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DIRECTORY AND CAPABILITIES

Louisiana Legislature Enacts Act 932 – Significant Changes to Insurer Bad-Faith Exposure for Failure to Settle

July 13, 2026 — Tabitha R. Durbin & Jennifer E. Michel - Lewis Brisbois
The Louisiana Legislature has enacted Act 932 (formerly House Bill 1162), which became law this week without the Governor's signature pursuant to the Louisiana Constitution, after expiration of the applicable constitutional review period. Act 932 makes several important amendments to Louisiana's insurer bad-faith statute and appears intended, at least in part, to address issues arising from the Louisiana Supreme Court's decision in Kelly v. State Farm Fire & Casualty Co., 169 So.3d 328 (La. 2015). The Act also makes changes regarding claim payments involving licensed contractors. The Act takes effect on August 1, 2026. Key Takeaways Act 932:

• Limits certain bad-faith causes of action (bad faith failure to settle) involving personal injury and bodily injury claims where good-faith disputes exist or where an insurer has not been afforded sufficient opportunity to respond to a settlement demand.
• Requires insurers and adjusters to verify a contractor's Louisiana license status before issuing claim payments when a contractor is named as a payee on a check for repair or restoration of immovable property.
• Creates a statutory safe harbor protecting insurers from bad-faith penalties and attorney fees when payment delays result from an inability to verify a contractor's license, provided specified documentation and notice requirements are met.

Reprinted courtesy of Tabitha R. Durbin, Lewis Brisbois and Jennifer E. Michel, Lewis Brisbois Ms. Durbin may be contacted at Tabitha.Durbin@lewisbrisbois.com Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com Read the full story...

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The AI Knows Too Much: When Employees Feed Trade Secrets into Generative AI Tools

April 14, 2026 — Kazim A. Naqvi & John V. Mysliwiec - Sheppard
Every time an employee pastes proprietary source code, a customer list, or a confidential business strategy into ChatGPT, Claude, or Google Gemini, they may be quietly dismantling the legal protections that make those secrets worth protecting. Courts and regulators are only beginning to grapple with this problem, and right now, the burden of preventing it falls squarely on employers. The Legal Stakes Under the federal Defend Trade Secrets Act (“DTSA”) and the Uniform Trade Secrets Act (“UTSA”) as adopted across most states, a trade secret plaintiff must show that the information at issue was subject to reasonable measures to maintain its secrecy. Courts have historically credited measures like confidentiality agreements, physical access controls, and employee training—but those safeguards were designed for a world of thumb drives and disgruntled employees. They were not built for a world where a well-meaning engineer can, in seconds, transmit an entire corpus of proprietary data to a third-party AI platform operating under terms of service that may permit the provider to use inputs for model training. Reprinted courtesy of Kazim A. Naqvi, Sheppard and John V. Mysliwiec, Sheppard Mr. Naqvi may be contacted at knaqvi@sheppard.com Mr. Mysliwiec may be contacted at jmysliwiec@sheppard.com Read the full story...

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Anomaly in Adding a Third-Party Claimant to a Liability Insurance Coverage Dispute

May 05, 2026 — David Adelstein - Florida Construction Legal Updates
In an insurance coverage lawsuit seeking declaratory relief, an insurer sued the third-party claimant. The insurer was seeking a declaration that there was no coverage, which naturally would impact the third-party claimant. The insured did not respond to the lawsuit and the insurer moved for a default judgment which was objected to by the third-party claimant. The trial court granted a final judgment in favor of the insurer, which prompted an appeal from the third-party claimant because the final judgment impacts its rights to coverage if it obtains a judgment against the insured. The appellate court reversed but please take a look at this Court’s discussion on the issue of an insurer adding a third-party claimant to a coverage lawsuit when then the third-party cannot pursue a direct claim against the insurer until it obtains a settlement or judgment against the insured. It presents an interesting argument and counter-point for a third-party claimant that is added to the coverage lawsuit which has implications if it obtains a judgment against the insured: This case involves an apparent anomaly in Florida law. It is well-established that third-party claimants injured by an insured’s negligence have a right as third-party beneficiaries to payment from the insured’s insurance proceeds. It is equally well-established that the third-party claimants’ rights in this regard do not accrue unless and until they obtain a verdict or settlement against the insured. A quick review of this law is helpful at this point. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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The GKN Aerospace Chemical Release and the Laws Designed to Address It

July 06, 2026 — Sean M. Sherlock - Snell & Wilmer
On May 21, 2026, a 34,000-gallon storage tank at the GKN Aerospace facility in Garden Grove, California began leaking methyl methacrylate (MMA), a volatile and highly flammable industrial chemical used to manufacture high-strength acrylic plastics. GKN Aerospace makes advanced military and commercial transparencies, such as aircraft canopies, windshields, cabin windows, bullet-resistant glass, and spacecraft windows. In polymer chemistry lingo, MMA is known as a monomer. Monomers are like individual links to a chain. Under the right conditions they link up (react) with each other to form long-chained polymers, or plastics. MMA is an unstable monomer that requires controlled storage conditions to avoid setting off a polymerization (chain) reaction. According to early reports, the MMA tank at GKN Aerospace overheated. The cause of the overheating is not yet clear, but the overheating may have created conditions enabling the MMA to initiate polymerization, which in turn generated heat, which in turn generated pressure, activating the tank’s pressure-relief system and releasing MMA vapor into the atmosphere. Concerns about a runaway reaction, massive release, and explosion led the Orange County Fire Authority to order evacuation of approximately 40,000 residents and closure of thirteen schools. Read the full story...
Reprinted courtesy of Sean M. Sherlock, Snell & Wilmer
Mr. Sherlock may be contacted at ssherlock@swlaw.com

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AIA Waivers Under Fire: Why Post-Completion Losses May Still Be Actionable

January 26, 2026 — Lian Skaf - The Subrogation Strategist
On its face, the power of a waiver of subrogation clause in a construction contract is profound. It bars otherwise actionable – and sometimes egregious – losses resulting from contractor carelessness before they can ever get started. One question courts have long battled with is the limits to the lasting effects of such a waiver. Whether the waiver power can be transferred amongst parties, applied to third parties or used with policies taken out after construction completion are among the few grey areas that have kept subrogation practitioners and the courts busy. Recently, a federal court in Idaho clarified its position on the power to waive subrogation. In Seneca Ins. Co. v. McAlvain Constr., Inc., No. 1:24-cv-00340-BLW, 2025 U.S. Dist. LEXIS 251777 (D. Idaho), the United States District Court for the District of Idaho (District Court) addressed whether a subrogation waiver in an AIA construction contract, signed between an owner and the general contractor, applied to the subsequent owner of a building. In doing so, the court looked at the limiting language of the waiver as well as the contractual posture of the subsequent owner. Ultimately, the court found the waiver inapplicable, denying the motion for summary judgment of Defendant, Cross-Plaintiff McAlvain Construction, Inc. (McAlvain). Read the full story...
Reprinted courtesy of Lian Skaf, White and Williams
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

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Data Center Construction: Contractors Must Step Up

May 26, 2026 — Aarni Heiskanen - AEC Business
I attended the Datacenter Forum 2026 in Helsinki last week. Over 400 people packed the room. Walking out, I had one overriding thought: Is construction operating in a different century from the technology it is being asked to house? Is Our Industry on Par? Ciarán Forde, Senior Vice President at CTS Nordics, opened the forum with a statement that set the tone for everything that followed: data centers are no longer just a technical challenge; they are a national strategy. Before AI, Ciarán had worked in telecoms, where data centers were already complex. But now, he said flatly, everything has changed, and the industry must rethink everything. The numbers behind the claim are staggering. Current AI data center racks run at 40 to 100 kW. In three years, 800 kW per rack is on the roadmap. And the development cycle for a new chip is roughly one year, which means deployments begin aging out almost as soon as they are commissioned. 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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Ninth Circuit Holds That Policies Covering Environmental Claims Do Not Have Aggregate Limits

May 12, 2026 — Lorelie S. Masters & Joseph T. Niczky - Hunton Insurance Recovery Blog
In the case of County of San Bernardino v. Insurance Company of the State of Pennsylvania, the Ninth Circuit recently addressed the issue of whether general liability policies issued in the 1960s and 1970s included aggregate limits for claims arising under the premises-operations coverage in CGL policies. The difference between the policyholder’s interpretation of the policies’ limits clauses and the insurer’s interpretation was worth hundreds of millions of dollars in exposure for the insurer. The Court closely examined the policy language and extrinsic evidence from both the insurance industry’s drafting history and the parties before concluding that the policies were ambiguous. The Court construed that ambiguity in favor of the policyholder and ruled that aggregate limits did not apply to the claims at issue. The Court’s decision underscores the importance of carefully examining a policy’s limits, especially for older policies written before 1986 when the insurance industry revised the standard-form CGL policy to state the aggregate limits apply not only to products liability claims but to premises-operations claims as well. Decades of insurance industry drafting history confirms, as the policyholder’s submissions in this case indicate, that the industry well understood that operations claims like the environmental waste-disposal claims at issue here typically were not subject to aggregate limits. Reprinted courtesy of Lorelie S. Masters, Hunton Andrews Kurth LLP and Joseph T. Niczky, Hunton Andrews Kurth LLP Ms. Masters may be contacted at lmasters@hunton.com Mr. Niczky may be contacted at jniczky@hunton.com Read the full story...

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On Checks and Balances

March 03, 2026 — Garret Murai - California Construction Law Blog
It’s called “checks and balances” for a reason. And, generally, it works well so long as there are clear boundaries between the “co-equal” branches of government. In Associated General Contractors of California, Inc. v. Department of Industrial Relations, 108 Cal.App.5th 243 (2025), the 3rd District Court of Appeals upheld a set of regulations issued by the California Apprenticeship Council that contradicted an earlier 2015 ruling of the Court of Appeals. The Associated General Contractors of California Case At issue in the case was California’s Prevailing Wage Law which requires public works contractors to hire a certain ratio of apprentices. The purpose of the apprenticeship requirements is to maintain the pipeline of skilled tradespeople on taxpayer-funded projects. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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