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Fourth Circuit Extends Coverage to Contractor

May 14, 2026 — Hunton Insurance Recovery Blog
The Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured. Read the full story...
Reprinted courtesy of Hunton Andrews Kurth LLP

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Real Estate & Construction News Roundup (3/11/25) – An AI Inflection Point for Hotels, Investor Pivot in Build-to-Rent and Looming Legislation for Single-Family Investors

March 24, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, lodging demand for World Cup brings growth, commercial property management firms use of AI becomes firmer, construction industry shows slow start to the year, and more!

• The hotel industry has reached an inflection point, where owners and developers are embracing artificial intelligence more, but are also increasingly in need of greater guidance on how to convert early adoption into long-term returns. (Jenna Graber, Hotel Dive)
• While the upcoming 2026 FIFA World Cup is expected to bring notable RevPAR gains to U.S. host cities, the overall domestic impact will be negligible. (Noor Adatia, Hotel Dive)
• Company leaders’ often vague predictions of how AI will be adopted are giving way to more fully formed strategies in the commercial real estate industry. (Joe Burns, Facilities Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Safeguarding Your Privileged Construction Information With a Clawback Agreement

June 08, 2026 — Laura Fraher - Construction Executive
For contractors and construction executives, a dispute that escalates to litigation brings risks that go well beyond the jobsite. When a dispute escalates to litigation, the attorney-client privilege is a critical protection to safeguard your interests. Disclosing privileged material can undermine your litigation position and, in some cases, negatively impact your business. In the construction context, this often includes sensitive communications about project delays, defect investigations, safety incidents or payment disputes—materials that can significantly impact both liability and reputation. During litigation, the discovery process requires the exchange of documents and data with your adversary. If privileged materials are disclosed to your adversary during discovery you risk the waiver of your privilege, which in plain terms means you lose the protection of the privilege and make the privileged information, and in some cases all other information related to the same subject matter, available to your adversary. It is critical that your attorney take steps to protect against the unintentional disclosure of privileged materials during discovery to avoid a waiver. Reprinted courtesy of Laura Fraher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...
Ms. Fraher may be contacted at lfraher@barclaydamon.com

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Every High-Tech Building Has Many Lifespans

August 16, 2026 — Aarni Heiskanen - AEC Business
When I worked as an architect, our team designed a laboratory for fuel research. The facility included a large research hall where various boilers and other devices were tested and analyzed. The setup required extensive floor channeling under the thick concrete floor. We suggested building a modular system that would allow flexibility in the future, when requirements would certainly change. They did not want that because of budget constraints. The high-tech construction trend is spreading. Data centers, semiconductor fabs, battery plants, and life science facilities share one property that sets them apart from ordinary buildings. The technology inside turns over faster than the structure around it. Server generations change every three to five years. Rack densities have risen from 10 or 20 kW to 130 kW and beyond in just a few years. A high-tech facility is really several buildings with different lifespans inside one envelope, and we keep designing them as if they were one. The failure is not that things become obsolete. It is that we never say when each layer is expected to. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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Texas Voids Out-of-State Forum and Choice of Law Clauses in Construction Contracts

March 17, 2026 — Conor G. Bateman - Snell & Wilmer
The Texas Legislature amended statutes impacting construction contracts for projects located in Texas to declare any forum selection clause or choice of law provision “void as against public policy,” and mandate venue for any litigation or arbitration shall be in the Texas county in which the work is performed. The parties may stipulate to a different venue only after the dispute arises. Forum selection clauses and choice of law provisions are common in construction contracts. Frequently, general contractors based in other jurisdictions require subcontractors to sign contracts designating the contractor’s preferred venue for any dispute. These contracts may also select the law of another state to govern the contract. Read the full story...
Reprinted courtesy of Conor G. Bateman, Snell & Wilmer
Mr. Bateman may be contacted at cbateman@swlaw.com

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Real Estate & Construction News Roundup (6/24/26) – HUD to Fund AI Grants, Luxury Hotel Deal Investment Activity to Surge, ESPCs to Fund Energy and Infrastructure Improvements

July 06, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, data centers are exposed to climate change, commercial tenant sues CoStar, cities see opportunities in emerging sports markets, and more!

• With deferred maintenance growing and capital dollars stretched thin, local governments are using ESPCs to fund energy and infrastructure improvements through future operational savings. (Vicky Uhland, Construction Dive)
• The U.S. Department of Housing and Urban Development is offering up to $3 million in grants for local governments to deploy automated permitting and building code systems. (Ryan Kushner, Construction Dive)
• Luxury hotel deals are set to see a surge in investment activity due to strong fundamentals and strengthening capital markets. (Noor Adatia, Hotel Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Agent Not Liable for Loss Given Insured’s Vague Instructions for Coverage

April 08, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The Illinois Appellate Court affirmed the district court’s grant of summary judgment to the insured’s agent because there was no breach of duty. Jon Van Order v. Hauk, et al., 2025 Ill. App. Unpub. LEXIS 2378 (Ill. Ct. App. Dec. 23, 2025). The insured began renovating a vacant home in October 2018. He met with agent Joseph Hauk and explained the property was vacant and would be going through renovations for the next several months. Hauk then procured a policy through Shelter Insurance Company insuring the vacant property against several specified perils. The policy provided coverage for water damage if “[t]he exterior of the building sustained a covered loss” and “that loss created an opening through which the water entered.” Damage caused by escaping water from within a plumbing system was excluded if: (1) the damage was caused by a “continuous or repeated leakage over a period of fourteen days or more” or (2) the insured premises had been vacant for 30 consecutive days immediately preceding the loss. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Jurisdiction Over Foreign Manufacturers in Construction Litigation

May 14, 2026 — Timothy J. Repass & Miki J. Saito - Wood Smith Henning Berman
A recent decision from the Washington Court of Appeals provides important guidance on personal jurisdiction over foreign product manufacturers in construction and infrastructure litigation. In King County v. Aquatherm GmbH, No. 85572-7-I (Wash.Ct. App.Div.I)(unpublished), the court addressed whether a German manufacturer could be sued in Washington for alleged defects in piping used in major public infrastructure projects. The ruling offers a detailed, fact-driven roadmap for how Washington courts evaluate jurisdiction over foreign manufacturers operating through layered distribution networks. It also reflects a broader trend toward focusing on real-world commercial conduct rather than formal corporate structure. Background of the Case King County sued after widespread failures in polypropylene piping installed at the King County Correctional Facility. The pipe, manufactured by Aquatherm GmbH in Germany, was marketed, distributed, and installed through a network of U.S.-based entities. Following a six-week trial, the jury returned a verdict exceeding $18 million on claims under the Washington Product Liability Act and Consumer Protection Act. Aquatherm challenged, among other things, the trial court's exercise of personal jurisdiction. Reprinted courtesy of Timothy J. Repass, Wood Smith Henning Berman and Miki J. Saito, Wood Smith Henning Berman Mr. Repass may be contacted at trepass@wshblaw.com Ms. Saito may be contacted at msaito@wshblaw.com Read the full story...

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