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.”
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Breaking Ground On New California Public Works Prevailing Wage Requirements
April 27, 2026 —
Heather Frisch, Christopher Bouquet & Ashley Stein - The Construction SeytSeyfarth Synopsis: As of January 1, 2026, AB 889 bulldozed California’s Prevailing Wage law, which impacts public works employers—including public agencies, the contractors that work for them, and private owners and developers whose projects may be subject to public works requirements. The amended law reframes the calculation of fringe benefits for individuals who work on public works project and mandates annualization of such benefits, demolishes the practice of frontloading these benefits, and requires employers to maintain inspection-ready records of compliance.
This year, AB 889 significantly revised California’s prevailing wage law, codified at Labor Code section 1773.1, to clarify the state’s prevailing wage regulations and streamline enforcement. Accordingly, as of January 1, 2026, California public works employers are required to annualize employees’ fringe benefits and maintain specific documentation demonstrating statutory compliance. These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements. Continue reading for the blueprint of how to comply with the state’s amended prevailing wage law.
Reprinted courtesy of
Heather Frisch, Seyfarth Shaw LLP,
Christopher Bouquet, Seyfarth Shaw LLP and
Ashley Stein, Seyfarth Shaw LLP
Ms. Frisch may be contacted at hfrisch@seyfarth.com
Mr. Bouquet may be contacted at cbouquet@seyfarth.com
Ms. Stein may be contacted at astein@seyfarth.com
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Beyond the Storm: How Non-Hurricane Catastrophes Expose Florida’s Construction Defect Blind Spot
August 11, 2026 —
Franchesco “Frank” Soto & Amanda L. Gonzalez - Ball JanikOn June 8, 2026, a magnitude 6.1 earthquake struck the Gulf near the coast of Cuba, the largest instrumentally recorded earthquake in the Gulf since seismic monitoring began in 1950. Buildings swayed, offices were evacuated, and many residents along the east coast of Florida, from Miami-Dade to Jacksonville, felt the ground shake. Although no tsunami followed and reported structural damage was limited, this event exposed a blind spot that Florida property owners, developers, and their counsel cannot afford to ignore: catastrophic stress on Florida buildings does not always come in the form of a named storm.
Florida property owners have grown accustomed to preparing for wind, storm surge, floods, and torrential rain. Far less attention is paid to earthquakes, sinkholes, tornadoes, hail, and non-tropical flooding, each of which can place unexpected stress on buildings not designed with those forces top of mind and can trigger deficiencies in buildings that were not otherwise known, expose design failures, and create an urgency for both insurance claims and subsequent litigation.
Non-Hurricane Triggers of Latent Defects
Seismic activity is the clearest example. Florida’s building code accounts for wind loads, not seismic forces, meaning even a moderate earthquake can reveal weaknesses in curtain wall systems, structural connections, or foundations that were already marginal. Sinkholes, driven by Florida’s karst limestone geology, remain a persistent threat, particularly in Central Florida, where subsurface voids can undermine foundations without warning. Non-tropical flooding, like the record rainfall that flooded South Florida in June 2024, can intrude through building envelopes and waterproofing systems that were never stress-tested for such volumes of water. Tornadoes and hail, while more localized, can cause roofing and envelope failures that mimic, mask, or trigger latent construction defects.
The Litigation and Coverage Disputes That Follow
When one of these events strikes a building already carrying undisclosed or unresolved construction defects, the resulting disputes become considerably more complex. Property owners and associations must move quickly to document existing conditions and distinguish damage caused by the event from pre-existing defective construction, the same causation issue that arises in the hurricane context under Chapter 558, but often without the benefit of established precedent or adjuster experience with these less common events.
Insurance coverage disputes frequently follow close behind. Carriers may dispute whether an earthquake, flood, or other peril is covered at all, particularly where policies contain earthquake or flood exclusions requiring separate endorsements, or anti-concurrent causation language that can bar coverage entirely when a covered peril combines with an uncovered one, such as pre-existing defective construction, to cause a loss. Sinkhole claims carry their own statutory framework under Florida law, requiring specific testing protocols and reporting before a claim is compensable. Developers and contractors, in turn, may find themselves defending Chapter 558 claims while simultaneously litigating with their own carriers over defense and indemnity obligations.
Practical Risk Mitigation Strategies
Property owners, associations, and developers can take several concrete steps to reduce their exposure. First, maintain thorough documentation, including engineering reports, maintenance logs, and photographs, well before any event occurs. This documentation is often the deciding factor in causation disputes. Second, engage structural engineers and consultants immediately following any seismic event, unusual flooding, or storm damage, regardless of whether a hurricane is involved. Prompt inspection preserves evidence and can help prevent inadvertent waiver of construction defect claims. Third, review insurance policies regularly with counsel or a broker to confirm earthquake, flood, and sinkhole coverage matches the property’s actual risk profile, rather than assuming a standard property policy responds to every peril. Fourth, avoid rushing to remediate before conditions are documented and/or before consulting counsel. Well-intentioned repairs can inadvertently compromise evidence needed to prove a defect claim.
The June earthquake was a reminder that Florida’s catastrophic risk profile extends beyond hurricane season. Property owners, associations, and developers who build readiness plans around all forms of catastrophic stress, not just named storms, will be far better positioned when the next unexpected event occurs.
Franchesco “Frank” Soto is a partner in
Ball Janik’s Construction Defect Practice Group in Miami. He may be reached at fsoto@balljanik.com.
Amanda L. Gonzalez is a litigation attorney in
Ball Janik’s Construction Defect Practice Group in Miami. She may be reached at agonzalez@balljanik.com.
Endorsement is Void Where Compliance is Impossible
September 21, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Sixth Circuit found that the insured’s loss of property due to fire was covered despite noncompliance with an endorsement requiring encompassing the property. 3371 Reading, LLC v. Liberty Mut Group, Inc., et al., 2026 U.S. App. LEXIS 19156 (6th Cir. June 29, 2026).
The insured, 3371 Reading, owned a building undergoing renovation. After the structure burned down, 3371 Reading made a claim under its policy with Ohio Casualty Insurance Company. Ohio Casualty relied on an endorsement requiring fencing round the jobsite.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Properly Taking Judicial Notice of Florida’s Building Code
October 12, 2026 —
David Adelstein - Florida Construction Legal UpdatesMany construction defects cases involve Florida’s Building Code. A recent non-construction case, BSREP II PBG Resort, LLC v Ginsburg, 2026 WL 265226 (Fla. 4th DCA 2026), discussed a court taking judicial notice of a provision in the Florida Building Code. This case was a premise liability case where the plaintiff tripped in an asphalt parking lot. The plaintiff, without complying with proper procedural notice protocol, asked the court to take judicial notice of a section of Florida’s Building Code, i.e., admitting this section as relevant evidence in the case. The trial court granted the request for judicial notice and the plaintiff used this as the basis of her cross-examination, the jury instructions, and closing argument that the violation of this section of Florida’s Building Code was evidence of negligence. This was in error.
First, Florida’s Building Code is NOT a statute but an administrative rule. Ginsburg, supra. As an administrative rule, a court “may” but is not obligated to take judicial notice of the rule – it is a permissive judicial notice request per Florida Statute s. 90.203 and 90.202(9). This is important because the trial court viewed Florida’s Building Code as a statute it mandatorily had to take judicial notice of per Florida Statute s. 90.201, which was in error. Because it was permissive, the plaintiff needed to comply with statutory procedural notice protocols, which the plaintiff failed to do.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Alert: Fraudulent Notice of Nonpayment Defense Applies to Payment Bond Claims
April 27, 2026 —
David Adelstein - Florida Construction Legal UpdatesUnder Florida’s Lien Law, there’s an affirmative defense or affirmative claim known as a “
fraudulent lien.” The fraudulent lien defense or claim is set out in Florida Statute s. 713.31. This defense also extends to payment bond claims, whether under a private statutory payment bond (Florida Statute s. 713.23) or a public payment bond (Florida Statute s. 255.05), as it pertains to the notice of nonpayment. A notice of nonpayment needs to be served within 90 days from final furnishing to preserve a claimant’s rights against the bond. However, there really has not been a case, until now, that discusses a “fraudulent notice of nonpayment.”
In K&M Electric Supply, Inc. v. Brown Electrical Solutions, LLC, 51 Fla.L.Weekly D672a (Fla. 4th DCA 2026), a prime contractor and surety prevailed at the trial level on their fraudulent notice of nonpayment defense based on a supplier’s notice of nonpayment and action against a public payment bond (under Florida Statute s. 255.05).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Texas Prepares to Restart Data Center Construction, with Around 300 Projects Under Review And 6,608 MW Awaiting Energization Approval, Driving Demand for Rapid-Response Lifting Operations
October 20, 2026 —
SarensTexas is experiencing an unprecedented increase in power demand. The ERCOT (Electric Reliability Council of Texas) power grid reached a record peak demand of 91.1 GW in summer 2026, 6% above the previous record, according to the U.S. Energy Information Administration (EIA). This is compounded by interconnection requests totaling around 474 GW, more than five times the record peak, with approximately 90% of these requests related to data centers, according to the Office of the Governor of Texas. Within this context, authorities have launched a comprehensive review process. In August , the Governor directed the Public Utility Commission of Texas (PUCT) and ERCOT to audit all data centers progressing toward grid connection, covering around 300 projects. ERCOT has also suspended approvals to energize data centers of 75 MW or more and has set December 10 as the date for the publication of its reports.
For the industry, this pause creates a valuable planning window. Goldman Sachs notes that it takes 18 to 24 months to build a data center once permits have been secured, while only 50% to 60% of planned capacity is delivered on schedule. Supply chain constraints and labor shortages are among the most common causes of delays. In this context, construction agility is becoming increasingly critical. A one-month delay at a typical 60 MW U.S. data center is estimated to cost up to $14.2 million in lost revenue, additional costs and penalties, according to STL Partners data. Against this backdrop, Sarens, which has operated in the U.S. since 2009 and is headquartered in Houston, with offices also in Odessa and Beaumont, positions as a logistics partner for developers and contractors preparing for the execution phase.
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Sarens
Kahana Feld Obtains Favorable Result in High-Exposure NY Premises Liability Case
June 15, 2026 —
Leigh Katz - Kahana FeldKahana Feld partner Leigh Katz obtained a significant victory in a recent matter involving a videotaped alleged trip and fall on the sidewalk in front of the client’s commercial residence. The plaintiff claimed he suffered a knee injury that necessitated surgery, along with other assorted injuries that prevented him from continuing high-level athletic activities. Leigh was able to demonstrate that the fall was staged and received a voluntary discontinuance with prejudice.
At mediation, Leigh emphasized that KF’s expert witness challenged the plaintiff’s claim that the fall was caused by a sidewalk height differential after reviewing the videotape footage and determining the plaintiff’s fall began before his feet made contact with the alleged defect. Based on this analysis, the expert concluded the reported height differential did not initiate the fall, which supported KF’s position that the incident depicted in the video was unrealistic and appeared staged.
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Leigh Katz, Kahana FeldMs. Katz may be contacted at
lkatz@kahanafeld.com
