4th Department Narrowly Interprets Professional Services
August 11, 2026 —
Craig Rokuson - Traub LiebermanIn the recent case of Cty. of Erie v. Selective Ins. Co. of Am., 2026 NY Slip Op 04092 (App. Div. 4th Dept.), New York’s Appellate Division, Fourth Department held that a general liability carrier for a construction manager owed additional insured coverage to the County of Erie, notwithstanding an exclusion in the construction manager’s policy for injuries arising out of professional services.
The underlying case involved injuries sustained when the underlying plaintiff fell off of her bicycle at a park owned by the County when she transitioned from the pavement edge to grass.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
Doctrine of Substantial Performance When It Comes to Payment
July 27, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:
Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”
Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (internal citations omitted).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Presumption of Prejudice Applies to All Affirmative Defenses Regarding Insured’s Failure to Comply with Post-Loss Policy Conditions
June 23, 2026 —
David Adelstein - Florida Construction Legal Updatesn a recent property insurance coverage dispute, an issue on appeal pertained to the “prejudice” jury instruction associated with the insured’s failure to comply with post-loss policy conditions. The trial court found that the prejudice only pertained to prompt notice and not other post-loss policy conditions. This was reversed on appeal as prejudice applied to ALL the post loss policy conditions that the insured failed to comply with, not just the prompt notice requirement. The prejudice presumption applies to all affirmative defenses regarding an insured’s failure to comply with post-loss policy conditions.
Consider this discussion when dealing with an insurer raising prejudice as an affirmative defense to do an insured’s failure to comply with post-loss policy conditions, and the associated burdens of proof:
On appeal, [the insurer] contends the trial court erred by instructing the jury that the presumption of prejudice was inapplicable to all of its post-loss obligation defenses except prompt notice. We agree.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Water Reuse Emerges as a Critical Strategy for Data Center Development
June 22, 2026 —
Ashleigh Myers, Jillian Marullo & Jason Drogin Atwood - Gravel2Gavel Construction & Real Estate Law BlogAs demand for data centers continues to accelerate, water availability is emerging as a critical factor in project development and long-term operations. Although power supply and transmission access have historically dominated siting discussions, increasing water constraints in many regions are placing greater focus on the substantial volumes of water required to support data center cooling systems. As we
covered previously, data centers are frequently located in areas already experiencing water stress and require substantial volumes of water to operate—roughly 228 billion gallons in 2023 in the United States alone—with water use projected to
increase by up to 170% by 2030.
Alternative cooling options, such as free-air cooling or mechanical chillers, can reduce direct water consumption but introduce their own tradeoffs. Free-air cooling is climate-dependent and often ineffective in hotter regions, while mechanical chillers increase energy demand, potentially shifting water consumption upstream through increased electricity generation.
Reprinted courtesy of
Ashleigh Myers, Pillsbury,
Jillian Marullo, Pillsbury and
Jason Drogin Atwood, Pillsbury
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
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Breaking Ground On New California Public Works Prevailing Wage Requirements
April 27, 2026 —
Heather Frisch, Christopher Bouquet & Ashley Stein - The Construction SeytSeyfarth Synopsis: As of January 1, 2026, AB 889 bulldozed California’s Prevailing Wage law, which impacts public works employers—including public agencies, the contractors that work for them, and private owners and developers whose projects may be subject to public works requirements. The amended law reframes the calculation of fringe benefits for individuals who work on public works project and mandates annualization of such benefits, demolishes the practice of frontloading these benefits, and requires employers to maintain inspection-ready records of compliance.
This year, AB 889 significantly revised California’s prevailing wage law, codified at Labor Code section 1773.1, to clarify the state’s prevailing wage regulations and streamline enforcement. Accordingly, as of January 1, 2026, California public works employers are required to annualize employees’ fringe benefits and maintain specific documentation demonstrating statutory compliance. These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements. Continue reading for the blueprint of how to comply with the state’s amended prevailing wage law.
Reprinted courtesy of
Heather Frisch, Seyfarth Shaw LLP,
Christopher Bouquet, Seyfarth Shaw LLP and
Ashley Stein, Seyfarth Shaw LLP
Ms. Frisch may be contacted at hfrisch@seyfarth.com
Mr. Bouquet may be contacted at cbouquet@seyfarth.com
Ms. Stein may be contacted at astein@seyfarth.com
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Construction Contract Negotiation & Drafting: A Practical Checklist (and Where State-Specific Issues Can Surprise You)
April 20, 2026 —
Michelle Cooper - Sheppard Construction and Infrastructure Law BlogConstruction contract negotiation is often treated as a “forms exercise,” especially when the parties start from familiar templates (e.g., AIA forms). In practice, though, the biggest problems tend to arise not from the existence of a form, but from (i) misalignment among the project’s governing documents and participants, (ii) ambiguity in pricing and payment mechanics, and (iii) state-specific statutory requirements that override negotiated terms.
This article includes a practical checklist intended to help owners, developers, and contractors streamline contract negotiations, reduce downstream disputes, and avoid unpleasant surprises during payment administration.
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Michelle Cooper, SheppardMs. Cooper may be contacted at
mcooper@sheppard.com
At the Intersection of Indemnity and Prevailing Wages
March 17, 2026 —
Garret Murai - California Construction Law BlogIn a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages.
The Nabors Case
In
Nabors Corporate Services, Inc. v. City of Long Beach, 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands Oil Production Company and the City of Long Beach after it was found liable in a class action lawsuit for failing to pay prevailing wages to its employees. Nabors’ contract with Tidelands did not require the payment of prevailing wages and neither Tidelands nor the City believed that the project, which involved “oil well plug and abandonment” work, required the payment of prevailing wages.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
“The Superintendent Told Us to Do It:” Why Verbal Approval May Not Be Enough
June 02, 2026 —
Andrew Lintner - Colorado Construction Litigation BlogIn construction defect litigation, one scenario appears repeatedly: a subcontractor installs work in a manner that differs from the plans, specifications, manufacturer instructions, or industry standards after being verbally directed to do so by the general contractor, superintendent, architect, or owner’s representative.
At the time, the decision may seem minor. The project is moving quickly, the field team wants to maintain progress, and nobody wants to stop working over what appears to be a small issue. The subcontractor may trust the superintendent or project manager and assume the conversation will be remembered later if questions arise.
Years later, however, when the project experiences problems, the people involved may deny the conversation occurred, remember it differently, or simply no longer remember the project. Without written documentation, the subcontractor can find itself defending claims for defective work, even though it performed the installation exactly as directed.
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Andrew Lintner, Higgins, Hopkins, McLain & Roswell, LLCMr. Lintner may be contacted at
alintner@hhmrlaw.com
