Anomaly in Adding a Third-Party Claimant to a Liability Insurance Coverage Dispute
May 05, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn an insurance coverage lawsuit seeking declaratory relief, an insurer sued the third-party claimant. The insurer was seeking a declaration that there was no coverage, which naturally would impact the third-party claimant. The insured did not respond to the lawsuit and the insurer moved for a default judgment which was objected to by the third-party claimant. The trial court granted a final judgment in favor of the insurer, which prompted an appeal from the third-party claimant because the final judgment impacts its rights to coverage if it obtains a judgment against the insured.
The appellate court reversed but please take a look at this Court’s discussion on the issue of an insurer adding a third-party claimant to a coverage lawsuit when then the third-party cannot pursue a direct claim against the insurer until it obtains a settlement or judgment against the insured. It presents an interesting argument and counter-point for a third-party claimant that is added to the coverage lawsuit which has implications if it obtains a judgment against the insured:
This case involves an apparent anomaly in Florida law. It is well-established that third-party claimants injured by an insured’s negligence have a right as third-party beneficiaries to payment from the insured’s insurance proceeds. It is equally well-established that the third-party claimants’ rights in this regard do not accrue unless and until they obtain a verdict or settlement against the insured. A quick review of this law is helpful at this point.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
GRSM Secures Illinois Appellate Victory for Architectural Firm in Implied Warranty Dispute
May 14, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Partner Jonathan Federman, Partner Thomas Cronin, and Senior Counsel Garrett Lee recently secured a victory in the Illinois Appellate Court, Fifth District, on behalf of the firm’s client, an architectural firm, in a liability dispute.
The case arose following an entity’s purchase of a 111-unit building for use as an investment or rental property. The plaintiff made claims against the architect of the building, alleging that there were design defects that breached an implied warranty, as well as a negligence claim.
GRSM argued that an architect could not be liable for implied warranties, particularly for an implied warranty which no Illinois court has ever recognized. GRSM further argued that Illinois law bars an architect from liability for negligence arising from a duty pursuant to contract under the economic loss doctrine.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
New Executive Order on AI Innovation and Security: Key Takeaways for the Construction Industry
June 15, 2026 —
Richard R. Volack & Denis Serkin - Peckar & Abramson, PCOn June 2, 2026, President Trump signed an Executive Order titled “Promoting Advanced Artificial Intelligence Innovation and Security.” At its core, the Order is a cybersecurity and national-security measure rather than a broad regulation of how private companies develop or use AI. It directs federal agencies to harden government systems against AI-enabled cyber threats, establishes voluntary frameworks for collaboration between the federal government and the AI and critical-infrastructure sectors, and strengthens criminal enforcement against the malicious use of AI.
Notably, the Order expressly disclaims any intent to create a “mandatory governmental licensing, preclearance, or permitting” regime for the “development, publication, release, or distribution of new AI models.” Instead, the Executive Order seeks to “promote AI innovation and security” by working with the private sector to modernize government and private-sector information systems and harden them against external threats, protect intellectual property from exploitation or theft, and cultivate American AI capabilities.
Reprinted courtesy of
Richard R. Volack, Peckar & Abramson, PC and
Denis Serkin, Peckar & Abramson, PC
Mr. Volack may be contacted at rvolack@pecklaw.com
Mr. Serkin may be contacted at dserkin@pecklaw.com
Read the full story...
Fourth Circuit Extends Coverage to Contractor
May 14, 2026 —
Hunton Insurance Recovery BlogThe Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured.
Read the full story...Reprinted courtesy of
Hunton Andrews Kurth LLP
Not All Warranty E-Mails Are Notices of Claim
October 20, 2026 —
David McLain - Colorado Construction Litigation BlogThere is a frustrating tendency in some Colorado construction defect litigation to treat virtually any written complaint about construction work as a statutory notice of claim under the Construction Defect Action Reform Act (“CDARA”). An e-mail complaining about cracked concrete. A request for warranty service. A message asking a builder to come inspect a leaking window. Years later, when the homeowner faces a statute-of-limitations defense, these routine communications are suddenly characterized as statutory notices of claim, with the convenient consequence that an otherwise untimely lawsuit becomes timely.
Enough is enough.
A warranty complaint is not a statutory notice of claim simply because a homeowner complains about construction. Courts and arbitrators should stop treating the two as interchangeable.
Read the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
EPA Steps Back, Arizona Moves Forward
May 12, 2026 —
Patrick J. Paul, John Habib & Sukhmani K. Singh - Snell & WilmerIn a significant development for Arizona’s business community and environmental policymakers, the U.S. Environmental Protection Agency (EPA) has paused its planned reclassification of Maricopa County from “Moderate” to “Serious” ozone nonattainment status pursuant to the Clean Air Act’s National Ambient Air Quality Standards (NAAQS).
This decision marks a shift in federal air policy — one that recognizes the unique challenges faced by regions like metro Phoenix, where environmental conditions beyond local control are often key contributors to air quality readings.
The EPA’s move follows a series of meetings between EPA Administrator Lee Zeldin, Arizona elected officials, and business and civic leaders, including a recent roundtable in Phoenix convened by U.S. Senator Mark Kelly. In announcing the pause, Zeldin acknowledged the need for flexibility and fairness in the application of Clean Air Act standards, especially when emissions from other states, nations, and natural events significantly influence local air quality.
Reprinted courtesy of
Patrick J. Paul, Snell & Wilmer,
John Habib, Snell & Wilmer and
Sukhmani K. Singh, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com
Mr. Habib may be contacted at jhabib@swlaw.com
Ms. Singh may be contacted at ssingh@swlaw.com
Read the full story...
Safeguarding Your Privileged Construction Information With a Clawback Agreement
June 08, 2026 —
Laura Fraher - Construction ExecutiveFor contractors and construction executives, a
dispute that escalates to litigation brings risks that go well beyond the jobsite. When a dispute escalates to litigation, the attorney-client privilege is a critical protection to safeguard your interests. Disclosing privileged material can undermine your litigation position and, in some cases, negatively impact your business. In the construction context, this often includes sensitive communications about project delays, defect investigations, safety incidents or payment disputes—materials that can significantly impact both liability and reputation.
During litigation, the discovery process requires the exchange of documents and data with your adversary. If privileged materials are disclosed to your adversary during discovery you risk the waiver of your privilege, which in plain terms means you lose the protection of the privilege and make the privileged information, and in some cases all other information related to the same subject matter, available to your adversary. It is critical that your attorney take steps to protect against the unintentional disclosure of privileged materials during discovery to avoid a waiver.
Reprinted courtesy of
Laura Fraher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Ms. Fraher may be contacted at
lfraher@barclaydamon.comGeorgia Court of Appeals Holds That Policyholder Can “Stack” the Limits of Each Primary Policy After Asbestos ClaimCanada Housing Surprises Again With July Starts IncreaseConstruction Managers, Are You Exposing Yourselves to Labor Law Liability?Massive US Storm Spawns Tornadoes, Wildfires, Leaving at Least 32 DeadInvestigators Explain Focus on Pre-Collapse Cracking in Florida BridgePJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load DemandPredicting Our Future with Andrew WeinreichFlorida Courts Inundated by Wave of New Lawsuits as Sweeping Tort Reform Appears ImminentMultiple Occurrences Found For Claims Against Supplier of Asbestos ProductsIllinois Appellate Court Finds Insurer Estopped From Denying Coverage Where Declaratory Judgment Suit Filed Too LateWhat Rich Millennials Want in a Luxury Home: 20,000 Square FeetRaw Sewage Spill Fouls Waters Between San Diego and Tijuana, MexicoAhead of the Storm: Preparing for IrmaAt $350 Million, Beverly Hillbillies Mansion Is Most Expensive in U.S.White and Williams Elects Four Lawyers to Partnership, Promotes Six Associates to CounselNew York Court Finds No Coverage Owed for Asbestos Losses Because Insured Failed to Prove Material TermsGreen Construction Claims: More of the SameAnatomy of a Construction Dispute- A Wrap UpArbitration Denied: Third Appellate District Holds Arbitration Clause Procedurally and Substantively UnconscionableAlexus Williams Receives Missouri Lawyers Media 2021 Women’s Justice Pro Bono AwardInability to Confirm Coverage Supports Setting Aside Insured’s Default Judgment on Grounds of Extrinsic MistakeInsurer's Judgment on the Pleadings Based Upon Expected Injury Exclusion ReversedRecycling Our Cities, One Building at a TimeHigh-Rise Design and Construction: Then, Now, and NextConstruction Defects Claims Can Be Limited by Contract Says Washington CourtBUILD Act Inching Closer To RealityAnti-Concurrent Causation Clause Preserves Possibility of CoverageAttention Contractors: U.S. Department of Labor Issues Guidance on Avoiding Discrimination When Using AI in HiringAlabama Still “An Outlier” on Construction DefectsCincinnati Team Secures Summary Judgment for Paving Company in Trip-and-Fall CaseFIFA May Reduce World Cup Stadiums in Russia on Economic Concern#6 CDJ Topic: Construction Defect Legislative DevelopmentsSouth Carolina Law Clarifies Statue of ReposeFailing to Adopt a Comprehensive Cyber Plan Can Lead to DisasterMortgage Firms Face Foreclosure Ban Until 2022 Under CFPB PlanConsequential Damages Can Be Recovered Against Insurer In Breach Of ContractIs It Time to Get Rid of Retainage?Construction Feb. Jobs Jump by 61,000, Jobless Rate Up from Jan.Damage Caused Not by Superstorm Sandy, But by Faulty Workmanship, Not CoveredComply with your Insurance Policy's Conditions Precedent (Post-Loss Obligations)Corrective Action Protest Grounds for GSA Schedule Federal Construction ContractorsAdditional Insured Prevails on Summary Judgment For Duty to Defend, IndemnifyForeclosures Decreased Nationally in SeptemberToward Increased Citizen Engagement in Urban PlanningMaine Court Allows $1B Hydropower Transmission Project to ProceedStatutory Bad Faith and an Insured’s 60 Day Notice to CurePowering Goal Congruence in Construction Through Smart ContractsAre You a Construction Lienor?South African Building Industry in Line for More State SupportVeterans Day – Thank You for Your ServiceDevelopers Celebrate Arizona’s Opportunity ZonesCities' Answer to Sprawl? Go Wild.Standard Lifetime Shingle Warranties Aren’t ForeverRepairing One’s Own Work and the one Year Statute of Limitations to Sue a Miller Act Payment BondNot Every Job Is Worth Winning: Contract Risk Questions Contractors Should Ask Before They Bid21 Snell & Wilmer Attorneys Named Lawyers of the Year by Best Lawyers® for 2027Court Holds That Parent Corporation Lacks Standing to Sue Subsidiary’s Insurers for Declaratory ReliefHow To Deal With Contractors Overcharging You – Bad Contractor Series Part 4New York’s 2022 Comprehensive Insurance Disclosure Act: Significant Amendments to the C.P.L.R.