Texas Court Revives Construction Defect Claims: Key Lessons for Managing Latent Defect Risk
January 21, 2026 —
Spencer E. Dunn & Melissa Osio Martinez - Wood Smith Henning BermanConstruction projects often involve intricate designs, multiple stakeholders, and complex performance obligations. When problems surface years after completion, parties must navigate a difficult landscape that blends contract law, tort doctrines, and statutory deadlines. A recent decision from the Fourth Court of Appeals of Texas provides meaningful guidance on how courts will evaluate latent construction defect claims, the applicability of the discovery rule, and the limits of the economic loss doctrine. In Morningside Ministries v. Koontz McCombs Construction, Ltd., the court reversed summary judgment entered in favor of the general contractor and project manager, reviving the owner's claims and offering important lessons for owners, contractors, and insurers facing construction defect disputes.
Background of the Dispute
Morningside Ministries operates senior living communities across Texas. In 2012, It contracted with Koontz McCombs Construction, Ltd. (Koontz) to construct The Overlook, a significant expansion of Morningside's Menger Springs campus in Boerne. The contract required Koontz to build 100 new senior living units along with common areas and site improvements, and placed responsibility for construction quality, including the work of subcontractors, on Koontz.
Reprinted courtesy of
Spencer E. Dunn, Wood Smith Henning Berman and
Melissa Osio Martinez, Wood Smith Henning Berman
Mr. Dunn may be contacted at sdunn@wshblaw.com
Ms. Martinez may be contacted at mosiomartinez@wshblaw.com
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NJ Public Works Contractors Beware – Pay Special Attention When Submitting Your Public Works Contractor Registration
May 26, 2026 —
Levi W. Barrett & Aaron C. Schlesinger - Peckar & Abramson, P.C.While it is always important to be careful when making submissions to government agencies, recent activity by the New Jersey Department of Labor and Workforce Development (“NJDOL”) reveals considerably increased scrutiny in connection with contractors renewing their New Jersey Public Works Registration. Extra care when completing the registration renewal process is warranted, because the consequences of a misstep can be significant and disruptive.
The New Jersey Public Works Contractor Registration Act requires all contractors bidding on or engaging in construction-related public works projects to register with the NJDOL. This registration, which must be resubmitted every 1-2 years, requires contractors to make a number of detailed disclosures relating to, among other things, the entity’s ownership structure, prior state and federal labor law violations, details regarding interests in other businesses, unlawful acts by owners/officers, and participation in apprenticeship programs.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C. and
Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
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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
Court Ends Trump Shutdown of NY's $5B Empire Wind, Second Offshore Project Revived
February 17, 2026 —
Debra K. Rubin - Engineering News-RecordIn a much-anticipated decision Jan. 15, the federal district court in Washington, D.C., revoked a construction shutdown ordered by the Trump administration against another major East Coast offshore wind project—the $5-billion Empire Wind underway south of New York City. The project's developer, Norway-based Equinor, won a stay and preliminary injunction in response to its lawsuit and one from the state, which aims to direct most of the project's planned 810 MW of power generation to the city's metro area.
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Debra K. Rubin, Engineering News-RecordMs. Rubin may be contacted at
rubind@enr.com
Cross-Office Team Secures Litigation Stay and Order of Arbitration on Behalf of Hotel Developer
February 17, 2026 —
Lewis Brisbois NewsroomNew York Partner Minyao Wang, Chicago Partner Bryan Sugar, and Denver/Washington, D.C. Partner Christopher Wood secured a victory on behalf of Lewis Brisbois’ client, a hotel developer, when the Circuit Court of Cook County, Illinois granted the client’s motion to dismiss and ordered the parties to proceed to arbitration.
In this matter, the 39 plaintiffs, represented by a New York based law firm that focuses on EB-5 litigation against high-end real estate developers, were foreign nationals living in China or Taiwan who were seeking EB-5 visas and invested in a lending company. The lending company loaned money to entities that were managing a project that involved renovating a hotel and constructing a mixed-use tower in downtown Chicago. Disputes developed among the parties. The foreign investors organized informally and ultimately filed suit against Lewis Brisbois’ client, alleging claims of breach of fiduciary duty, breach of contract, conversion, and conspiracy, as well as aiding and abetting conversion. The defendants faced exposure of at least $20 million.
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Lewis Brisbois
Legal 500 US Ranks Hunton’s Insurance Coverage Team Among Top Policyholder Practices in 2026 Guide
July 06, 2026 —
Hunton Insurance Recovery BlogHunton’s insurance coverage practice was once again recognized among the nation’s top policyholder insurance practices, receiving a Band 2 national ranking in the 2026 United States Edition of The Legal 500 for Insurance: Advice to Policyholders. The Legal 500 recognizes firms solely based on merit through numerous factors including client feedback and peer input.
Bolstering the team’s national recognition, several coverage lawyers received individual accolades: special counsel
Lorelie “Lorie” S. Masters was named to The Legal 500’s Hall of Fame; team head
Syed S. Ahmad and partner
Michael S. Levine were named Leading Lawyers; and partners
Andrea DeField and
Latosha M. Ellis were named Next Generation Partners. In addition, partners
Walter J. Andrews,
Lawrence J. Bracken II, and
Koorosh “KT” Talieh were recognized as Key Lawyers on the team.
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Hunton Andrews Kurth LLP
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
Alert: Fraudulent Notice of Nonpayment Defense Applies to Payment Bond Claims
April 27, 2026 —
David Adelstein - Florida Construction Legal UpdatesUnder Florida’s Lien Law, there’s an affirmative defense or affirmative claim known as a “
fraudulent lien.” The fraudulent lien defense or claim is set out in Florida Statute s. 713.31. This defense also extends to payment bond claims, whether under a private statutory payment bond (Florida Statute s. 713.23) or a public payment bond (Florida Statute s. 255.05), as it pertains to the notice of nonpayment. A notice of nonpayment needs to be served within 90 days from final furnishing to preserve a claimant’s rights against the bond. However, there really has not been a case, until now, that discusses a “fraudulent notice of nonpayment.”
In K&M Electric Supply, Inc. v. Brown Electrical Solutions, LLC, 51 Fla.L.Weekly D672a (Fla. 4th DCA 2026), a prime contractor and surety prevailed at the trial level on their fraudulent notice of nonpayment defense based on a supplier’s notice of nonpayment and action against a public payment bond (under Florida Statute s. 255.05).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
