Leaders in Dispute Resolution Need to Make Unbiased Decisions for Mediation to Succeed
March 31, 2026 —
Rick G. Erickson - Snell & WilmerAs a mediator helping to settle construction disputes and as an arbitrator deciding outcomes of these disputes, I found certain lessons to be especially helpful after graduating last summer from the Executive Education program at Harvard Kennedy School (HKS). The exceptional HKS curriculum included courses focused on negotiation strategies for multiparty disputes, decisive leadership during crisis, and human behavior affecting dispute resolution.
In particular, our HKS class debated the impact of cognitive bias in dispute resolution, and we studied a central theme that decision-making is universally scientific. That is, parties making decisions in dispute resolution exhibit and rely upon empirical factors that good mediators and decision makers should appreciate and understand. Bias, for example, can cause key players to discount persuasive witnesses, admissible evidence, and reliable expert opinions that influence the outcome of a construction dispute. Biased decision makers may also choose to withhold key information from the mediator, as though doing so will help rather than hurt what is supposed to be an objective and diplomatic process.
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Rick G. Erickson, Snell & WilmerMr. Erickson may be contacted at
rerickson@swlaw.com
GRSM Defeats Class Certification in Precedent-Setting HOA Management Case
September 15, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Partners Fletcher Alford and Kevin Liu and Associate Jigar Desai secured a favorable outcome on behalf of an HOA management company in a precedent-setting class action before the U.S. District Court for the Eastern District of California, obtaining denial of the plaintiff’s motion for class certification and dismissal without prejudice of the three claims at issue.
The plaintiff alleged that the defendant received earnings credit payments from a bank in exchange for maintaining HOA deposit accounts and failed to disclose the arrangement to its HOA clients. The plaintiff sought more than $40 million in damages, asserting five claims: (1) breach of contract for failing to act in class members’ best interests by not disclosing the alleged earnings credit arrangement; (2) violation of California’s Unfair Competition Law (UCL) based on alleged violations of California Civil Code §§ 5375, 5375.5, and 5380; (3) breach of fiduciary duty based on the alleged undisclosed arrangement; (4) violation of the UCL for unfair business practices arising from the alleged nondisclosure; and (5) unjust enrichment. The plaintiff sought class certification under Federal Rule of Civil Procedure 23(b)(2) and 23(b)(3) only as to its second, third, and fourth causes of action.
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Gordon Rees Scully Mansukhani
USDOT’s DBE Interim Final Rule: How It Affects Current and Out-to-Bid DOT and Airport Projects
June 15, 2026 —
Zachary F. Jacobson - The Construction SeytIn our April 16, 2026 post, we discussed the U.S. Department of Transportation’s Interim Final Rule (IFR) concerning Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certification, specifically as it concerns transportation and airport projects in California.
This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals? The answer is that the IFR did more than change who qualifies as a DBE. It also changed how federally funded transportation and airport projects must be handled during the re-evaluation period. This affects active contracts, pending procurements, airport projects, design-build teams, and anyone relying on old assumptions about DBE goals and counting of DBE and ACDBE credit.
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Zachary F. Jacobson, Seyfarth Shaw LLPMr. Jacobson may be contacted at
zjacobson@seyfarth.com
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 BlogIn 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.
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Louisiana Legislature Enacts Act 932 – Significant Changes to Insurer Bad-Faith Exposure for Failure to Settle
July 13, 2026 —
Tabitha R. Durbin & Jennifer E. Michel - Lewis BrisboisThe Louisiana Legislature has enacted Act 932 (formerly House Bill 1162), which became law this week without the Governor's signature pursuant to the Louisiana Constitution, after expiration of the applicable constitutional review period. Act 932 makes several important amendments to Louisiana's insurer bad-faith statute and appears intended, at least in part, to address issues arising from the Louisiana Supreme Court's decision in Kelly v. State Farm Fire & Casualty Co., 169 So.3d 328 (La. 2015). The Act also makes changes regarding claim payments involving licensed contractors. The Act takes effect on August 1, 2026.
Key Takeaways
Act 932:
- Limits certain bad-faith causes of action (bad faith failure to settle) involving personal injury and bodily injury claims where good-faith disputes exist or where an insurer has not been afforded sufficient opportunity to respond to a settlement demand.
- Requires insurers and adjusters to verify a contractor's Louisiana license status before issuing claim payments when a contractor is named as a payee on a check for repair or restoration of immovable property.
- Creates a statutory safe harbor protecting insurers from bad-faith penalties and attorney fees when payment delays result from an inability to verify a contractor's license, provided specified documentation and notice requirements are met.
Reprinted courtesy of
Tabitha R. Durbin, Lewis Brisbois and
Jennifer E. Michel, Lewis Brisbois
Ms. Durbin may be contacted at Tabitha.Durbin@lewisbrisbois.com
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com
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AI Adoption in Construction: A UK Practitioner’s View
April 20, 2026 —
Aarni Heiskanen - AEC BusinessI recently talked with
Chris Brady, an AI adoption consultant based in Birmingham, UK, who has spent 18 years working in construction. Two years ago, he began integrating AI into his work with contractors and SMEs, initially as an add-on service, and it has since become his main business.
Chris now runs
Metrix, an AI consultancy focused on UK construction companies, alongside two other ventures: Trade Upskill, an education platform for construction professionals, and ctrldash.ai, a compliance-automation SaaS for construction SMEs, both of which are soon to launch.
What struck me most in our conversation was how grounded his approach is, built on years of direct industry experience rather than arriving from outside with a technology solution looking for a problem.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict
May 26, 2026 —
Gray Development GroupPHOENIX, 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.
We’re Burning Tokens to Clean Up Bad PDFs
August 24, 2026 —
Aarni Heiskanen - AEC BusinessLast Thursday, researchers from Tampere and Aalto universities reported on preliminary results of two AI- and digitalization-related projects. One project demonstrated how AI can automate the Bill of Materials process; the other tried to quantify the impact of data-driven construction and AI. The conclusion was that AI-powered automation can dramatically increase productivity, but unevenly. However, the substantial benefits may come from better outcomes rather than project efficiency.
Various standards, company-specific practices, project-specific schemas, and traditions are designed for humans to comprehend. 2D drawings and text documents as PDF files, Excel sheets, and design and planning software have the information, but not the data in ideal form for automation.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
