A Permitting Base Checklist for Data Centers and Power Plants
June 02, 2026 —
Michael S. McDonough, Stephen J. Humes & Stacey C. Wright - Gravel2Gavel Construction & Real Estate Law BlogThere is a lot of talk these days about “license to operate” for data centers, meaning management of the relationships with stakeholders and broader communities concerning both the benefits and adverse consequences of locating a facility in a particular locale. Here, we are speaking of “license to operate” more literally—namely, the legal and regulatory permitting and approval requirements for a privately owned data center whether by itself or colocated with a power generating plant.
Our Base Checklist includes generally and potentially applicable permitting requirements for development and operation, using California as an example. (Taking legal authority Frank Sinatra out of context, “If you can make it there, you can make it anywhere.”) The actual requirements for a given facility would depend, in part, on local law, including planning and zoning laws and plans, and the environment of the site. Just as examples, additional permitting and mitigation requirements might apply if sensitive receptors are located nearby (e.g., noise mitigation for residential dwellings), if sensitive and protected biological resources (e.g., jurisdictional waters and/or protected species) would be impacted, or if the present or former land uses require additional measures (e.g., hazardous materials remediation, mitigation for conversion of prime farmland, or protection of cultural resources). The scope of permit requirements would ultimately be determined by the applicable regulatory agencies and by the lead and responsible agencies under the applicable state environmental land use regime—in our reference case here, the California Environmental Quality Act (CEQA).
Reprinted courtesy of
Michael S. McDonough, Pillsbury,
Stephen J. Humes, Pillsbury and
Stacey C. Wright, Pillsbury
Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. Wright may be contacted at stephen.humes@pillsburylaw.com
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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 BlogIn 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
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Supply Chain Is a Legal Exposure—Not Just a Force Majeure Problem
September 08, 2026 —
Owen Newman - Construction ExecutiveThis is not another force majeure article. The supply-chain related legal exposure that contractors are carrying today—in sanctions risk, specification non-compliance, warranty exposure and regulatory volatility—extends well beyond what even a well-drafted force majeure clause protects.
An engineering, procurement and construction contractor on a gas-fired power plant discovers during commissioning that transformer oil in a critical unit contains Russian-origin naphthenic base oil, which is a prohibited source under Office of Foreign Assets Control sanctions. The contractor didn’t source it. A subsupplier two tiers below made the substitution when disruptions in the Strait of Hormuz tightened the primary supply chain for this specialty product and no one in the purchase-order chain flagged it. The procurement decision is long done and the documentation trail that should have caught it doesn’t exist.
Reprinted courtesy of
Owen Newman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Mr. Newman may be contacted at
oknewman@duanemorris.com
Colorado Court Affirms Attorneys’ Fee Award Against Plaintiff’s Counsel for Pursuing Unsupported CCPA Claims
August 03, 2026 —
David McLain - Colorado Construction Litigation BlogThe Colorado Court of Appeals recently affirmed a trial court’s award of more than $241,000 in attorney fees against a plaintiffs’ attorney who continued to pursue unsupported claims arising out of a residential construction dispute. Although the opinion was not selected for official publication under C.A.R. 35(e) and therefore has no precedential value, it nevertheless provides an instructive reminder that Colorado courts are willing to impose significant financial consequences when claims lack substantial justification.
For builders, developers, contractors, insurers, and defense counsel, the case is worth reading, not because it announces new law, but because it demonstrates that Colorado’s fee-shifting statute remains a meaningful tool when unsupported claims continue long after they should have been abandoned.
Read the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
OC Streetcar Project Mediation Sets $50M Payment to Walsh
July 20, 2026 —
Richard Korman - Engineering News-RecordWalsh Construction told a California state court judge last month that lawsuit mediation of its claims on an Orange County light-rail project—known as OC Streetcar—had produced a settlement of some claims under which the county agreed to pay the contractor almost an additional $50 million.
Read the full story...Reprinted courtesy of
Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
Your AI Tool Could Be Your Next Breach of Contract
October 20, 2026 —
Laurie Choi & Christian Fernandez - Snell & WilmerLike many industries, the construction industry is rapidly adopting artificial intelligence. AI-powered tools now help construction teams estimate costs, transcribe meetings, summarize RFIs, model schedules, and manage project documents faster than ever before. But amid this rush toward efficiency, a serious risk hides in plain sight: every time project documents are uploaded into a third-party AI tool, contractual confidentiality obligations may be implicated — or outright breached — exposing companies to potentially substantial and uncapped liability.
General contractors often face strict confidentiality and nondisclosure obligations, whether under the prime construction contract or a separate NDA. This is especially true for complex projects or those involving proprietary technology — such as data centers, medical or scientific facilities, and energy generation and storage facilities. These confidentiality clauses typically define “confidential information” broadly to encompass all non-public information provided for the project, including plans, specifications, pricing, schedules, RFPs, and even the contract terms themselves. These confidentiality obligations almost always flow down to subcontractors.
Reprinted courtesy of
Laurie Choi, Snell & Wilmer and
Christian Fernandez, Snell & Wilmer
Ms. Choi may be contacted at lchoi@swlaw.com
Mr. Fernandez may be contacted at cfernandez@swlaw.com
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Executive Insights 2026: Leaders in Construction Law
October 06, 2026 —
Construction ExecutiveWhat advice would you give contractors regarding documentation and recordkeeping to better protect themselves during disputes?
Jim Archibald
Partner
Bradley Arant Boult Cummings LLP
Disputes over payment, scope and delays are among the biggest risks contractors face. Thorough documentation doesn’t just help win these disputes; it may prevent them from happening at all.
Start with the contract: Every project should begin with a written agreement that clearly defines scope, schedule, payment terms and change-order procedures. Verbal understandings are difficult to enforce.
Track changes in real time: Change orders, change directives, RFIs and scope clarifications should always be documented in writing.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Celebrating Freedom: The Overlooked Freedom to Contract in Commercial Insurance
July 20, 2026 —
Michael S. Levine & Andrea DeField - Hunton Insurance Recovery BlogHappy 4th and 250 years of freedom . . . to contract!
Many policyholders assume insurance policies are “standard” and must be accepted as-is. That assumption is often wrong—and dangerously limiting. Unlike many consumer insurance markets, the commercial insurance realm preserves a robust “freedom to contract,” allowing sophisticated policyholders to negotiate terms, exclusions, definitions, and limits before a policy is even issued. Particularly in recent years, high-profile disputes over cyber coverage, business interruption, and war/cyber exclusions have shown not just what happens when coverage is denied, but what could have been done up front to avoid those fights.
This post highlights the power policyholders still hold in the negotiation process and illustrates, with concrete examples from recent media-covered disputes, how that freedom can be strategically used.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth LLP and
Andrea DeField, Hunton Andrews Kurth LLP
Mr. Levine may be contacted at mlevine@hunton.com
Ms. DeField may be contacted at adefield@hunton.com
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