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
John Palmeri and Peter Siachos Named to 2026 Lawdragon 500 Leading Lawyers in America
February 17, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani is proud to announce that Partners John Palmeri and Peter Siachos have been named to the Lawdragon 500 Leading Lawyers in America for 2026. Their inclusion reflects their extensive trial experience, national leadership roles, and sustained excellence representing clients in complex, high-stakes matters.
Now in its 21st year, the Lawdragon 500 Leading Lawyers in America guide honors attorneys who lead the profession through exceptional advocacy, dedication to clients, and influence within their firms and communities. Selected through yearlong research, peer discussion, and robust nominations, the guide recognizes lawyers who continue to shape the legal landscape at the highest levels.
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Gordon Rees Scully Mansukhani
Under Construction – November 2025
January 06, 2026 —
Snell & WilmerLetter From the Editor
Welcome to the fall edition of Snell & Wilmer’s Under Construction Newsletter. As brisk autumn air sets in, it’s an ideal moment to shore up the basics — both in your projects and in your grasp of the continually shifting field of construction law.
In this newsletter, we explore a variety of topics related to current construction trends and legal news that may be relevant and helpful to you and your business. We have assembled a selection of articles that include discussions of state-specific issues including how Idaho’s Contractor Registration Act bars unregistering contractors from enforcing contracts or filing liens, though the state Supreme Court allows remedies for post-registration work if severable. This edition discusses how contractors can maximize cash flow and profits by substituting security for retainage on public projects. We also highlight the California Court of Appeals discussion and latest decision relating to subcontractor substitution protections under Public Contract Code §4107. We round out our newsletter summarizing how the Colorado Supreme Court clarified that the economic loss rule bars tort claims for purely economic harm arising from contracts — even when alleging willful and wanton misconduct.
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Snell & Wilmer
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.
Newmeyer Dillion Ranked in Chambers Spotlight California 2026 Guide
May 26, 2026 —
Newmeyer DillionNEWPORT BEACH, Calif. – May 14, 2026 - Prominent business and real estate law firm Newmeyer Dillion has been ranked in Chambers Spotlight California 2026 guide and recognized as a leading firm in Litigation: General Commercial for Orange County.
Newmeyer Dillion was selected based on an independent and in-depth market analysis, coupled with an assessment of the firm’s experience, expertise and caliber of talent where the firm stood out for its exceptional work and is recognized in Litigation: General Commercial.
Managing Partner Paul Tetzloff expressed the firm's gratitude: “It is an honor for our firm to be recognized by Chambers and Partners in their Spotlight California 2026 guide. This acknowledgment reflects our commitment to providing high quality legal services tailored to the unique needs of our clients.”
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Newmeyer Dillion
Contract Interpretation – Determining What the Contract Requires
March 24, 2026 —
David Adelstein - Florida Construction Legal UpdatesA good ole dispute on contract interpretation in government contracting. Contract interpretation disputes happen all the time in every jurisdiction under the sun. Think about that. Now, what’s the best way to avoid a contract interpretation dispute? Naturally, invest in the contract language and fully understand the scope of work. Make all of this clear. But, of course, this isn’t foolproof meaning you could still be doing this and you could still find yourself in a contract interpretation dispute. Although, if you are doing this, and being proactive, the contract interpretation disputes should be minimal and more streamlined.
In Liberty Technical Services, LLC v. Department of Veterans Affairs, CBCA 8385, 2026 WL 407656 (CBCA 2026), the dispute centered on whether the government owed the contractor for certain, necessary equipment (largely controllers, but also tanks and pumps) not specified in the contract. The government countered that this should be a non-issue because the contractor always acknowledged it was responsible for furnishing the unspecified, necessary equipment, and the contractor did actually provide the equipment without direction from the government. Each party claimed the contract was unambiguous when construed in context.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
White and Williams LLP is Proud to Host the 20th Anniversary Virginia Barton Wallace Award and Reception
May 05, 2026 —
White and Williams LLPWhite and Williams LLP is proud to host the 20th Anniversary Virginia Barton Wallace (VBW) Award and Reception, which will celebrate this year’s honoree,
The Rendell Center for Civics & Civic Engagement. This award was created to celebrate the remarkable career of Virginia “Ginny” Barton Wallace, the first woman to be elected to partnership not only at White and Williams but also at any law firm in Philadelphia. The VBW Award is presented to a woman or organization that embodies the same qualities that Ginny possessed: leadership, drive, exemplary work ethic, overall excellence in her field, or an ability to inspire other women to succeed.
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White and Williams LLP
Data Center Construction and the AEC Partner of the Future
April 14, 2026 —
Aarni Heiskanen - AEC BusinessDuring my involvement in designing mobile phone production facilities, the speed of design and construction was critical. Any delay could directly translate into lost revenue. That same logic now applies to data centers, though the stakes are much higher. Instead of optimizing physical production lines, we are constructing infrastructure for digital production.
The global data center capacity is expected to nearly double by 2030, and with this level of demand, the traditional project-by-project delivery model begins to show its limitations.
Data centers are no longer isolated projects in the traditional sense. They are evolving into repeatable, scalable production systems, making them ideal environments for AEC process and business model innovation.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
