Dispute Erupts Into Public Over Castro Theater Rehab Project Costs
September 08, 2026 —
Richard Korman - Engineering News-RecordAs it was about to start an arbitration of final payments on a complex theater renovation, the entertainment company that leases San Francisco's landmark Castro Theatre has filed a state court trademark violation lawsuit seeking to bar the contractor from publicizing as a success its work for the owner on that and other projects.
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Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
New York Moves to Tighten Third-Party Practice: Key Changes to CPLR 1007
March 31, 2026 —
Sophia L. Cahill - SheppardEffective April 18, 2026, the New York Legislature enacted the Avoiding Vexatious Overuse of Impleading to Delay (“AVOID”) Act, amending CPLR 1007—the statute that governs third-party practice. The amendment sharply limits when and how defendants can commence third-party actions, curbing the expansive discretion they previously enjoyed and targeting the late-stage impleaders that often upend case schedules.
What Changes
Before the AVOID Act was signed into law on December 19, 2025 (and subsequently modified by Chapter Amendments A9502 and S8809, signed by Governor Hochul on February 13, 2026[1]), CPLR 1007 gave defendants broad latitude to implead “any person who is or may be liable” for all or part of the plaintiff’s claim. CPLR 1007 specified no outside time limit for the initiation of a third-party claim; courts assessed only whether a defendant’s delay was undue—such as impleading months after the note of issue—and whether the plaintiff would suffer prejudice if the third-party action were not severed.
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Sophia L. Cahill, SheppardMs. Cahill may be contacted at
scahill@sheppard.com
Integration Can Inoculate in Utah
July 20, 2026 —
Mark O. Morris - Snell & WilmerThe Utah Court of Appeals recently reaffirmed, in the construction context, Utah’s strict approach to enforcing integration clauses to preclude parol evidence and other legal theories that would vary the written terms of a contract. In Reid v. All Surface LC, 2025 UT App 134, decided last September, the court affirmed in all respects the trial court’s grant of summary judgment based on the strength of an integration clause against a homeowner who sued a contractor for breach of contract, breach of the covenant of good faith and fair dealing, fraud, negligent misrepresentation, civil conspiracy, negligence, and breach of the implied warranty of habitability. More recently, however, the same court rejected those same arguments in Tidwell v. Jensen, 2026 UT App 13 as to tort claims arising from a used car sale.
The facts in Reid were sympathetic to the plaintiff. After being told she had a mold issue near a defective basement shower, the plaintiff solicited bids. A remediation contractor advised that while it could address the mold, the shower replacement should be handled by someone else. The plaintiff contacted All Surface LC, a shower replacement contractor. During an interview, the sales representative stated that All Surface could “do full mold remediation, tear everything out, and reframe the shower.” The plaintiff ultimately retained All Surface, expecting it would both resolve the mold issues and replace the shower.
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Mark O. Morris, Snell & WilmerMr. Morris may be contacted at
mmorris@swlaw.com
Ayushi Neogi Published in ADC Defense Comment on Arbitration in Evolving Plaintiff-Friendly Landscape
May 12, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Senior Counsel Ayushi Neogi has authored an article in the Association of Defense Counsel of Northern California and Nevada’s Defense Comment magazine examining the shifting landscape of arbitration following the Ending Forced Arbitration Act.
Titled “Compelling Arbitration in a Post-Ending Forced Arbitration Act, Plaintiff-Friendly Landscape,” the article analyzes how recent legislative changes are reshaping arbitration strategy, particularly as employees gain greater ability to bypass arbitration in certain claims. Neogi provides practical insight into how courts are responding and what this means for defense counsel navigating increasingly complex and plaintiff-friendly environments.
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Gordon Rees Scully Mansukhani
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
Southwest Super Lawyers Recognizes 50 Snell & Wilmer Attorneys in 2026 Rankings
June 15, 2026 —
Snell & WilmerPHOENIX (April 22, 2026) – Snell & Wilmer is pleased to announce that 50 attorneys in the Phoenix and Tucson offices have been selected for inclusion in the 2026 Southwest Super Lawyers publication. Of those 50, four were recognized for the first time and 24 were recognized as Southwest Rising Stars. Super Lawyers is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations, and peer evaluations. Super Lawyers was first published in 1991 by Law & Politics and was acquired by Thomson Reuters, Legal in February 2010. Thomson Reuters is a leading source of information for businesses and professionals. The below Snell & Wilmer attorneys have been selected for inclusion in the 2026 Southwest Super Lawyers rankings.
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Snell & Wilmer
Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions
May 12, 2026 —
David Adelstein - Florida Construction Legal UpdatesContract drafting and interpretation matters.
A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case
here where the appellate court reversed based on the prefatory language.
But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:
Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Delay Matters: Florida’s Fourth DCA Reverses Hurricane Irma Dismissal
June 08, 2026 —
Andrea DeField, Machaella Reisman & Cary D. Steklof - Hunton Insurance Recovery BlogThe mantra “delay, deny, defend” is frequently referenced in discussions of insurance claims handling, though insurers will invariably disavow these tactics. While it would be facially improper for an insurer to delay a coverage decision to gain a tactical advantage, empirical examples nonetheless exist. This very dynamic was addressed by Florida’s Fourth District Court of Appeals when it handed policyholders a win in
Hypoluxo Mariner’s Cay Condo. Assoc’n, Inc. v. Underwriters at Lloyd’s London, No. 4D2024‑2250 (Fla. 4th DCA Apr. 1, 2026), reversing a trial court order dismissing a condominium association’s Hurricane Irma coverage lawsuit against its property insurer.
Delay to Run the Statute of Limitations
Following Hurricane Irma, a condominium association suffered roof and exterior envelope damage, reported an insurance claim, and submitted a sworn proof of loss to its property insurer in compliance with Florida Statute § 627.70132 (2020). The statute establishes a timeframe within which a policyholder must submit a claim for hurricane damage.
Reprinted courtesy of
Andrea DeField, Hunton Andrews Kurth LLP,
Machaella Reisman, Hunton Andrews Kurth LLP and
Cary D. Steklof, Hunton Andrews Kurth LLP
Ms. DeField may be contacted at adefield@hunton.com
Ms. Reisman may be contacted at reismanm@hunton.com
Mr. Steklof may be contacted at csteklof@hunton.com
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