Real Estate & Construction News Roundup (3/18/25) – Data Center Frenzy, China’s Expanding REIT Market and Tariff-Affected Construction Costs
March 31, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, relistings reached highest total in a decade, Florida State Legislature passes bill to increase the state’s housing supply, data center construction adapts to changes and more!
- The data center construction frenzy and a new, potentially larger highway bill were top of mind for builders during the latest round of contractor earnings calls and financial reports. (Joe Bousquin, Construction Dive)
- Tariffs and associated policy uncertainty have increased construction costs and delayed leasing and investment choices. (J.P. Morgan)
- Relistings hit the highest January figure since Redfin began tracking this metric a decade ago. (Diana Olick, CNBC).
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Pillsbury's Construction & Real Estate Law Team
Traub Lieberman Attorneys Recognized as 2026 Illinois Super Lawyers® and Rising Stars
February 02, 2026 —
Traub LiebermanTraub Lieberman is pleased to announce that two Partners from the Chicago, IL office have been selected to the 2026 Illinois Super Lawyers list. In addition, two Associates have been named to the 2026 Super Lawyers Rising Stars list.
2026 Illinois Super Lawyers
- Brian Bassett – Insurance Coverage
- Dana Rice – Insurance Coverage
2026 Super Lawyers Rising Stars
- Timothy Crane – Insurance Coverage
- Anthony Morelli – Civil Litigation
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Traub Lieberman
Seventh Circuit, With an Assist From the Illinois Supreme Court, Finds That “Pollution Exclusion” Bars Coverage For Emissions Allowed Under Regulatory Permit
April 20, 2026 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Griffith Foods Int’l Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 24-1217 & 24-1223 (7th Cir. Mar. 13, 2026), the Seventh Circuit addressed the meaning and scope of a pollution exclusion in a standard-form commercial general liability insurance policy for underlying injuries caused by ethylene oxide (EtO) emissions. The insurance dispute arose out of underlying tort litigation involving bodily injury claims, including cancer, allegedly caused by emissions of ethylene oxide over a 35-year period from 1984 through 2019 by Griffith Foods International and later Sterigenics U.S. The pollution exclusion at issue generally barred coverage for “bodily injury” arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, or other irritants, contaminants or pollutants.
Interpreting similar exclusions, the Illinois Supreme Court has previously held that the standard CGL pollution exclusion bars coverage for bodily injuries caused by traditional environmental pollution (essentially industrial emissions of pollutants), but not by more commonplace emissions (such as carbon monoxide from a residential furnace or excess chlorine in a backyard swimming pool). See American States Insurance Co. v. Koloms, 177 Ill. 2d 473 (Ill. 1997). In Griffith Foods, the District Court initially concluded that the pollution exclusion did not apply because the companies emitted EtO pursuant to a permit issued by the IEPA. The District Court reached this latter conclusion by applying Erie Insurance Exchange v. Imperial Marble Corp., 957 N.E.2d 1214 (Ill. App. Ct. 2011), an Illinois intermediate appellate court decision finding it ambiguous whether a CGL policy’s pollution exclusion barred coverage for emissions authorized by regulatory permit.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Brandy Price, Dean Pillarella Named to Lawdragon's "Next Generation" List
June 22, 2026 —
Lewis BrisboisCharlotte/North Charleston Partner Brandy G. Price and New York Partner Dean Pillarella have been selected to "The 2026 Lawdragon 500 X – The Next Generation," which recognizes emerging leaders in law.
Lawdragon's annual Next Generation listing highlights up-and-coming attorneys with fewer than 15 years in practice. The legal media company selected these honorees through a combination of peer nominations, extensive journalistic research by Lawdragon editors, and independent vetting.
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Lewis Brisbois
Bad Faith Claim Survives Summary Judgment
June 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer’s motion for partial summary judgment on the insured’s bad faith claim, but granted the motion on the insured’s claim for punitive damages. Serbian Orthodox Church v. Brotherhood Mut. Ins. Co., 2026 U.S. Dist. LEXIS 58234 (S.D. Cal. March 19, 2026).
On February 1, 2023, the Church filed a claim for water damage with Brotherhood Mutual Insurance Company (BMIC). The claim was based on rain and wind that caused extensive water intrusion into the Sanctuary, damaging its plaster walls and ceilings and fresco paintings. The claim was assigned to Patrick Hurley. Hurley sent a letter discussing potential bars to coverage and requesting further information and documents from the Church.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Yet Another Reason That Your Contract Matters
February 10, 2026 —
Christopher G. Hill - Construction Law MusingsI have discussed on several occasions the fact that
construction contracts matter. The words in contracts matter and, in Virginia (as well as other states), most provisions, if not all
will be enforced to the letter. Recently, the Western District of Virginia federal court ruled in a way that reminded me of another reason for a well-drafted contract.
In
Rockingham Precast, Inc. v. American Infrastructure – Maryland, Inc. the Western District of Virginia Court considered a motion to transfer the venue to Maryland filed by American Infrastructure. The plaintiff, Rockingham Precast, a Virginia-based company sued in Virginia. American Infrastructure conceded that VA could be a proper forum for the lawsuit but argued that the form was much too inconvenient and costly for the party and non-party witnesses and that the cost made the forum an unfair place to try the case.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
Civil Megaprojects: The Evolving Use of Dispute Prevention and Collaborative Delivery Methods in Public Contracting
January 13, 2026 —
Lisa D. Love - The Dispute ResolverCivil megaprojects are large, complex ventures in civil engineering and construction that typically cost over $1 billion to construct. These projects generally have significant and long-lasting impacts on the economy, environment and society, and involve multiple public and private stakeholders. Typical civil megaprojects include infrastructure projects, such as highways, bridges, tunnels, airports, dams, power plants and public buildings, which require extensive planning, design, coordination and construction over an extended period of time.
In the United States, there is over $500 billion worth of civil megaprojects in the pipeline, with an average of four megaprojects per month in 2024 and a total monthly value of $9.2 billion.[i] Here are some recent examples of civil megaprojects:
The Hudson Tunnel Project (a portion of the Gateway Program), under construction in the states of New York and New Jersey, involves the construction of two new tunnels and the renovation of aging rail tunnels used by Amtrak and New Jersey Transit that were damaged by Superstorm Sandy along the Northeast Corridor. This has been deemed one of the most important infrastructure projects in the country. It is projected to be completed in 2027 at a cost of over $16 billion.[ii]
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Lisa D. Love, JAMS
