Are “Financial Hardship” Damages Recoverable?
June 08, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president and his wife. Are these damages recoverable? Drumroll…The Board ruled that the contractor cannot recover such financial hardship damages.
As it relates the personal financial hardship damages, the Board ruled, “Neither [the contractor’s] president nor his wife are a party to this contract, are in privity of contract with [the government], or are the beneficiaries under this contract. [The contractor], therefore, cannot recover for any losses that either one has suffered individually and that [the contractor] claimed in this appeal.” F.O.G., LLC, supra.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Why and When Construction Robotics Makes Sense
February 10, 2026 —
Aarni Heiskanen - AEC BusinessIn construction, robotics is often discussed in terms of technology: better AI, more capable machines, and robots on job sites. Recent research suggests that the question is less about whether robots can work and more about when and why they deliver real value.
An Aalto University research paper on computer-vision-driven robotic waste sorting offers a valuable lens into this. The researchers use ZenRobotics’ computer-vision-enabled automated system as a case study. The Finnish startup was acquired by Terex, a U.S. company, in 2022.
At first glance, waste sorting might seem like a niche application. But it illustrates a broader economic logic that aligns with findings across the broader body of research on construction robotics.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Cross-Office Team Secures Litigation Stay and Order of Arbitration on Behalf of Hotel Developer
February 17, 2026 —
Lewis Brisbois NewsroomNew York Partner Minyao Wang, Chicago Partner Bryan Sugar, and Denver/Washington, D.C. Partner Christopher Wood secured a victory on behalf of Lewis Brisbois’ client, a hotel developer, when the Circuit Court of Cook County, Illinois granted the client’s motion to dismiss and ordered the parties to proceed to arbitration.
In this matter, the 39 plaintiffs, represented by a New York based law firm that focuses on EB-5 litigation against high-end real estate developers, were foreign nationals living in China or Taiwan who were seeking EB-5 visas and invested in a lending company. The lending company loaned money to entities that were managing a project that involved renovating a hotel and constructing a mixed-use tower in downtown Chicago. Disputes developed among the parties. The foreign investors organized informally and ultimately filed suit against Lewis Brisbois’ client, alleging claims of breach of fiduciary duty, breach of contract, conversion, and conspiracy, as well as aiding and abetting conversion. The defendants faced exposure of at least $20 million.
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Lewis Brisbois
Jurisdiction Over Foreign Manufacturers in Construction Litigation
May 14, 2026 —
Timothy J. Repass & Miki J. Saito - Wood Smith Henning BermanA 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
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A New Vision for Safety: Construction Safety Week’s Five-Year Plan
February 17, 2026 —
Adam Jelen - Construction ExecutiveConstruction Safety Week has long been a powerful show of force—a catalyst for bringing the industry together and focusing on the critical importance of health and safety. Over the last decade, we’ve made meaningful strides: advancing best practices, transitioning from hard hats to helmets, shedding light on vital issues such as mental health, fostering a culture of care and accountability and creating partnerships and initiatives that improve jobsite safety.
Building on the progress we’ve made, we’ve launched a bold five-year vision to bring everyone together with trust and respect and to drive alignment in how safety is understood, owned and engineered at every step of the project. This is an industrywide effort to further deepen the culture of care centered around respect for the skilled craft and through all aspects of a project where all team members share this responsibility, this respect, across every phase: design, planning, construction and beyond.
Reprinted courtesy of
Adam Jelen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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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?
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Ownership and Licensing in Design Agreements
April 14, 2026 —
Abby Dvorkin - Snell & WilmerThe ownership and licensing of design documents in professional services agreements play a significant role in protecting the interests of the design professional and the project owner during and after project completion. The ownership or licensing of the drawings provision typically outlines who owns the drawings and specifications, who can use the documents, and how the documents can be used during and after the project.
Project owners and developers should understand that payment for design services does not automatically transfer ownership or an exclusive right to use the professional design. Under U.S. copyright law, the default rule is that the design professional retains ownership of the instruments of service absent a contractual provision transferring ownership or a license. See 17 U.S.C. § 101, et seq. The Architectural Works Copyright Protection Act provides that copyright protection applies to “pictorial, graphic and sculptural works” and includes “architectural works.” 17 U.S.C. § 102. A design professional may only transfer copyright ownership in writing. 17 U.S.C. § 204(a).
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Abby Dvorkin, Snell & WilmerMs. Dvorkin may be contacted at
advorkin@swlaw.com
Court Compels Appraisal Although Coverage Issues Exist
February 17, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe California federal district court granted the insured’s motion to compel appraisal despite the existence of outstanding coverage issues. K4 Dev. LLC v. ACE Am. Ins. Co., et al., 2025 U.S. Dist. LEXIS 211337 (C.D. Cal. Oct. 6. 2025).
The insured owned hotel property. It was insured by ACE while the hotel was under construction. During construction, the hotel suffered rainwater damage due to incomplete roofing systems. The water damaged the interior finishes and furnishings from the 6th floor down to the basement, including 32 guestrooms.
The insured’s experts determined that the covered water losses delayed the hotel’s opening by 144 days. The insured submitted a claim for the water damage, covered claim expenses, and delay in opening losses. ACE denied the claim for delay in opening losses, stating that its expert determined the Water Events did not delay the hotel’s opening. ACE, however, did pay for the repair damage caused by the Water Events.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com