Agent Not Liable for Loss Given Insured’s Vague Instructions for Coverage
April 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Appellate Court affirmed the district court’s grant of summary judgment to the insured’s agent because there was no breach of duty. Jon Van Order v. Hauk, et al., 2025 Ill. App. Unpub. LEXIS 2378 (Ill. Ct. App. Dec. 23, 2025).
The insured began renovating a vacant home in October 2018. He met with agent Joseph Hauk and explained the property was vacant and would be going through renovations for the next several months. Hauk then procured a policy through Shelter Insurance Company insuring the vacant property against several specified perils. The policy provided coverage for water damage if “[t]he exterior of the building sustained a covered loss” and “that loss created an opening through which the water entered.” Damage caused by escaping water from within a plumbing system was excluded if: (1) the damage was caused by a “continuous or repeated leakage over a period of fourteen days or more” or (2) the insured premises had been vacant for 30 consecutive days immediately preceding the loss.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Contract Disputes Act and Jurisdictional Requirements
March 17, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen dealing with a claim on a federal construction project, there are a couple of key background jurisdictional points. These points were briefly highlighted in the recent appeal, Mega Star Logistics Service Co. v. Department of State, CBCA 8232, 2026 WL 253738 (CBCA 2026). Here are the two points.
FIRST, when it comes to jurisdiction, for a board of contract appeals “to exercise jurisdiction over a claim, the CDA [Contract Disputes Act] requires the contractor to submit a written claim to the contracting officer for a COFD [contracting officer final decision], with a subsequent appeal of the COFD or deemed denial if the CO [contracting officer] does not issue a COFD.” Thus, you need to submit a formal claim under the Contract Disputes Act to the contracting officer to get a final decision from the contracting officer (or the contracting officer waiving the final decision by not timely furnishing one). Mega Star Logistics, supra.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
LA Fire Victims Can Pursue City Utility Claims, Judge Rules
March 10, 2026 —
Jef Feeley & Maxwell Adler - BloombergThe water and power utility that serves the city of Los Angeles must face hundreds of lawsuits faulting its response to the massive 2025 wildfire that leveled one of the city’s premier seaside neighborhoods and caused tens of billions of dollars in damage.
In a significant victory for fire victims, Los Angeles Superior Court Judge Samantha Jessner concluded in a
written ruling Thursday that a unique California law allows property and business owners to pursue claims that the Los Angeles Department of Water and Power failed to supply enough water to fight the blaze that consumed the Pacific Palisades area.
Over strong objections from lawyers for the nation’s largest public utility, Jessner finalized a tentative ruling she issued last week concluding victims have a legal basis to move forward with allegations a city reservoir drained for repairs left fire hydrants with inadequate water pressure and helped the wind-whipped blaze get out of control.
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Jef Feeley, Bloomberg and
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AI & Digital Tools on Construction Projects: Contract Risks to Address Before Peak Season
April 08, 2026 —
Meghan Douris - The Construction SeytArtificial intelligence and advanced digital tools are no longer experimental on construction projects. In Q1 of 2026, we can already see how they are already influencing schedules, estimates, submittals, safety reporting, and day‑to‑day project documentation. As peak construction season approaches, many teams are accelerating adoption of AI to gain efficiency.
What often lags behind, however, is the contract framework governing how those tools are used—and how their outputs are treated when something goes wrong.
On sophisticated construction projects, that gap can quickly become a dispute driver.
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Meghan Douris, Seyfarth Shaw LLPMs. Douris may be contacted at
mdouris@seyfarth.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.
New York Team Secures Dismissal of Premises Liability Action Against Client
May 26, 2026 —
Lewis BrisboisNew York Associate Nicole Koch and Partner Jennine Gerrard recently secured a complete dismissal of a plaintiff’s claims for injuries following a fall in front of a client’s business at an outdoor mall.
The plaintiff alleged that she was walking on the sidewalk outside of the client's hair care supply store in the Bronx in May 2024 when she tripped and fell on a broken/defective portion of the sidewalk. As a result of the accident, the plaintiff suffered injuries to her spine, hip, wrist, and both knees. She proceeded to file suit in New York County Supreme Court against Lewis Brisbois’ client and the landlord for the property.
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Lewis Brisbois
Insurance Coverage and Bad Faith Practice Earns Prestigious Band One Ranking in the Chambers USA 2026 Guide
June 22, 2026 —
White and Williams LLPWhite and Williams LLP's Insurance Coverage and Bad Faith Practice Group is pleased to share that it has received a Band One ranking in the Chambers USA 2026 Guide for Insurance, Pennsylvania. Additionally, Patricia B. Santelle, Chair Emeritus, Randy Maniloff, Partner, and Robert Walsh, Partner have all been individually ranked on the Chambers USA 2026 Guide in Insurance in Pennsylvania.
The Insurance Coverage and Bad Faith Practice's consistent focus on their clients and handling of complex claims were just two of the attributes contributing to their elite Band One ranking, after 11 years on the Chambers USA list. When asked about their experience working with White and Williams’ Pennsylvania Insurance Practice, one client stated, “What distinguishes White and Williams is the high level of service and accountability. The team is responsive, organized and reliable, which allows our internal teams to move quickly and make informed decisions with confidence.”
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White and Williams LLP
Doctrine of Substantial Performance When It Comes to Payment
July 27, 2026 —
David Adelstein - Florida Construction Legal UpdatesA recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:
Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”
Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (internal citations omitted).
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
