Insured General Contractor Prevails on Motion for Summary Judgment to Establish Builder’s Risk Coverage
July 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe general contractor’s motion for partial summary judgment successfully established that damage to footings in place before the policy period was covered after the collapse of a building. Big D Builders, Inc. v. Am Zurich Ins. Co., 2026 U.S. Dist. LEXIS 72012 (D. Idaho March 31, 2026).
Big D was the general contractor for building a new airplane hangar by erecting a 38,000 square foot structure. Before Big D began construction, the site of the hangar did not contain any pre-existing structures or buildings. Before completion of the hangar, it collapsed and caused extensive property damage.
The builder’s risk policy issued by Zurich covered certain aspects of the construction project for the policy period December 28, 2023, to December 28, 2024. Zurich accepted coverage for most of the damage but not for damage to footings and columns installed prior to the start date of the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
ACEC Supports BUILD America 250 Act as Important First Step on Surface Reauthorization
May 26, 2026 —
The American Council of Engineering CompaniesWASHINGTON -- The American Council of Engineering Companies (ACEC), the business voice of America’s engineering and design services industry released the following statement on the BUILD America 250 Act:
"Chairman Graves and Ranking Member Larsen have taken an important bipartisan step toward reauthorizing the federal surface transportation programs that are critical to economic growth in every state. The BUILD America 250 Act provides five years of stability in funding road and transit projects, raises new revenues to address the solvency of the Highway Trust Fund, and includes meaningful provisions to strengthen project delivery, advance digital infrastructure, and improve the contracting framework that engineering firms rely on every day. ACEC will continue to advocate for investment levels that keep pace with the country's growing infrastructure needs, and we urge the Committee to keep this process moving forward."
The American Council of Engineering Companies (ACEC) is the business association of America’s engineering industry, representing more than 5,500 independent engineering firms and more than 650,000 professionals throughout the United States engaged in the development of America’s transportation, water, and energy infrastructure, along with environmental, industrial, and other public and private facilities. Founded in 1906 and headquartered in Washington, D.C., ACEC is a national federation of 51 state and regional organizations.
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
Five Snell & Wilmer Partners Named to Utah Business’ 2026 Legal Elite
September 29, 2026 —
Snell & WilmerSALT LAKE CITY – Snell & Wilmer is pleased to announce that five partners have been named to Utah Business’ 2026 “Legal Elite.” The annual recognition honors leading Utah attorneys who are making a meaningful impact in their respective areas of practice. Honorees are peer-nominated and selected by a panel of experienced legal and law enforcement professionals based on their legal knowledge, commitment to ethical standards, and professional achievements.
Wade R. Budge is a land use and real estate lawyer with significant experience advising developers and owners in all aspects of real estate development. He has negotiated entitlements for master planned communities, industrials projects, retail centers, office buildings, subdivisions, and mountain resorts throughout Utah. He also regularly represents clients in the use, acquisition, and disposition of real estate projects throughout the Western United States. Budge has advised developers in obtaining public incentives and using public finance tools, including tax increment financing, to facilitate new and redevelopment projects, and regularly advises clients with government relations matters involving state and local governments. Budge has negotiated public-private partnerships with dozens of local governments and with every one of the state’s development agencies, including the Point of the Mountain State Land Authority, the Military Installation Development Authority, and the Utah Fairpark Area Investment and Restoration District.
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Snell & Wilmer
In the Eye of the Beholder: Court of Appeal Finds Duty of Care Owed by Owner and Contractors for Death of Minors Caused by Independent Truck Driver
May 05, 2026 —
Garret D. Murai - California Construction Law BlogI was a T.A. for my high school history teacher, a really smart and nice guy, Mr. Reynolds. In the room at the back of the classroom which served as his office he had
the picture above. It’s called “My Wife and My Mother-in-Law” and is taken from a German postcard from 1888. Depending on how you look it, you might see fashionable young lady, or an old lady.
Cases can sometimes be like that: You see what you want to see. The next case is also like that.
In
Lorenzo v. Calex Engineering, Inc., 110 Cal.App.5th 49 (2025), the 2nd District Court of Appeals reversed a motion for summary judgment granted in favor of an owner and its contractors in a case involving the death of two minors struck by a dump truck enroute to a non-permitted off-site staging area.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Michael C. Zisa and Phillip Boldt Co-Author D.C. Chapter of “50-State Guide to Electronic Execution of the General Agreement of Indemnity”
October 06, 2026 —
Michael C. Zisa & Phillip Boldt - Peckar & Abramson, P.C.Michael C. Zisa, Co-Managing Partner of P&A’s Washington, D.C. office, Chair of the Surety and Construction Related Insurance Defense practice, and Co-Chair of the Crisis Management team, and Phillip Boldt, an Associate in P&A’s Washington, D.C. office, have co-authored the District of Columbia chapter of the American Bar Association (ABA) Fidelity and Surety Law Committee and The Surety & Fidelity Association of America’s (SFAA), “50-State Guide to Electronic Execution of the General Agreement of Indemnity.”
Reprinted courtesy of
Michael C. Zisa, Peckar & Abramson, P.C. and
Phillip Boldt, Peckar & Abramson, P.C.
Mr. Zisa may be contacted at mzisa@pecklaw.com
Mr. Boldt may be contacted at pboldt@pecklaw.com
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Nordics Are Europe’s Next Data Center Hub
October 05, 2026 —
Aarni Heiskanen - AEC BusinessOn September 9, 2026, Google announced its largest single investment in Europe. The company commits at least €13 billion to Finnish data centers and energy infrastructure in 2027 and 2028, expanding the existing Hamina campus and adding three new sites in Kajaani, Muhos, and Vaala. For the construction sector, this is great news: thousands of hectares, dozens of buildings, and a construction program that will extend well beyond the two-year investment window.
Four Sites, One Regional Cluster
Google is not a newcomer in Finland. Back in 2009, it converted a former paper mill in Hamina into a seawater-cooled data center. It has invested around €4.5 billion there over 15 years, and the site’s waste heat already feeds Hamina’s district heating network. The new program shifts the center of gravity north, to the border of North Ostrobothnia and Kainuu.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Underlying Complaint Alleges Possibility of Coverage, Triggering Duty to Defend
September 15, 2026 —
Tred R. Eyerly - Insurance Law HawaiiIn a dispute among insurers for various defendants in the underlying case regarding the providing of a defense, the Second Circuit vacated, in part, the district court’s judgment and remanded the case. New Your Marine and Gen. Ins. Co. v. Fed. Ins. Co., 2026 U.S. App. LEXIS 18087 (2nd Cir. June 23, 2026).
Mary Guzman, who worked for a cleaning company, PBM, LLC, alleged that she was injured when a glass panel in a revolving door fell onto her as she cleaned the door. She filed suit in state court against the owners of the building as well as the lessee of the fifteenth floor where the accident occurred, Bank of New York Mellon (Bank). She alleged the owners and the Bank were negligent in creating the dangerous condition that caused her injury.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
