AI in AEC 2026: Doing AI Right and Rethinking Your Business Model
April 08, 2026 —
Aarni Heiskanen - AEC BusinessThe sixth AI at the AEC 2026 conference showcased the evolution of AI discussions. There were, naturally, many talks about software and technologies. But more than before, there were conversations about realizing AI’s business value.
Two themes appeared in nearly every session I attended. First, many companies struggle with AI adoption, not because they lack tools, but because their thinking isn’t right. Second, when AI works, it disrupts the business model that brought them there.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
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
On Checks and Balances
March 03, 2026 —
Garret Murai - California Construction Law BlogIt’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.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Celebrating BWB&O’s 2026 Super Lawyers Rising Stars in San Diego!
March 31, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners
Jocelyn Russo,
Christina Matian, and Associate
Angelo Perillo have been named to the Super Lawyers 2026 San Diego Rising Stars list. This recognition highlights their outstanding dedication and distinguished service in Family Law, Civil Litigation, and Personal Injury Litigation.
SUPER LAWYERS
Jocelyn Russo: 2023-2026
Christina Matian: 2024-2026
Angelo Perillo: 2024-2026
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Bremer Whyte Brown & O’Meara, LLP
Insured’s Bad Faith Claim Survives Summary Judgment
July 13, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026).
Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the deductible.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Beyond the Storm: How Non-Hurricane Catastrophes Expose Florida’s Construction Defect Blind Spot
August 11, 2026 —
Franchesco “Frank” Soto & Amanda L. Gonzalez - Ball JanikOn June 8, 2026, a magnitude 6.1 earthquake struck the Gulf near the coast of Cuba, the largest instrumentally recorded earthquake in the Gulf since seismic monitoring began in 1950. Buildings swayed, offices were evacuated, and many residents along the east coast of Florida, from Miami-Dade to Jacksonville, felt the ground shake. Although no tsunami followed and reported structural damage was limited, this event exposed a blind spot that Florida property owners, developers, and their counsel cannot afford to ignore: catastrophic stress on Florida buildings does not always come in the form of a named storm.
Florida property owners have grown accustomed to preparing for wind, storm surge, floods, and torrential rain. Far less attention is paid to earthquakes, sinkholes, tornadoes, hail, and non-tropical flooding, each of which can place unexpected stress on buildings not designed with those forces top of mind and can trigger deficiencies in buildings that were not otherwise known, expose design failures, and create an urgency for both insurance claims and subsequent litigation.
Non-Hurricane Triggers of Latent Defects
Seismic activity is the clearest example. Florida’s building code accounts for wind loads, not seismic forces, meaning even a moderate earthquake can reveal weaknesses in curtain wall systems, structural connections, or foundations that were already marginal. Sinkholes, driven by Florida’s karst limestone geology, remain a persistent threat, particularly in Central Florida, where subsurface voids can undermine foundations without warning. Non-tropical flooding, like the record rainfall that flooded South Florida in June 2024, can intrude through building envelopes and waterproofing systems that were never stress-tested for such volumes of water. Tornadoes and hail, while more localized, can cause roofing and envelope failures that mimic, mask, or trigger latent construction defects.
The Litigation and Coverage Disputes That Follow
When one of these events strikes a building already carrying undisclosed or unresolved construction defects, the resulting disputes become considerably more complex. Property owners and associations must move quickly to document existing conditions and distinguish damage caused by the event from pre-existing defective construction, the same causation issue that arises in the hurricane context under Chapter 558, but often without the benefit of established precedent or adjuster experience with these less common events.
Insurance coverage disputes frequently follow close behind. Carriers may dispute whether an earthquake, flood, or other peril is covered at all, particularly where policies contain earthquake or flood exclusions requiring separate endorsements, or anti-concurrent causation language that can bar coverage entirely when a covered peril combines with an uncovered one, such as pre-existing defective construction, to cause a loss. Sinkhole claims carry their own statutory framework under Florida law, requiring specific testing protocols and reporting before a claim is compensable. Developers and contractors, in turn, may find themselves defending Chapter 558 claims while simultaneously litigating with their own carriers over defense and indemnity obligations.
Practical Risk Mitigation Strategies
Property owners, associations, and developers can take several concrete steps to reduce their exposure. First, maintain thorough documentation, including engineering reports, maintenance logs, and photographs, well before any event occurs. This documentation is often the deciding factor in causation disputes. Second, engage structural engineers and consultants immediately following any seismic event, unusual flooding, or storm damage, regardless of whether a hurricane is involved. Prompt inspection preserves evidence and can help prevent inadvertent waiver of construction defect claims. Third, review insurance policies regularly with counsel or a broker to confirm earthquake, flood, and sinkhole coverage matches the property’s actual risk profile, rather than assuming a standard property policy responds to every peril. Fourth, avoid rushing to remediate before conditions are documented and/or before consulting counsel. Well-intentioned repairs can inadvertently compromise evidence needed to prove a defect claim.
The June earthquake was a reminder that Florida’s catastrophic risk profile extends beyond hurricane season. Property owners, associations, and developers who build readiness plans around all forms of catastrophic stress, not just named storms, will be far better positioned when the next unexpected event occurs.
Franchesco “Frank” Soto is a partner in
Ball Janik’s Construction Defect Practice Group in Miami. He may be reached at fsoto@balljanik.com.
Amanda L. Gonzalez is a litigation attorney in
Ball Janik’s Construction Defect Practice Group in Miami. She may be reached at agonzalez@balljanik.com.
GRSM Attorneys Named Finalists in 2026 Women, Influence & Power in Law Awards
March 10, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani attorneys have been shortlisted as finalists for Corporate Counsel’s 2026 Women, Influence & Power in Law (WIPL) Awards, which honor women leaders who have demonstrated a commitment to advancing the empowerment of women in the legal profession.
In the Law Firm Internal Collaborative Leadership category, Stephanie Jones was recognized for her exceptional ability to foster collaboration, mentor talent, and align colleagues across GRSM. Jones has consistently demonstrated leadership rooted in trust, inclusion, and shared purpose, qualities that have strengthened the firm during a period of extraordinary growth. Her impact on the firm’s culture and success will continue as she steps into her role as Chief Operating Partner in June 2026, where she will further build on her leadership in fostering teamwork, mentorship, and alignment across the firm’s national platform.
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Gordon Rees Scully Mansukhani
Managing Tariff Volatility in Cross‑Border U.S. Construction Projects: Practical Contract‑Drafting and Procurement Strategies
March 10, 2026 —
Sara Beiro Farabow & Michael Wagner - The Construction SeytVolatile U.S. tariff announcements continue to affect international supply chains for U.S. construction projects. Although recent litigation has centered on the scope of presidential tariff authority rather than construction‑specific disputes, these decisions carry important implications for how parties structure risk in their contracts. In May 2025, the U.S. Court of International Trade (CIT) struck down certain “Liberation Day” tariffs as exceeding presidential authority under IEEPA. A federal district court in Washington, D.C. likewise issued a preliminary injunction suspending related tariffs—though it later stayed its own order pending appeal. And the Supreme Court has agreed to review cases addressing the legal limits of IEEPA‑based tariffs.
While none of these developments arises from construction disputes, the themes they highlight—timing, statutory authority, and documentation—mirror the issues encountered when tariff conditions disrupt international procurement. The following strategies reflect practical steps U.S. project owners, contractors, and foreign suppliers can take to mitigate risk, drawing on drafting approaches now widely used across major construction forms, including—but not limited to—modified AIA agreements.
Reprinted courtesy of
Sara Beiro Farabow, Seyfarth Shaw LLP and
Michael Wagner, Seyfarth Shaw LLP
Ms. Farabow may be contacted at sfarabow@seyfarth.com
Mr. Wagner may be contacted at mewagner@seyfarth.com
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