Oracle's $16B Michigan Data Center Secures Financing as Power Contracts Face Appeals
June 08, 2026 —
Bryan Gottlieb - Engineering News-RecordA $16 billion hyperscale data center under construction outside Ann Arbor, Mich., has secured financing backed by Blackstone and other institutional investors, even as the project's power supply agreements now face a legal challenge before the Michigan Court of Appeals.
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Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
Modular Construction’s Hidden Risk: Where Things Go Wrong Between the Factory and the Field
June 15, 2026 —
Jack Mayo - ConsensusDocsIntroduction
As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them. The appeal is straightforward: faster timelines, controlled fabrication environments, and reduced on-site labor demands. But the risks that accompany these benefits are often less clear—and, in many cases, poorly defined.
For example, what happens when a prefabricated component is delayed past its installation window? Who is responsible for a defect discovered inside a sealed, installed module? What happens to warranty obligations when a prefabricated component must be modified on site?
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Jack Mayo, Jones Walker LLPMr. Mayo may be contacted at
jmayo@joneswalker.com
California Poised for the Most Significant Residential Construction Defect Reforms in Decades
September 01, 2026 —
Thomas D. Fama & Andrew J. Mallon - Wood Smith Henning BermanThe California Legislature is considering legislation that would dramatically alter the landscape of residential construction defect litigation. Assembly Bill 1903, currently pending before the Senate Judiciary Committee, proposes extensive amendments to California's Right to Repair Act (Civil Code sections 895-945.5) that would substantially strengthen procedural protections for builders while narrowing the scope of recoverable construction defect claims.
If enacted, the legislation would affect virtually every stage of a construction defect dispute- from the initial notice of claim through litigation and settlement- and would introduce an entirely new certification process for newly constructed condominium projects. This article details some of the most significant proposed changes.
Higher Burden for Construction Defect Plaintiffs
Perhaps the most consequential change is the bill's modification of the proof required to establish liability. current law generally requires a claimant to demonstrate the residence fails to satisfy one of the statutory performance standards established under the Right to Repair Act. AB1903 would instead require claimants to establish three separate elements:
- A violation of an applicable statutory performance standard;
- The violation caused appreciable, present, non-speculative physical damage to another building component; and
- The violation resulted from the original construction.
Reprinted courtesy of
Thomas D. Fama, Wood Smith Henning Berman and
Andrew J. Mallon, Wood Smith Henning Berman
Mr. Fama may be contacted at tfama@wshblaw.com
Mr. Mallon may be contacted at amallon@wshblaw.com
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Bad Faith Claim Survives Summary Judgment
June 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer’s motion for partial summary judgment on the insured’s bad faith claim, but granted the motion on the insured’s claim for punitive damages. Serbian Orthodox Church v. Brotherhood Mut. Ins. Co., 2026 U.S. Dist. LEXIS 58234 (S.D. Cal. March 19, 2026).
On February 1, 2023, the Church filed a claim for water damage with Brotherhood Mutual Insurance Company (BMIC). The claim was based on rain and wind that caused extensive water intrusion into the Sanctuary, damaging its plaster walls and ceilings and fresco paintings. The claim was assigned to Patrick Hurley. Hurley sent a letter discussing potential bars to coverage and requesting further information and documents from the Church.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Defend Now, Allocate Later? An Unresolved Tension in Colorado Construction Law
August 16, 2026 —
David McLain - Colorado Construction Litigation BlogFor decades, Colorado law has recognized an important distinction between the duty to defend and the duty to indemnify. The former ordinarily arises at the beginning of litigation; the latter generally cannot be determined until the underlying liability is known. That distinction makes intuitive sense. A defense that becomes due only after litigation concludes is not much of a defense.
But Colorado’s construction anti-indemnity statute, C.R.S. § 13-21-111.5(6), raises an interesting question about how that familiar rule operates in construction disputes. The statute expressly regulates contractual obligations not only to indemnify, but also to insure and defend, and it reflects a legislative policy that construction businesses should bear financial responsibility for their own negligence.
Those principles have developed along separate tracks. At some point, a Colorado appellate court may have to decide precisely how they fit together.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
IRMI Expert Commentary: NY Highest Court Confronts Downstream Risk Transfer for Subcontractor Bodily Injury Claims
March 17, 2026 —
Gregory D. Podolak & Alexander G. Hopkins - Saxe Doernberger & Vita, P.C.Originally published on IRMI.com, copyright 2026 International Risk Management Institute, Inc.
Subcontractor employee bodily injury claims (so-called action over claims) are a staple of construction risk management in the Empire State—so much so that the phrase “labor law” instinctively invites a shudder among the most experienced general contractors. The savvy among them intensely monitor case law developments and the evolution of the insurance market to ensure a cutting-edge, meticulously developed downstream risk transfer plan. And when guidance arrives from an appellate-level court, it’s a moment to take note.
This is one of those moments.
In late 2025, New York’s highest court—the NY Court of Appeals—had the rare opportunity to examine an all-too-routine bodily injury fact pattern and took the opportunity to closely examine the scope of contractual indemnity and its interplay with additional insured coverage in Dibrino v. Rockefeller Center N., Inc., 2025 N.Y. Slip Op. 07077, 2025 WL 3670593 (Ct. App. Dec. 18, 2025).
Reprinted courtesy of
Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and
Alexander G. Hopkins, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at GPodolak@sdvlaw.com
Mr. Hopkins may be contacted at AHopkins@sdvlaw.com
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New York Orders Moratorium on Large Data Center Permits
July 27, 2026 —
Levi W. Barrett - Peckar & Abramson, P.C.Levi W. Barrett, Co-Managing Partner of Peckar & Abramson’s New Jersey office, Co-Chair of the firm’s
Construction Contracts & Risk Management team, and Executive Committee Member, was recently quoted in “New York Orders Moratorium on Large Data Center Permits,” an article written by
Engineering News-Record (ENR). The article examines New York Governor Kathy Hochul’s executive order temporarily halting state environmental permit reviews for certain large-scale data center projects while regulators develop a comprehensive framework to address the sector’s energy demands, water consumption, environmental impacts, and effects on local communities. It also explores the broader implications of the moratorium for developers, contractors, investors, and other stakeholders, as well as the ongoing debate between economic development, AI-driven infrastructure growth, and environmental and utility ratepayer concerns.
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Levi W. Barrett, Peckar & Abramson, P.C.Mr. Barrett may be contacted at
lbarrett@pecklaw.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