Anaheim California Construction Expert Witness Directory

Doctrine of Substantial Performance When It Comes to Payment

July 27, 2026 — David Adelstein - Florida Construction Legal Updates
A recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:

Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”

Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Suit Limitation Provision Eliminates Wind Loss Claim

July 27, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The 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 Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict

May 26, 2026 — Gray Development Group
PHOENIX, May 19, 2026 /PRNewswire/ -- A Maricopa County court has entered a $323 million compensatory damages judgment in favor of Gray Development Group against ZOM Holding Inc., doing business as ZOM Living, following a 12-day trial, a unanimous jury verdict and post-trial proceedings related to a proposed business transaction. The jury found ZOM liable on claims of breach of contract and breach of the implied covenant of good faith and fair dealing stemming from a proposed joint venture tied to a planned pipeline of luxury multifamily and commercial projects in Phoenix and Scottsdale. The lawsuit centered on a 13-project, $1.4 billion development pipeline originated and planned by Gray Development Group over more than a decade. In 2019, Gray invited Florida-based ZOM to participate in a joint venture involving the completion of five projects, which would have marked ZOM's entry into the Arizona market. According to court findings presented at trial, the companies entered into a mutual confidentiality and non-circumvention agreement before Gray shared extensive sensitive and proprietary information related to the projects, including planning, market analysis, costs, financial data, local business relationships and operational strategies developed by Gray over decades in Arizona. Evidence presented during trial showed that over a 10-month period while under contract, ZOM made hundreds of requests for confidential project and market information before circumventing Gray and pursuing the projects independently, ultimately displacing Gray from projects it spent years planning and developing. ZOM Living, headquartered in Orlando, develops multifamily and senior housing communities across the United States and operates regional offices in Boston, Dallas, Fort Lauderdale, Nashville, Phoenix, and Raleigh. ZOM is owned by Timeless Investments, the Amsterdam-based family office of Dutch businessman Hans van Veggel, which acquired the company in 1997. About Gray Development Group Gray Development Group was founded by architect Bruce Gray in 1991. The Phoenix-based company was the top-ranked multifamily developer in Arizona for more than a decade. The company designed and developed more than 15,000 apartment and condominium units throughout metropolitan Phoenix. Two Gray-designed developments — a Tempe midrise and a San Diego high-rise — received National Apartment Community of the Year awards.

Are “Financial Hardship” Damages Recoverable?

June 08, 2026 — David Adelstein - Florida Construction Legal Updates
In a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president and his wife. Are these damages recoverable? Drumroll…The Board ruled that the contractor cannot recover such financial hardship damages. As it relates the personal financial hardship damages, the Board ruled, “Neither [the contractor’s] president nor his wife are a party to this contract, are in privity of contract with [the government], or are the beneficiaries under this contract. [The contractor], therefore, cannot recover for any losses that either one has suffered individually and that [the contractor] claimed in this appeal.” F.O.G., LLC, supra. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Ninth Circuit Affirms District Court’s Finding of No Coverage for Interior Leak

March 24, 2026 — Tred R. Eyerly - Insurance Law Hawaii
Applying California law, the Ninth Circuit affirmed the district court’s finding that water damage caused by a leaking pipe over time was not covered under the insured’s homeowners’ policy. Mojica v. State Farm General Ins. Co., 2025 U.S. App. LEXIS 32405 (9th Cir. Dec. 11, 2025). A small hole, slightly larger than a pen tip in size, developed in a pressurized hot water pipe. The resulting leak lasted for nearly six days and released enough water to saturate and ruin all the subflooring and flooring in the insureds’ home. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Sausage-Making Often Relies on the Good Sense of the Chef Rather than the Recipe

June 23, 2026 — Garret D. Murai - California Construction Law Blog
Even for lawyers, the rules governing litigation can get complex and convoluted. Does something need to be filed? What needs to be filed? When is the deadline for filing? Simple questions with not always with straightforward answers. This was the case in R & J Sheet Metal, Inc. v. W.E. O’Neil Construction Co. of California, 111 Cal.App.5th 878 (2025), which involved sheet metal panels lost when they fell into the Port of Long Beach harbor. Read the full story...
Reprinted courtesy of Garret D. Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Protect Your Projects By Identifying and Controlling Hidden Contract Risks

March 10, 2026 — Larry Borda & Daniel Lund III - JD Supra
In a recent webinar entitled “Spreading the Risk and Avoiding Killer Contract Clauses,” Phelps lawyers Daniel Lund and Larry Borda examined contractual provisions that most often expose construction professionals to unexpected financial and legal risk. While construction contracts may appear routine, each contract serves as the primary mechanism for managing, allocating, and mitigating risk among parties involved in complex projects—often valued in the hundreds of millions or billions of dollars. When parties fail to fully understand the terms they sign, costly and avoidable consequences frequently follow. Contracts as Risk-Transfer Instruments Construction contracts are the primary method for transferring risk. While contracts authorize work and define scope, they also allocate responsibility for the risks inherent in construction projects. Some may imagine a world where a one-page agreement and a set of plans would suffice. In reality, modern construction requires detailed agreements—particularly provisions designed to anticipate problems, distribute burdens and reduce disputes. Reprinted courtesy of Larry Borda, Phelps and Daniel Lund III, Phelps Mr. Borda may be contacted at larry.borda@phelps.com Mr. Lund may be contacted at daniel.lund@phelps.com Read the full story...

Seventh Circuit, With an Assist From the Illinois Supreme Court, Finds That “Pollution Exclusion” Bars Coverage For Emissions Allowed Under Regulatory Permit

April 20, 2026 — Jason Taylor - Traub Lieberman Insurance Law Blog
In Griffith Foods Int’l Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 24-1217 & 24-1223 (7th Cir. Mar. 13, 2026), the Seventh Circuit addressed the meaning and scope of a pollution exclusion in a standard-form commercial general liability insurance policy for underlying injuries caused by ethylene oxide (EtO) emissions. The insurance dispute arose out of underlying tort litigation involving bodily injury claims, including cancer, allegedly caused by emissions of ethylene oxide over a 35-year period from 1984 through 2019 by Griffith Foods International and later Sterigenics U.S. The pollution exclusion at issue generally barred coverage for “bodily injury” arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, or other irritants, contaminants or pollutants. Interpreting similar exclusions, the Illinois Supreme Court has previously held that the standard CGL pollution exclusion bars coverage for bodily injuries caused by traditional environmental pollution (essentially industrial emissions of pollutants), but not by more commonplace emissions (such as carbon monoxide from a residential furnace or excess chlorine in a backyard swimming pool). See American States Insurance Co. v. Koloms, 177 Ill. 2d 473 (Ill. 1997). In Griffith Foods, the District Court initially concluded that the pollution exclusion did not apply because the companies emitted EtO pursuant to a permit issued by the IEPA. The District Court reached this latter conclusion by applying Erie Insurance Exchange v. Imperial Marble Corp., 957 N.E.2d 1214 (Ill. App. Ct. 2011), an Illinois intermediate appellate court decision finding it ambiguous whether a CGL policy’s pollution exclusion barred coverage for emissions authorized by regulatory permit. Read the full story...
Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

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