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.com
Limitations of Liability Provisions in Construction Contracts: A Means to Manage Risk and Limit Financial Exposure
June 23, 2026 —
Ellen Chapelle, Richard Reizen, Hannah Batsche - Construction ExecutiveTaking a cue from architects and engineers, construction contractors have started inserting limitation of
liability clauses in their construction contracts to manage risk and limit financial exposure. This article will address the specific risks that can be limited through an LOL, tips for negotiating the LOL terms with reluctant owners to cover those specific risks, how to limit unintended consequences of an LOL (such as relieving an insurer of its obligations to cover certain losses), and approaches to setting the amount of the liability cap in the LOL.
Addressing Particular Risks
An LOL can address a wide range of risks, including:
- Damages for delay
- Liability for non-conforming or defective work
- Liability for third-party bodily injury or property damage
- Liability excluded by a general liability policy (e.g., pollution and cyber liability)
- Liability related to intellectual property
Reprinted courtesy of
Ellen Chapelle, Richard Reizen, Hannah Batsche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Congratulations to BWB&O’s 2027 Southern California Super Lawyers and Rising Stars Honorees!
September 08, 2026 —
Bremer Whyte Brown & O'Meara, LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners
Nicole Whyte,
Keith Bremer,
John Toohey, and
Tyler Offenhauser have been named to the 2027 Southern California Super Lawyers list. Notably, Nicole Whyte was also selected to the Top 50 Orange County Super Lawyers list, an honor reflecting her outstanding work, leadership, and impact in the legal community.
Associates
Kevin Moore,
Sukayna Jaidi, and
Andrew Mathews are also being recognized as 2027 Southern California Super Lawyers Rising Stars.
Our team is being honored for their distinguished service and dedication in Family Law, Civil, Business, Construction, and Personal Injury Litigation.
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara, LLP
Generic Complaint Alleging Bad Faith is Insufficient
August 24, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insurer’s motion for judgment on the pleadings after determining that the insured’s claims for bad faith and unfair claims settlement practices were insufficiently pled. Navia v. State Farm Fire & Cas. Co., 2026 U.S. Dist. LEXIS 111261 (W.D. N. C. May 20, 2026).
The insured submitted a claim for damages to real property owned by the insured allegedly caused by Hurricane Helene. State Farm advised the insured that only some of the claimed damages were covered by the policy and payment for such damages were denied because the estimate for the covered damages did not exceed the policy’s deductible. The insured sued asserting claims for breach of contract, bad faith, and unfair claim settlement practices.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Preventing Common and Costly Water Intrusion Events in Construction
July 13, 2026 —
Andrew Swift - Construction ExecutiveWater leaking into a building is a leading cause of
damage and loss in the construction industry. On one jobsite, heavy rains flooded a sub-basement, damaging a new electrical transformer—all because a roof drain was not property connected. On another jobsite, a drinking-fountain supply line broke in a multistory building that was undergoing renovation, causing water to run—undetected—for an entire weekend, resulting in water damage to all lower floors, where construction had been finished.
Those loss scenarios could have been prevented with a comprehensive and effective water damage prevention plan (WDPP). This includes routine site inspections to identify uncontrolled water damage exposures and basic maintenance to make sure drains are clean of debris and divert them to a catch basin or low point away from the building. An effective WDPP plan also incorporates technology such as backflow preventers on sewer connections and water sensing technology to monitor the most vulnerable exposures.
Reprinted courtesy of
Andrew Swift, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Insurer Cannot Dispose of Water Leak or Bad Faith Claims on Motion for Summary Judgment
July 20, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for summary judgment seeking to eliminate the insured’s claims for damage from a water leak, bad faith and punitive damages failed. Nargizyan v, State Farm General Ins. Co., 2026 Cal App. LEXIS 302 (Cal. Ct. App. April 15, 2026).
The insured noticed tiles on his kitchen floor were warmer than usual. He found water dripping from the top of the crawl space under the house. He noticed water was “dripping in different places” but not pouring like a faucet. “There were too many places to count where water was dripping and there was water all over the place.”
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insurance Coverage and Bad Faith Practice Earns Prestigious Band One Ranking in the Chambers USA 2026 Guide
June 22, 2026 —
White and Williams LLPWhite and Williams LLP's Insurance Coverage and Bad Faith Practice Group is pleased to share that it has received a Band One ranking in the Chambers USA 2026 Guide for Insurance, Pennsylvania. Additionally, Patricia B. Santelle, Chair Emeritus, Randy Maniloff, Partner, and Robert Walsh, Partner have all been individually ranked on the Chambers USA 2026 Guide in Insurance in Pennsylvania.
The Insurance Coverage and Bad Faith Practice's consistent focus on their clients and handling of complex claims were just two of the attributes contributing to their elite Band One ranking, after 11 years on the Chambers USA list. When asked about their experience working with White and Williams’ Pennsylvania Insurance Practice, one client stated, “What distinguishes White and Williams is the high level of service and accountability. The team is responsive, organized and reliable, which allows our internal teams to move quickly and make informed decisions with confidence.”
Read the full story...Reprinted courtesy of
White and Williams LLP
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.