ANAHEIM CALIFORNIA CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues

August 03, 2026 — William L. Porter - Porter Law Group
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction. Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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The GKN Aerospace Chemical Release and the Laws Designed to Address It

July 06, 2026 — Sean M. Sherlock - Snell & Wilmer
On May 21, 2026, a 34,000-gallon storage tank at the GKN Aerospace facility in Garden Grove, California began leaking methyl methacrylate (MMA), a volatile and highly flammable industrial chemical used to manufacture high-strength acrylic plastics. GKN Aerospace makes advanced military and commercial transparencies, such as aircraft canopies, windshields, cabin windows, bullet-resistant glass, and spacecraft windows. In polymer chemistry lingo, MMA is known as a monomer. Monomers are like individual links to a chain. Under the right conditions they link up (react) with each other to form long-chained polymers, or plastics. MMA is an unstable monomer that requires controlled storage conditions to avoid setting off a polymerization (chain) reaction. According to early reports, the MMA tank at GKN Aerospace overheated. The cause of the overheating is not yet clear, but the overheating may have created conditions enabling the MMA to initiate polymerization, which in turn generated heat, which in turn generated pressure, activating the tank’s pressure-relief system and releasing MMA vapor into the atmosphere. Concerns about a runaway reaction, massive release, and explosion led the Orange County Fire Authority to order evacuation of approximately 40,000 residents and closure of thirteen schools. Read the full story...
Reprinted courtesy of Sean M. Sherlock, Snell & Wilmer
Mr. Sherlock may be contacted at ssherlock@swlaw.com

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Owner Taking Assignment of General Contractor’s Claims Against a Subcontractor(s)

September 21, 2026 — David Adelstein - Florida Construction Legal Updates
Here’s a scenario that occurs in construction defect cases. An owner sues a general contractor and subs for construction defects. The owner settles with a number of parties and takes an assignment of the general contractor’s claims against some or all of the subs and pursues the remaining parties for indemnity based on the assignment of the general contractor’s claims. This was the scenario in Craftsman Plastering and Lath, Inc. v. Rath Mor, LLC, 2026 WL 2328032 (Fla. 4th DCA 2026). The owner settled with the general contractor and all subs except one. The owner took an assignment of the general contractor’s claim against the sub, and really the indemnity claim. The owner was then substituted as the real party in interest as it relates to the general contractor’s claims against the sub. The owner sought roughly $780,000 in attorney’s fees and costs in connection with the dispute claiming the sub was liable for such fees. The jury didn’t buy the argument and awarded the owner about $55,000. Basically, the jury seemingly prorated the fees by the number of parties, at least, that’s how the math worked out. The owner didn’t like that and moved for an additur to increase the jury’s verdict which the trial court granted. This was reversed on appeal despite the fact that a trial court has broad discretion to grant a motion for additur. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Trend Continues Where Unlicensed Contractors Have No Recourse

July 13, 2026 — David Adelstein - Florida Construction Legal Updates
There’s been a recent trend in Florida case law that has figuratively “killed” unlicensed contractors. Here’s another one. The moral to this trend and case is simple: make sure you have the proper licenses prior to serving as a contractor under Florida law. Trying to be cute, as seemed to be the situation in this case with a creative argument, is not an argument that will carry the day and your resources will be devoted to being creative versus the ultimate merits of the dispute. In Ramindesign, LLC v. Skarzynski, 2026 WL 1649571 (S.D.Fla. 2026) an owner of real property hired a company to design and construct a spec home on the property. The company and its owner were NOT licensed contractors. The contract stated the company was serving as a “spec developer” and referred to it as the contractor throughout the contract. Other than this, the contract was set up as a cost plus a fee. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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California Contractors Get a Much-Needed Break: SB 342 Softens the Harsh Consequences of Contractor License Lapses

October 20, 2026 — Heather Frisch - The Construction Seyt
Imagine completing a multimillion-dollar project, performing quality work, paying your subcontractors, and satisfying the owner, only to discover that a temporary contractor license lapse could prevent you from recovering payment for that work or pursuing claims for extra work. For decades, that was the reality under California Business and Professions Code section 7031. A contractor that allowed its license to lapse, even briefly, could face catastrophic consequences completely disconnected from the quality of its work. In some cases, a contractor that performed otherwise flawless work could be barred from recovering payment and even be ordered to disgorge compensation already received – even if the owner knew the contractor had a lapse in its licensing and allowed it to continue construction. That reality is about to change. Read the full story...
Reprinted courtesy of Heather Frisch, Seyfarth
Ms. Frisch may be contacted at hfrisch@seyfarth.com

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A Customized Approach to Data Center Construction

June 29, 2026 — James P. Bobotek, Arielle L. Murphy & Robert A. James - Gravel2Gavel Construction & Real Estate Law Blog
Data center construction projects are, to put it mildly, distinct. They differ from traditional construction in a host of manners, and are particularly distinctive because the value of the facility depends on unique measures of performance. A center that cannot meet uptime, cooling, redundancy or connectivity standards will not achieve its mission, whether or not the structure itself meets standard industry contract-form “substantial completion” or “mechanical completion” definitions. Owners, developers, lenders, operators and hyperscalers—especially hyperscalers!—want it all. They seek favorable and stable pricing, accelerated delivery and sophisticated components, all of which are evolving in “real project time.” Standard construction contract forms deserve extensive modifications to align clauses with expectations, with a heightened focus on systems integration, commissioning, and allocation of special risks. This article details customized considerations for drafting, negotiating and administering data center design and construction agreements. Reprinted courtesy of James P. Bobotek, Pillsbury, Arielle L. Murphy, Pillsbury and Robert A. James, Pillsbury Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com Ms. Murphy may be contacted at arielle.murphy@pillsburylaw.com Mr. James may be contacted at rob.james@pillsburylaw.com Read the full story...

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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 Read the full story...

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Fraud Allegations Stymie Additional Insured’s Request for a Defense

May 14, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The Federal District Court granted the insurer’s motion to dismiss the insured’s complaint seeking a defense of the underlying case alleging fraud. Renovation Realty, Inc. v. Colony Ins. Co., 2026 U.S. Dist. LEXIS 21409 (S.D. Cal. Jan. 30, 2026). Mara Fortin sued Renovation Realty and others (“Fortin litigation”) from the fraudulent sale of a residence. The underlying complaint alleged Renovation “deliberately misrepresented of the residence as ‘completely remodeled’ and ‘meticulously maintained’.” The defendants, however, including Renovation, “knew from sources including a pre-renovation termite report documenting fungus and dry rot . . . that the Property harbored pre-existing material defects.” Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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