Insured’s Bad Faith Claim Survives Summary Judgment
July 13, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026).
Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the deductible.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Modern Building-Sundt $17M Claim Is Stranded by Hospital Bankruptcy
April 27, 2026 —
Richard Korman - Engineering News-RecordA $16.9-million claim for work on a hospital addition by a joint venture of contractors Modern Building Co. and Sundt Construction is stuck and delayed indefinitely following the California hospital's December bankruptcy filing.
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Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
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.
Thomson Reuters Construction Law (Virginia Practice Series)
March 31, 2026 —
Jennifer L. Harris & Michael A. Branca - Peckar & Abramson, P.C.P&A Partners Michael A. Branca and Jennifer L. Harris have authored the most recent edition (2025) of Construction Law (Virginia Practice Series), part of Thomson Reuters’ ProView legal reference library. Associate
Julia Loudenburg also provided substantial assistance for this edition.
Construction Law includes summaries and analysis of statutes, regulations, and cases. It covers all major legal issues, including:
- Licensing
- Building code compliance
- Public-private partnerships
- Public contract bidding and performance
- Dispute resolution
- Damages
- Third-party liability
- Liens and bonds
Reprinted courtesy of
Jennifer L. Harris, Peckar & Abramson, P.C. and
Michael A. Branca, Peckar & Abramson, P.C.
Ms. Harris may be contacted at jharris@pecklaw.com
Mr. Branca may be contacted at mbranca@pecklaw.com
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It’s More Than a Feeling: Proving Construction Damages and When You Should Hire an Expert to Help Do It
July 27, 2026 —
Bradley E. Sands & Katie McCracken - ConsensusDocsWhen you win a bid, you might be singing that everything is going your way. Then something goes wrong. The owner hands you defective plans, sits on RFI responses or other critical information, or otherwise upends the work. The costs pile up through no fault of your own. You feel wronged, and you want to be made whole. But a feeling that you got burned is not enough. To recover, that feeling has to become something the law recognizes as damages. So, what are damages, and how do you prove them?
At bottom, contract damages are the money that puts the non-breaching party (i.e., the party that doesn’t breach the contract) in the position it would have occupied had the contract been performed.
Reprinted courtesy of
Bradley E. Sands, Jones Walker LLP and Katie McCracken, Summer Associate, University of Georgia School of Law
Read the full story...Mr. Sands may be contacted at
bsands@joneswalker.com
Construction Seyt Named a Top Construction Blog by FeedSpot
March 31, 2026 —
Seyfarth Shaw LLP - The Construction SeytSince 2019, we have strived to bring our readers practical, useful insights on recent trends shaping our industry. Whether you are a contractor, designer, developer, attorney, or industry professional, our goal is to equip you with the knowledge to navigate your business with that much more confidence. We are honored that “The Construction Seyt” has been named by FeedSpot as a “Best Construction Blog” to follow for 2026.
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Seyfarth Shaw LLP
The ROI of Estimating Accuracy in Preconstruction
September 15, 2026 —
Aaron Kivett - Construction ExecutivePrecision is the foundation of profitability in construction. Even minor quantity or pricing mistakes can swing bids anywhere from 5-15%, leading to project delays, unprofitable jobs or margin erosion through change orders. And worse, these losses can damage client trust and jeopardize long-term relationships that drive repeat business and future bids. Consistently
estimating accurately builds confidence, speeds up bidding and positions your company to win more profitable projects.
Estimating accuracy is where profit is either protected or lost. In construction, you make your biggest financial decisions before a project ever starts. Once a bid is won, most of the project’s cost structure is locked in. If the estimate is wrong, no amount of execution can fully fix those mistakes. That makes estimating accuracy a business issue, not just an operations issue.
Reprinted courtesy of
Aaron Kivett, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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PJM’s Reliability Backstop Procurement Proposal—Fast-Track Capacity to Meet Rising Large-Load Demand
May 12, 2026 —
Stephen J. Humes, Alicia M. McKnight, Jason Drogin Atwood & Andrew H. Jacobs - Gravel2GavelIn January, we discussed the Statement of Principles jointly signed by the National Energy Dominance Council and governors across the mid-Atlantic region—framing accelerating demand (especially from large-scale data centers) as an emergency reliability issue for PJM Interconnection, L.L.C. (PJM), the nation’s largest power grid operator. That policy signal is now becoming a near-term, accelerated procurement and contracting exercise. On April 8, 2026, PJM notified stakeholders of a critical issue fast path reliability backstop procurement process. PJM subsequently released a request for information (RFI) with respect to a proposed Reliability Backstop Procurement (RBP)—a one-time mechanism intended to attract significant new capacity to address projected reliability shortfalls driven by large-load growth.
RBP compresses what is often a multiyear market and regulatory conversation into a fast-moving set of commercial choices. Developers, large loads, utilities and capital providers should be preparing now for (i) an accelerated bilateral contracting window and (ii) a standardized PJM-led backstop procurement if bilateral deals do not clear enough capacity.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury,
Jason Drogin Atwood, Pillsbury and
Andrew H. Jacobs, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Atwood may be contacted at jason.atwood@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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