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
Read the full story...
Suit Limitation Provision Eliminates Wind Loss Claim
July 27, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for judgment on the pleadings was granted after the insured failed to file suit against the insurer within the policy’s two-year suit limitation provision. Interstate Investments, LLC v. Mt. Hawley Ins Co., 2026 U.S. Dist. LEXIS 98108 (S.D. N. Y. May 4, 2026).
On or before June 27, 2023, a wind, hail and rainstorm damaged Interstate’s property in Oklahoma. Interstate filed a claim under its policy with Mt. Hawley. The policy provided that New York law applied and contained a two- year suit limitation provision.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
HHMR Attorneys Steve Heisdorffer and Dave McLain Named to 2026 Super Lawyers List
April 08, 2026 —
Higgins, Hopkins, McLain & Roswell, LLCHiggins, Hopkins, McLain & Roswell, LLC is pleased to announce that Steve Heisdorffer and Dave McLain have been selected to the 2026 Colorado Super Lawyers list for construction litigation.
Mr. Heisdorffer has been consistently recognized in recent years for his work in construction litigation and related business disputes. Mr. McLain has been recognized by Super Lawyers each year from 2020 through 2026, following his earlier inclusion on the Rising Stars list from 2009 through 2012.
Read the full story...Reprinted courtesy of
Higgins, Hopkins, McLain & Roswell, LLC
Applying Jury Verdict Method in Quantifying Damages Due to Defective Specifications
March 31, 2026 —
David Adelstein - Florida Construction Legal UpdatesAn older case deals with three important considerations: (1) defective specifications; (2) whether the defective specifications were misleading or misrepresentative; and (3) applying the jury verdict method in quantifying damages.
In Metric Construction Co., Inc. v. U.S., 80 Fed. Cl. 178 (Fed. Cl. 2008), a contractor was contracted by the federal government to construct a warehouse. There were defects in the structural steel design specifications underlying the standing seam metal roof installed by the contractor and, as a result, the roof system leaked causing damage. The contractor incurred significant costs in repairing the damage, and pursued recovery of these costs against the government. The contractor claimed the structural steel design serving as the framework for the metal roof was defective and misleading and caused the leaks.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
How AEC Firms Move AI Beyond the Pilot
July 27, 2026 —
Aarni Heiskanen - AEC BusinessMost AEC firms can run an AI pilot, but few can scale it. Enthusiasm for a first experiment rarely extends beyond the pilot team, leaving the pilot as an isolated win that never changes how the company works. In a recent
AEC Business Podcast episode,
Adeline Chan, CEO and co-founder of Hong Kong-based AAL Innovation, explained why that gap exists and what separates the firms that close it from those that stall.
The Pilot Mindset that Holds Construction Back
Adeline draws a sharp contrast between finance and construction. Banks cannot afford to fall behind their competitors, so they pilot constantly, sometimes running hundreds of proof-of-concept teams in parallel and letting them compete internally to identify the approach that works. The winning concept becomes the standard and scales across the organization, and the return on investment is measured in undeniable numbers.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
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.
GRSM Trial Team Holds Alameda County Asbestos Verdict to $900,000 Against $50 Million Demand
July 27, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Partners John Katerndahl and Vincent Gunter recently obtained an outstanding trial result for a manufacturer of asbestos-containing electrical cable, holding a jury verdict to $900,000 against a $50 million demand following an eight-week trial in Alameda County Superior Court, which is among the most challenging asbestos venues in the country. The GRSM team also included Associate Brandon Sanchez, on-site trial Paralegal Laura Vitanova, and Paralegal Kerrie Lease.
The plaintiffs, the surviving spouse and four children of a former painter who died of mesothelioma, alleged that the decedent was exposed to asbestos from the company’s electrical cable during construction of a California nuclear power facility. GRSM’s client was the sole remaining defendant at trial. The plaintiffs asked the jury for $50 million and called 15 witnesses across their case-in-chief and rebuttal.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
California’s Retention Reform on Private Construction Projects
February 17, 2026 —
Michael McKeeman - The Construction SeytRetention has long been a contentious issue in California construction. Traditionally, owners withheld retent
Negligence Per Se Claim Based Upon Failure to Pay Benefits FailsCalifornia Supreme Court Declines to Create Exception to Privette Doctrine for “Known Hazards”El Paso Increases Surety Bond Requirement on Contractors2014 WCC Panel: Working Smarter with TechnologyClimate Superfund Litigation: Courts Split on Venue and Intervention in New York and Vermont CasesWendel Rosen’s Construction Practice Group Receives “Tier 1” Ranking by U.S. News and World ReportsTetra Tech-U.S. Cleanup Dispute in San Francisco GrowsCalifornia Assembly Passes Expedited Dam Safety for Silico
Representation and Warranties Claims Reach Record Payouts in 2024
Farewell Capsule Tower, Tokyo’s Oddest Building
“Five for Five”: Newark Trial Team Achieves Another Favorable Result in Fifth 2025 Case to Proceed to Jury Selection
Precast Standards' Work Under Way as Brittle Fracture Warnings Aired
Lost Rental Income not a Construction Defect
Settlement Ends Construction Defect Lawsuit for School
Construction Companies Can Be Liable for “Secondary Exposure” of Asbestos to Household Members
A New Digital Twin for an Existing Bridge
U.S. Tornadoes, Hail Cost Insurers $1 Billion in June
Don’t Ignore Prejudgment Interest
Seventh Circuit Finds Allegations of Occurrence and Property Damage Require a Defense
Zero-Net Energy Homes Costly Everywhere but at the Electric Meter
Disaster-Relief Bill Stalls in Senate
New Law Raises Standard for Defense Experts as to Medical Causation
Undercover Sting Nabs Eleven Illegal Contractors in California
California Supreme Court Declines to Create Exception to Privette Doctrine for “Known Hazards”
Nine Gibbs Giden Partners Listed in Southern California Super Lawyers 2022
Rebuilding After the 2025 Southern California Fires
2017 California Employment Law Update
Be Aware of Two New Statutes that Became Effective May 1, 2021
The “Builder’s Remedy” Looms Over Bay Area Cities
Contingent Business Interruption Claim Denied
DoD Testing New Roofing System that Saves Energy and Water
Five LEED and Green Construction Trends to Watch in 2020
Sick Leave, Paid Time Off, and the Families First Coronavirus Response Act
Construction and AI: What Contractors Need to Know from ABC’s New Report
Best Lawyers® Recognizes 37 White And Williams Lawyers
Contractors’ Right to Sue in Washington Requires Registration
Do Construction Contracts and Fraud Mix After All?
Mediation Clause Can Stay a Miller Act Claim, Just Not Forever
It’s a Jolly Time of the Year: 5 Tips for Dealing with Construction Labor Issues During the Holidays
Insurer’s Discovery Requests Ruled to be Overbroad in Construction Defect Suit
New England Construction Defect Law Groups to Combine
No Coverage for Property Damage That is Limited to Work Completed by Subcontractor
DC Metro Extension’s Precast Supplier Banned from Federal Contracts
Policy's Operation Classification Found Ambiguous
General Contractor’s Excess Insurer Denied Equitable Contribution From Subcontractor’s Excess Insurer
Water Reuse Emerges as a Critical Strategy for Data Center Development
Serving the 558 Notice of Construction Defect Letter in Light of the Statute of Repose
SDOT Issues Construction Moratorium for FIFA 2026: What Contractors Need to Know and How to Prepare
Super Lawyers Selects Haight Lawyers for Its 2023 California Rising Stars List
El Paso Increases Surety Bond Requirement on Contractors
Daily Journal Publishes Article by Brenda Radmacher on Proposed Overhaul of California Construction Defect Law
Let’s Get Specific: Rhode Island Court Asserts Jurisdiction Over Out-of-State Manufacturer
Dispute Review Boards for Real-Time Dispute Avoidance and Resolution
Maximizing Contractual Indemnity Rights: Problems with Common Law
AGC’s 2024 Construction Outlook. Infrastructure is Bright but Office-Geddon is Not
Chinese Brooklyn-to-Los Angeles Plans Surge: Real Estate
Narberth Mayor Urges Dubious Legal Action
Recent Amendments and Caselaw Affecting the Construction Industry in Texas
