams. The Cowie Law Group team included attorneys, George A. Bealefeld, III, Albert G. McCarraher, Stanford L. Kimmel, III and Nicholas D. Cowie.
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Nicholas D. Cowie, Cowie Law GroupMr. Cowie may be contacted at
ndc@cowielawgroup.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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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
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Real Estate & Construction News Roundup (7/15/26) – The World Cup’s Effect on Commercial Real Estate, Megadeals Lift CRE Sales and Algorithmic Pricing Lawsuits Continue
July 27, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, DOT earmarks $1.73B in BUILD grants, federal housing bill becomes law, data center surge cools off, and more!
- Data center planning cooled off month over month from “extraordinary levels” to start the summer, while other areas of construction finally picked up a little steam. (Sebastian Obando, Construction Dive)
- The U.S. Department of Transportation announced $1.73 billion in 2026 BUILD grants covering 127 projects across 50 states, Washington, D.C., American Samoa, Guam and Puerto Rico. (Joe Bousquin, Construction Dive)
- As algorithmic pricing lawsuits continue to play out around the country, more apartment owners and managers have settled. (Julie Strupp, Multifamily Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Congratulations to BWB&O’s Orange County Team for Securing a Strong MSJ Result in a Residential Gas Explosion Matter!
May 14, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPHuge Congratulations to Partner
Kevin Wheeler and Associate
Lindsey Wells for securing a strong result on a Motion for Summary Judgment / Summary Adjudication filed on behalf of their client, the City of Murrieta. This was a complex, multi-party matter arising from a residential gas leak and explosion, where Plaintiffs alleged the City and MFPD failed to properly respond to the incident. After multiple complaints were consolidated and extensive defense work narrowed the case, eighteen plaintiffs remained asserting five causes of action against the City, prompting a comprehensive MSJ/MSA targeting liability, causation, and damages.
The Court’s ruling reflects a significant win, particularly on the immunity framework. The Court eliminated the core negligence and assumed-duty claims arising from fire protection and emergency response activities. It further disposed of the misrepresentation and public nuisance claims. At the end of the day, three plaintiffs were dismissed entirely for failure to comply with Government Claims Act requirements, further reducing the scope of the case. While the dangerous condition claim remains, it does so in a very limited posture.
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Bremer Whyte Brown & O'Meara LLP
Builders Risk/Construction All Risks and Delay in Start-Up Coverage for Large Energy Projects: Protecting Revenue Before Operations Begin
September 21, 2026 —
Will Bennett - SDV FenchurchThe Most Significant Loss May Be the Delay, Not the Damage
Power and energy projects are uniquely vulnerable to losses during construction. Whether the project involves a utility-scale solar facility, battery storage installation, a wind farm, transmission project, LNG terminal, or conventional generation facility, loss events in this sector often have consequences far more impactful than the actual cost of repairing damaged property.
Any number of construction losses can delay commercial operation of the facility by months, triggering lost revenues, financing impacts, contractual penalties, and investor concerns. In many cases, those delay-related losses significantly exceed the underlying repair costs.
Construction All Risk (“CAR”) insurance and Delay in Start-Up (“DSU”) coverage are designed to respond to these exposures. However, recovering delay-related losses is far more complicated than many insureds anticipate, particularly when projects involve international stakeholders, global supply chains, and London market insurance placements.
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Will Bennett, SDV FenchurchMr. Bennett may be contacted at
will.bennett@sdvfenchurch.us
