Science-Based Standards for Wildfire Recovery: What California Policyholders Need to Know About A.B. 1642
March 03, 2026 —
Geoffrey B. Fehling & Yosef Itkin - Hunton Insurance Recovery BlogWildfires continue to present serious risks for California property owners. Unfortunately, commercial property owners, corporate facilities, landlords, and homeowners need to overcome not only the flames themselves, but also remediating hazardous contamination against a backdrop of unpredictable and ambiguous environmental safety standards. In response to the destructive Los Angeles area fires in 2025, the California Legislature recently introduced Assembly Bill 1642 aimed at creating uniform science-based standards for evaluating, testing, and clearing wildfire-impacted properties.
While A.B. 1642 is in its early stages of consideration, it could materially influence claims handling, remediation costs, risk management practices, and broader liability exposures for California policyholders.
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth LLP and
Yosef Itkin, Hunton Andrews Kurth LLP
Mr. Fehling may be contacted at gfehling@hunton.com
Mr. Itkin may be contacted at yitkin@hunton.com
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Flatiron Said Disputed Concrete Mix Cost Millions on Large Caltrans Project
June 22, 2026 —
Elaine Silver & Richard Korman - Engineering News-RecordFor awhile in 2023, part of the California Dept. of Transportation's (Caltrans) Fix 50 HOV lane and resurfacing project in Sacramento itself needed to be fixed.
Reprinted courtesy of
Elaine Silver, Engineering News-Record and
Richard Korman, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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Tariffs As Taxes — What Learning Resources, Inc. v. Trump Means for Contractors and the WSDOT Specifications
March 17, 2026 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCIn October 2025, we explored a pressing question for public works contractors:
should post-contract award tariffs be reimbursable? The crux of that analysis was whether tariffs imposed after contract award constitute a tax under the Washington State Department of Transportation (WSDOT) Standard Specifications, triggering reimbursement under Section 1-07.1(5)B (“tax changes”).
Since then, a landmark Supreme Court ruling in Learning Resources, Inc. v. Trump has clarified the legal nature of tariffs in a way that could significantly affect this debate.
In Learning Resources, Inc. v. Trump, 607 U.S. (2026), the U.S. Supreme Court addressed whether the President had the authority under the International Emergency Economic Powers Act (IEEPA) to unilaterally impose broad tariffs on imports.
Read the full story...Reprinted courtesy of
Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Seventh Circuit, With an Assist From the Illinois Supreme Court, Finds That “Pollution Exclusion” Bars Coverage For Emissions Allowed Under Regulatory Permit
April 20, 2026 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Griffith Foods Int’l Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 24-1217 & 24-1223 (7th Cir. Mar. 13, 2026), the Seventh Circuit addressed the meaning and scope of a pollution exclusion in a standard-form commercial general liability insurance policy for underlying injuries caused by ethylene oxide (EtO) emissions. The insurance dispute arose out of underlying tort litigation involving bodily injury claims, including cancer, allegedly caused by emissions of ethylene oxide over a 35-year period from 1984 through 2019 by Griffith Foods International and later Sterigenics U.S. The pollution exclusion at issue generally barred coverage for “bodily injury” arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, or other irritants, contaminants or pollutants.
Interpreting similar exclusions, the Illinois Supreme Court has previously held that the standard CGL pollution exclusion bars coverage for bodily injuries caused by traditional environmental pollution (essentially industrial emissions of pollutants), but not by more commonplace emissions (such as carbon monoxide from a residential furnace or excess chlorine in a backyard swimming pool). See American States Insurance Co. v. Koloms, 177 Ill. 2d 473 (Ill. 1997). In Griffith Foods, the District Court initially concluded that the pollution exclusion did not apply because the companies emitted EtO pursuant to a permit issued by the IEPA. The District Court reached this latter conclusion by applying Erie Insurance Exchange v. Imperial Marble Corp., 957 N.E.2d 1214 (Ill. App. Ct. 2011), an Illinois intermediate appellate court decision finding it ambiguous whether a CGL policy’s pollution exclusion barred coverage for emissions authorized by regulatory permit.
Read the full story...Reprinted courtesy of
Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
New Executive Order on AI Innovation and Security: Key Takeaways for the Construction Industry
June 15, 2026 —
Richard R. Volack & Denis Serkin - Peckar & Abramson, PCOn June 2, 2026, President Trump signed an Executive Order titled “Promoting Advanced Artificial Intelligence Innovation and Security.” At its core, the Order is a cybersecurity and national-security measure rather than a broad regulation of how private companies develop or use AI. It directs federal agencies to harden government systems against AI-enabled cyber threats, establishes voluntary frameworks for collaboration between the federal government and the AI and critical-infrastructure sectors, and strengthens criminal enforcement against the malicious use of AI.
Notably, the Order expressly disclaims any intent to create a “mandatory governmental licensing, preclearance, or permitting” regime for the “development, publication, release, or distribution of new AI models.” Instead, the Executive Order seeks to “promote AI innovation and security” by working with the private sector to modernize government and private-sector information systems and harden them against external threats, protect intellectual property from exploitation or theft, and cultivate American AI capabilities.
Reprinted courtesy of
Richard R. Volack, Peckar & Abramson, PC and
Denis Serkin, Peckar & Abramson, PC
Mr. Volack may be contacted at rvolack@pecklaw.com
Mr. Serkin may be contacted at dserkin@pecklaw.com
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Conditional Payment Bond Consideration-Make Sure There Is Pay-If-Paid Provision
June 29, 2026 —
David Adelstein - Florida Construction Legal UpdatesIf a general contractor is going to have a conditional payment bond, it needs to ensure it subcontracts contain pay-if-paid or pay-when-paid provisions. This conditional payment language in subcontracts is the general contractor’s defense that it doesn’t have to pay a subcontractor UNTIL owner has paid the general contractor for the subcontractor’s work.
The general contractor (and the surety) can look at the conditional payment bond with the s. 713.245 legend stamped on its face designating the conditional nature of the bond, and assume the conditional structure is locked in against the bond: no payment from the owner, no obligation to the subcontractors under the bond. But what happens when the subcontracts contain no express conditional payment language despite having a valid conditional payment bond?
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
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 BlogIn 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
Insured Does Not Prevail on Summary Judgment Motion Invoking Ensuing Loss Provision
May 05, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insured’s motion for summary judgment finding genuine issues of fact regarding implication of the policy’s ensuing loss provision. Stella Prop. Dev.. & Event Productions, LLC v. Auto-Owners Ins. Co., 2026 U.S. Dist. LEXIS 15854 (W.D. Pa. Jan. 28, 2026).
Stella owned a cultural center that was insured under a commercial property all-risk policy issued by Auto-Owners. A windstorm with gusts of 65 miles per hour struck the Center causing damage. The Center’s inspector found extensive wind damage on nearly all facets of the roof. Further, the inspector found the existing organic shingles were in “very poor condition” and were “defective, discontinued, and no longer available.” The estimated cost of repairs to the roof was $108,010.52.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
