Bad Faith Claim Dismissed as Insurer’s Actions Found Reasonable
December 08, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe insured’s bad faith claims failed as the court found that the insurer’s handling of the claim was reasonable. Terrazas v. State Farm Lloyds, 2025 U.S. Dist. LEXIS 201925 (W.D. Tex. Oct. 20. 2025).
Plaintiff filed a claim with State Farm when her home suffered hail damage. Claims Specialist Denice Gomez was assigned to inspect, but she was unable to access the roof. She inspected the interior of the home and found water damage and observed hail damage on the garage doors. Ms. Gomez retained SeekNow to complete the roof inspection.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Don’t Breach Your Contract, but If You Do, Don’t Breach First
December 22, 2025 —
Christopher G. Hill - Construction Law MusingsWell, it’s been a while since my last post here at
Musings due to travel, work, Thanksgiving, etc. so I thought I’d let a recent case remind us all that while breaching a construction contract is bad, doing it first is even worse. This is the so called “doctrine of first breach” that basically states that if both parties are in breach (or even just one), then the first to breach is the one that will bear the costs of breach. The doctrine also states that the one first to breach first can’t enforce any of its rights going forward.
The plaintiff in
SEG Props. LLC v. NTC Mazzuca Constr.,Inc., the Virginia Court of Appeals considered a first breach scenario that was pretty extreme. The basic facts are as follows:
SEG hired Mazzuca to build a private shooting range and hired a property manager (Jones, Lang, LaSalle, Inc. (“JLL”)) as its project representative. Per the contract, if Mazzuca provided a payment application on or before the 25th of the month, payment was due by the 25th of the following month. In no event was payment to be made more than 30 days from receipt of the payment application by the owner’s representative. Even where there was a dispute, the undisputed amounts were to be paid. Mazzuca and JLL used a so called “pencil” method for payment applications that involved JLL reviewing the payment applications for errors and then a final payment application with the corrections being sent to the Architect. Needless to say there were change orders and disputes, but after the smoke cleared, it was obvious that from the first payment application, SEG had failed to make timely payment (for the whole saga, please read the case as it is too long for this post). Later, SEG terminated Mazzuca for cause upon one day’s notice that SEG would be supplementing Mazzuca’s workforce.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Construction and Design Contracts—They Are More Important Than You Might Think! (Law Note)
January 26, 2026 —
Melissa Dewey Brumback - Construction Law in North CarolinaAs regular readers of this Blog know, contracts are extremely important for all parties involved in a construction project. While
verbal contracts can be enforced, a
written contract, which is finely-tuned to your specific project, can save you a lot of time and money later on if the proverbial poo hits the fan.
I recently read AIA’s take on contracts, in their Construction Risk Brief (which you should
subscribe to [free] if you have not already). Their featured article is on “
Best Practices for Construction Contracts”. In the piece, they discuss 7 key points to address in each contract. I concur for the most part, although want to point out that some of them (such as the regular monitoring and
documentation bullet point) are deserving of their own post, as there is a *lot* that can and does go wrong during the
construction administration phase.
Read the full story...Reprinted courtesy of
Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Seattle’s Residential Zoning Transformation: What Property Owners, Buyers, and Investors Should Understand
May 14, 2026 —
Lawrence S. Glosser - Ahlers Cressman & Sleight PLLCSeattle is in the midst of a significant transformation in residential land use policy. Longstanding neighborhood zoning patterns that historically favored detached single-family development are being reexamined in response to housing supply pressures, affordability concerns, and evolving state mandates.
For homeowners, purchasers, investors, and builders, these changes may create substantial new opportunities. They also create a heightened need for careful legal and practical due diligence.
While zoning reform can expand potential uses of property, it does not eliminate the many other constraints that may still govern what can actually be built.
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Lawrence S. Glosser, Ahlers Cressman & Sleight PLLCMr. Glosser may be contacted at
larry.glosser@acslawyers.com
Don’t Hire Me! (Principle Is Expensive, and Lawsuits Based on Principle Are Even More Expensive)
February 10, 2026 —
Melissa Dewey Brumback - Construction Law in North CarolinaI spend a lot of time trying to convince my clients to NOT hire me. I’m not crazy—let me explain. Litigation is costly. Very costly. And it is time consuming. Don’t get me wrong—I will go to Court and fight just as hard as you want me to, but I want you to know what you are facing before you go down that road.
Now, obviously, if you are the one that is being sued, you have no choice but to defend yourself and your Firm. But if you are considering suing someone else, think long and hard about it before you pull the trigger. There are ways to reduce cost, time, and risk: for example, pre-suit or early mediation, or agreeing to arbitration in lieu of trial. But I always want my clients to know that real law is not like Law & Order. Things take time. A trial is often a year or more away from when you first file the lawsuit. Make your decisions on not just your heart, but your economic brain as well.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
U.S. Supreme Court Decision May Negate State Law Requirement to File a Certificate of Merit with the Complaint in a Federal Action Against a Design Professional
April 27, 2026 —
Christopher Olsen & Phillip Boldt - ConsensusDocsTo deter frivolous and unfounded claims against design professionals, states throughout the country have enacted statutes which generally require litigants to furnish a formal certification of merit (“COM”) from a qualified expert or face potential dismissal of their lawsuit. These COM statutes can impose a significant front-end burden on claimants who must pay an expert to review project records, interview the project team, and prepare a formal report before the lawsuit can be filed—often regardless of the amount in controversy. However, in light of a recent U.S. Supreme Court decision in a medical malpractice case, most, if not all of these statutes, may no longer be enforceable in federal court. This article examines the recent decision in Berk v. Choy, 146 S. Ct. 546 (2026), the decisions thus far which have applied Berk to invalidate COM statutes, and other categories of statutes applicable to the construction industry which may face a similar fate.
The U.S. Supreme Court Decision (Berk v. Choy)
In Berk, the plaintiff, Harold Berk, sued a doctor for medical malpractice under Delaware law in Delaware federal court. 146 S. Ct. at 551. Under Del. Code, Tit. 18, § 6853(a)(1), an affidavit of merit (like a COM) must accompany a complaint alleging medical malpractice. Id. Berk failed to include an affidavit of merit with his complaint. Id. at 552. Applying Delaware state law, the federal court dismissed Berk’s medical malpractice claim. Berk appealed to the Third Circuit, arguing that the affidavit of merit required by § 6853(a)(1) is unenforceable in federal court because it is more onerous than the Federal Rules of Civil Procedure. The Third Circuit affirmed the District Court’s ruling, finding § 6853(a)(1) enforceable in federal court.
Reprinted courtesy of
Christopher Olsen, Peckar & Abramson, P.C. and
Phillip Boldt, Peckar & Abramson, P.C.
Mr. Olsen may be contacted at colsen@pecklaw.com
Mr. Boldt may be contacted at pboldt@pecklaw.com
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Contract Interpretation – Determining What the Contract Requires
March 24, 2026 —
David Adelstein - Florida Construction Legal UpdatesA good ole dispute on contract interpretation in government contracting. Contract interpretation disputes happen all the time in every jurisdiction under the sun. Think about that. Now, what’s the best way to avoid a contract interpretation dispute? Naturally, invest in the contract language and fully understand the scope of work. Make all of this clear. But, of course, this isn’t foolproof meaning you could still be doing this and you could still find yourself in a contract interpretation dispute. Although, if you are doing this, and being proactive, the contract interpretation disputes should be minimal and more streamlined.
In Liberty Technical Services, LLC v. Department of Veterans Affairs, CBCA 8385, 2026 WL 407656 (CBCA 2026), the dispute centered on whether the government owed the contractor for certain, necessary equipment (largely controllers, but also tanks and pumps) not specified in the contract. The government countered that this should be a non-issue because the contractor always acknowledged it was responsible for furnishing the unspecified, necessary equipment, and the contractor did actually provide the equipment without direction from the government. Each party claimed the contract was unambiguous when construed in context.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
New Year’s Resolution: Engineering the “Tee-Up Day” for Complex Construction Mediations
February 17, 2026 —
Joël Bertet - The Dispute ResolverThe construction industry is defined by its commitment to "Critical Path" scheduling. From the moment a project breaks ground, every stakeholder—from the MEP sub to the owner’s rep—is focused on sequencing. We know that you cannot hang drywall before the rough-in is inspected, and you cannot pour a slab-on-grade until the vapor barrier is verified.
Yet, when these projects devolve into litigation, the legal community often abandons the logic of sequencing. We rush headlong into "The Mediation Day"—a high-stakes, expensive, one-day marathon where we expect dozens of parties, hundreds of insurance layers, and thousands of pages of expert reports to magically align into a settlement by 6:00 PM.
As we open our calendars for the new year, it is time for a professional resolution. We must stop treating mediation as a single-day event and start treating it as a managed, sequenced process. The centerpiece of this resolution is the “Tee-Up Day.”
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Joël Bertet, ResolveBertetMr. Bertet may be contacted at
joel@resolvebertet.com