Bona Fide Dispute Defeats Violation of Prompt Payment Act
June 15, 2026 —
David Adelstein - Florida Construction Legal UpdatesMost, if not all, jurisdictions, including the federal government, have what is known as a “Prompt Payment Act.” The objective is to ensure prompt payment. If prompt payment is not made, the Prompt Payment Act provides for interest penalties, as well as potentially other costs such as attorney’s fees.
But the thing is, it’s not as simple as untimely payment to support the recourse and interest penalties the applicable Prompt Payment Act affords. And the teeth associated with the applicable Prompt Payment Act are not as sharp as perhaps the party claiming untimely payment prefers.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.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.
Voluntary Dismissal of an Indemnity Claim Does Not Make the Subcontractor a “Prevailing Party,” Washington Court of Appeals Holds
September 21, 2026 —
Margarita Kutsin - Ahlers Cressman & Sleight PLLCIn
King County v. Walsh Construction Company II, LLC, No. 86503-0-I (Wash. Ct. App. Aug. 4, 2025), an unpublished decision from Division I of the Washington Court of Appeals, the Court affirmed the denial of a subcontractor’s request for prevailing-party attorney fees under an indemnity clause after the general contractor voluntarily dismissed its indemnity claims. Because the indemnity claim was no longer live and no determination of fault had occurred, the Court held that the trial court did not err in denying the request. ACS represented Walsh, the general contractor, in securing the denial of the fee request at the trial court that the Court of Appeals affirmed.
A Pass-Through Indemnity Claim That Ended Before Fault Was Decided
The dispute arose out of a public works contract under which King County hired Walsh Construction Company II, LLC (“Walsh”) to construct and install a conveyance pipeline. After the pipeline broke, King County sued Walsh for breach of contract and warranty, expressly identifying both Walsh and its subcontractor, Mears Group Inc., (“Mears”) as responsible. Walsh tendered defense and indemnity to Mears under the subcontract.
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Margarita Kutsin, Ahlers Cressman & Sleight PLLCMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
Colorado Supreme Court Reverses Course on Public Project Liens: Key Takeaways From Wadsworth v. Regional Rail Partners
July 27, 2026 —
Amanda E. McKinlay - Snell & WilmerOn April 6, 2026, the Colorado Supreme Court issued a unanimous opinion in Ralph L. Wadsworth Construction Company, LLC v. Regional Rail Partners, 2026 CO 19, reversing the Colorado Court of Appeals and providing much-needed clarity regarding verified statements of claim (VSOCs) under the Colorado Public Works Act, C.R.S. §§ 38-26-101 et seq. The decision resolves two issues that have generated significant concern among construction industry professionals since the Court of Appeals issued its opinion on August 1, 2024.
Under C.R.S. § 38-26-107(1), a subcontractor on a public works project may file a VSOC with the contracting public entity for amounts due and unpaid for “…furnished labor, materials, sustenance, or other supplies used or consumed by a contractor or his or her subcontractor in or about the performance of the work contracted to be done or that supplies laborers, rental machinery, tools, or equipment to the extent used in the prosecution of the work….” If a claimant files a VSOC for “an amount greater than the amount due” without a reasonable possibility that the amount is due and with knowledge that the claim is excessive, the claimant “shall forfeit all rights to the amount claimed” and becomes liable for the opposing party’s costs and attorneys’ fees. C.R.S. § 38-26-110.
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Amanda E. McKinlay, Snell & WilmerMs. McKinlay may be contacted at
amckinlay@swlaw.com
Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions
May 12, 2026 —
David Adelstein - Florida Construction Legal UpdatesContract drafting and interpretation matters.
A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case
here where the appellate court reversed based on the prefatory language.
But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:
Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Segal McCambridge Recognized in 2026 Chambers USA Rankings
June 15, 2026 —
Segal McCambridgeLos Angeles, CA, June 8, 2026 -
Segal McCambridge is pleased to announce that the firm has been recognized as a leader by Chambers USA in California. The firm is listed in the Chambers-ranked department, receiving a
Band 5 ranking for construction in California. The ranking further reinforces the firm's commitment to supporting California's construction market, from owners to developers and contractors, in high-stakes disputes statewide.
"Chambers' research-driven process and independence make this acknowledgment especially meaningful. We're proud of this ranking and grateful to our clients and colleagues whose consistent trust and collaboration make our work possible," said Jason P. Eckerly, Managing Shareholder of Segal McCambridge.
Chambers and Partners is widely regarded as one of the legal industry's most respected and independent ranking organizations. Operating across 200 jurisdictions and relied on in more than 70 countries, Chambers has, since 1990, conducted rigorous research to identify leading lawyers and law firms through a methodology that combines analysis of firm capability, achievement, and market presence through interviews and assessment of recent matters across more than 1,400 U.S. ranking tables, covering all 50 states, Washington, DC, and nationwide.
About Segal McCambridge
Segal McCambridge has built a reputation as a national law firm of accomplished trial attorneys for almost four decades. Founded in 1986, the firm has grown from a four-lawyer shop in Chicago to a firm with more than 20 offices nationwide. The firm routinely counsels and defends clients, including Fortune 500 companies, corporations, and individuals, across the United States in complex litigation matters, including, but not limited to: asbestos, class action, construction, employment, environmental, food and beverage, insurance coverage and bad faith, life sciences, product liability, professional liability, technology and cyber risk, transportation, and warranty. For more information, visit: www.segalmccambridge.com.
Ahlers Cressman & Sleight PLLC Recognized by Best Lawyers 2027
September 28, 2026 —
Ahlers Cressman & Sleight PLLCContinuing the trend from last year, Ahlers Cressman & Sleight PLLC is excited to announce that thirteen members of our firm have received recognition from Best Lawyers® in America for 2027.
The Best Lawyers in America® has been an annual publication since 1983 and focuses on the top legal talent across the United States and the globe. Through its rankings, Best Lawyers® provides a comprehensive guide to legal representation for individuals and businesses alike. Over time, Best Lawyers® has been recognized as one of the leading publications for attorney achievements and references.
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Ahlers Cressman & Sleight PLLC
The Best Lawyers in America® - Ball Janik Attorneys Earn Multiple Recognitions
September 01, 2026 —
Ball Janik LLPOrlando, FL, August 20, 2026 – Ball Janik LLP is pleased to announce that 24 of its attorneys have been recognized in the 2027 editions of The Best Lawyers in America® and Best Lawyers: Ones to Watch® in America. The 33rd Best Lawyers edition recognitions are based on peer review and highlight attorneys across a range of practice areas. This recognition underscores the broad experience Ball Janik's attorneys bring to the firm's construction defect practice.
"We're proud to be recognized by Best Lawyers again this year," said James C. Prichard, Managing Partner of Ball Janik LLP. "These honors reflect the expertise and depth of our team, our continued growth across Florida, and our commitment to providing strong counsel to clients in complex construction, insurance recovery, and litigation matters."
Ball Janik attorneys recognized in the 2027 edition of The Best Lawyers in America® include:
Keegan A. Berry — Construction Law
Brian T. Crevasse — Construction Law; Litigation - Construction
Todd Demetriades — Litigation - Construction
Joseph R. Fitos — Construction Law; Litigation - Construction
Megan A. Picataggio — Construction Law
Jon E. Lemole — Construction Law; Litigation - Construction
Salvatore G. Scro — Construction Law
Nicholas B. Vargo — Construction Law; Litigation - Construction
Kelly M. Corcoran — Construction Law
Gabriel Z. Coelho — Construction Law
Evan J. Small — Construction Law; Litigation - Construction
Franchesco Soto — Construction Law; Litigation - Construction
Phillip E. Joseph — Litigation - Construction; Real Estate Law
James C. Prichard — Construction Law
Ball Janik attorneys recognized in the 2027 edition of Best Lawyers: Ones to Watch® in America include:
Nicholas Passantino — Litigation - Construction
Amanda L. Gonzalez — Construction Law; Litigation - Construction
Morgan N. Lester — Litigation - Construction
Chris S. Tribbey — Construction Law
Kyle Bugden — Construction Law; Litigation - Construction
Brian Tannenbaum — Construction Law
Kayla Mosquera — Insurance Law
Natasha L. Biela — Commercial Litigation
Elijah C. Waring, Jr. — Product Liability Litigation - Defendants
Greg K. Demers — Construction Law
About Ball Janik LLP
Ball Janik LLP is a Florida-based law firm offering construction defect, construction law, insurance recovery, and commercial litigation counsel, to its local and national clients. The firm was founded in 1982 and has expanded its capabilities, professionals, and geographic footprint. What started as a small firm focused on real property, land use, and litigation (known then as Ball Janik & Novack) has grown to a team of 70-plus attorneys and paralegals in five offices in Florida, with centuries of combined experience and capabilities. The firm has been recognized by Chambers USA, including for its construction law capabilities in Florida, U.S. News & World Report and Best Lawyers®, The Best Lawyers in America©, Super Lawyers, and Corporate International. Read more at www.balljanik.com.
