The AI Knows Too Much: When Employees Feed Trade Secrets into Generative AI Tools
April 14, 2026 —
Kazim A. Naqvi & John V. Mysliwiec - SheppardEvery time an employee pastes proprietary source code, a customer list, or a confidential business strategy into
ChatGPT,
Claude, or
Google Gemini, they may be quietly dismantling the legal protections that make those secrets worth protecting. Courts and regulators are only beginning to grapple with this problem, and right now, the burden of preventing it falls squarely on employers.
The Legal Stakes
Under the federal
Defend Trade Secrets Act (“DTSA”) and the
Uniform Trade Secrets Act (“UTSA”) as adopted across most states, a trade secret plaintiff must show that the information at issue was subject to reasonable measures to maintain its secrecy. Courts have historically credited measures like confidentiality agreements, physical access controls, and employee training—but those safeguards were designed for a world of thumb drives and disgruntled employees. They were not built for a world where a well-meaning engineer can, in seconds, transmit an entire corpus of proprietary data to a third-party AI platform operating under terms of service that may permit the provider to use inputs for model training.
Reprinted courtesy of
Kazim A. Naqvi, Sheppard and
John V. Mysliwiec, Sheppard
Mr. Naqvi may be contacted at knaqvi@sheppard.com
Mr. Mysliwiec may be contacted at jmysliwiec@sheppard.com
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Applying Jury Verdict Method in Quantifying Damages Due to Defective Specifications
March 31, 2026 —
David Adelstein - Florida Construction Legal UpdatesAn older case deals with three important considerations: (1) defective specifications; (2) whether the defective specifications were misleading or misrepresentative; and (3) applying the jury verdict method in quantifying damages.
In Metric Construction Co., Inc. v. U.S., 80 Fed. Cl. 178 (Fed. Cl. 2008), a contractor was contracted by the federal government to construct a warehouse. There were defects in the structural steel design specifications underlying the standing seam metal roof installed by the contractor and, as a result, the roof system leaked causing damage. The contractor incurred significant costs in repairing the damage, and pursued recovery of these costs against the government. The contractor claimed the structural steel design serving as the framework for the metal roof was defective and misleading and caused the leaks.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
When Your Scheduler Hallucinates: Managing AI Risk on the Job Site
March 03, 2026 —
Jason Loring - ConsensusDocsArtificial intelligence has moved from the conference room to the construction site. Contractors are using AI-powered tools to predict schedule delays, monitor safety through drone footage, optimize equipment maintenance and flag potential hazards in real time. These tools deliver genuine efficiency gains, but they also introduce risks that most construction contracts do not anticipate and many project teams aren’t yet equipped to manage.
The problem is that AI tools are probabilistic and not determinative, meaning that they can “hallucinate”: generating confident, but completely wrong, information. Your AI scheduling software might therefore predict a delay that never materializes, causing unnecessary resource mobilization. Your drone monitoring might flag a nonexistent safety hazard, stopping work and costing productivity. Or worse, it might miss a real hazard entirely.
Read the full story...Reprinted courtesy of
Jason Loring, Jones Walker LLPMr. Loring may be contacted at
jloring@joneswalker.com
Pay-If-Paid: What You Need to Know Before Signing on the Dotted Line
August 03, 2026 —
Christian Fernandez & Matthew Racioppo - Snell & WilmerBuried deep in the fine print of a subcontract, a pay-if-paid clause may be looming. If you are a subcontractor or supplier, misreading these clauses can put your cash flow at risk. If you are an owner or general contractor, drafting them incorrectly can leave you with obligations you never intended — or unenforceable protections you were counting on.
It is more important than ever to understand when pay-if-paid clauses hold up and when they do not, as well as recent litigation and drafting trends. Whether you are negotiating a new agreement, reviewing your standard form contracts, or staring down a payment dispute, understanding how Arizona law treats pay-if-paid clauses is essential. In this article, we break down key considerations, walk through the legal standards Arizona courts apply, and offer practical tips to consider to help you protect your payment rights on the next project.
Reprinted courtesy of
Christian Fernandez, Snell & Wilmer and
Matthew Racioppo, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com
Mr. Racioppo may be contacted at mracioppo@swlaw.com
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Urban Digital Twins: How Virtual Cities Could Help Build Smarter Cities
August 11, 2026 —
Gravel2Gavel Construction & Real Estate Law BlogTraffic congestion, endless construction, flooded streets and power outages. For city leaders and residents alike, these disruptions are simply part of daily urban life. But an emerging tool, known as the urban digital twin, could help cities anticipate problems before they occur by allowing planners to simulate responses, stress-test infrastructure, and evaluate decisions before implementing them in the real world.
What Is an Urban Digital Twin?
An
urban digital twin is a dynamic, data-driven virtual model of a real city. It uses AI analytics and combines 3D modeling with real-time data and information from sources such as IoT sensors, traffic cameras, satellite feeds, infrastructure databases, utility networks, and environmental data including weather systems and heat maps to create a continuously updated digital representation of the urban environment that mirrors infrastructure, movement and systems in real time. In other words, it is a living digital replica of a city.
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Pillsbury
Las Vegas Partner Jeffrey Saab and Team Leader D. Ryan Efros Secure a $0.00 Settlement on a Multimillion-Dollar Construction Defect Case!
April 14, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPPartner
Jeffrey Saab and Team Leader
D. Ryan Efros’ client was a construction supervisor on a palatial mansion. The homeowners claimed millions of dollars in damages and asserted the client was a general contractor (GC) and so responsible for the alleged defects. Jeff and Ryan took more than 15 depositions, reinforcing their trial strategy theme: that the client was not a GC, but Plaintiffs were. They secured significant concessions from Plaintiffs, pressed Plaintiffs’ own negligent construction choices, and made the risk of trying the case intolerable. On the eve of trial, Plaintiffs backed down, settling out Jeff and Ryan’s client for $0.00.
Read the full story...Reprinted courtesy of
Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
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.
Tariffs As Taxes — What Learning Resources, Inc. v. Trump Means for Contractors and the WSDOT Specifications
March 17, 2026 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCIn October 2025, we explored a pressing question for public works contractors:
should post-contract award tariffs be reimbursable? The crux of that analysis was whether tariffs imposed after contract award constitute a tax under the Washington State Department of Transportation (WSDOT) Standard Specifications, triggering reimbursement under Section 1-07.1(5)B (“tax changes”).
Since then, a landmark Supreme Court ruling in Learning Resources, Inc. v. Trump has clarified the legal nature of tariffs in a way that could significantly affect this debate.
In Learning Resources, Inc. v. Trump, 607 U.S. (2026), the U.S. Supreme Court addressed whether the President had the authority under the International Emergency Economic Powers Act (IEEPA) to unilaterally impose broad tariffs on imports.
Read the full story...Reprinted courtesy of
Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
