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.
Seattle Team Obtains Summary Judgment in Real Estate Broker Professional Liability Action
July 20, 2026 —
Lewis BrisboisSeattle Partner Kathleen A. Nelson and Associate Synova M. L. Edwards prevailed on a hotly contested motion for summary judgment in Whatcom County, Washington court in a real estate broker professional liability action.
The plaintiff filed an action against Lewis Brisbois' clients, a real estate agent and brokerage firm, among several others, including the title company, purchasers and others related to the sale of real property following his complicated and long running divorce action. These claims primarily arose out of the clients’ reliance on an order signed by the court in the underlying divorce action. The order allowed the clients to execute the purchase and sale agreement, as the plaintiff was non-cooperative.
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Lewis Brisbois
When Rule 702 Motions Fail: A Close Look at AECOM v. Flatiron
February 02, 2026 —
Olivia Barden - Colorado Construction Litigation BlogIn AECOM Tech. Servs., Inc. v. Flatiron | AECOM, LLC, 2024 WL 22640 (D. Colo. 2024), the United States District Court for the District of Colorado addressed when expert testimony is not subject to be limited or excluded pursuant to Federal Rule of Evidence 702.
Background
In 2015, AECOM Technical Services, Inc. (“AECOM”) and Flatiron | AECOM, LLC (“Flatiron”) entered into an agreement, in which they agreed to work together to assemble a design/build team for the purposes of submitting a proposal to the Colorado Department of Transportation’s (“CDOT”) construction project known as C-470 Tolled Express Lanes Segment 1 Design-Build Project (the “Project”). AECOM provided the design and engineering services, and Flatiron submitted the proposal to CDOT. On or about June 16, 2016, CDOT awarded Flatiron the Project. Flatiron later claimed that AECOM’s design failed to follow basic engineering and project requirements.
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Higgins, Hopkins, McLain & Roswell, LLC
White and Williams LLP Attorneys Recognized as PA and DE Super Lawyers
July 06, 2026 —
White and Williams LLPWhite and Williams LLP is proud to announce that eight attorneys in the firm’s Philadelphia office and one attorney in the firm's Delaware Office have been recognized on the 2026 Super Lawyers® and Rising Star lists. This recognition highlights our attorney's exceptional legal acumen and their commitment to client service excellence.
Lawyers are selected for inclusion in Pennsylvania and Delaware Area Super Lawyers® and Rising Stars through a process that considers independent research, peer recognition and the professional achievements of attorneys from more than 70 practice areas. Approximately 2.5% of lawyers in each state are selected by the research team at Super Lawyers® to receive this honor.
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White and Williams LLP
Why Construction Tendering Needs Specialized Intelligence
March 31, 2026 —
Aarni Heiskanen - AEC BusinessThe construction industry has never lacked data; it lacks usable intelligence at the moments that matter most. In the high-stakes phases of tendering and pre-construction, the industry still relies on manual “Control-F” searches through thousands of pages of unstructured documents.
I recently spoke with
Herman Smith, a civil engineer and former Chief Digital Officer at Multiconsult, who left the corporate world to solve this specific bottleneck. His startup,
Volve, isn’t just another AI wrapper; it is a specialized “drill” designed to penetrate the complexity of construction documentation.
The Paradox of Digitalization without a Productivity Boost
For years, the AEC industry has faced a frustrating paradox: we have more digital tools than ever, yet productivity has not improved. Herman observed this from the inside, managing hundreds of unique software licenses while seeing companies struggle to adapt to new workflows.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Late Notice Bars Insured’s Claim for Wind Damage
June 29, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court found that a six-month delay in reporting damage from wind did not comply with the policy’s notice requirements. Touchmark Hotel Group, LLC v. Mt. Hawley Ins. Co., 2026 U.S. Dist. LEXIS 61910 (S.D. N. Y. March 24, 2026).
A storm caused damage to Touchstone’s hotel on January 4, 2023. Touchstone’s corporate representative, Rohit Patel, testified that he was not at the property on the day of the storm. In a telephone call the next day, the manager of the property reported to Patel that he observed detached shingles from the roof the hotel in the parking lot. Patel testified that he did not file a claim at that time because Touchmark’s employees did not detect any water leakage in the building and because he did not believe that the cost of the damage from the storm would exceed the policy’s deductible.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Idaho Contractor Registration: Lessons from the Ward v. Bishop Decision
April 20, 2026 —
Tara Martens Miller - Snell & WilmerThe Idaho Supreme Court’s recent decision in Ward v. Bishop Constr., Ltd. Liab. Co., No. 51118, 2025 Ida. LEXIS 143 (Dec. 31, 2025) offers valuable guidance for contractors and construction attorneys navigating the Idaho Contractor Registration Act (ICRA). The December 2025 ruling clarifies critical questions about when and how defendants may raise contractor registration defenses, the weight of pretrial stipulations, and the consequences of procedural missteps in construction litigation. This article examines the key takeaways from the decision and offers practical actions for consideration by those working in Idaho’s construction industry.
The Facts Behind the Dispute
The case arose from a long-standing working relationship between cousins Joel Ward and Ren Bishop dating to the 1990s. Ward performed general construction work for Bishop Construction, LLC, including building, plumbing, electrical, framing, roofing, and siding work on projects in Idaho, Montana, and Wyoming. Bishop agreed to pay Ward $10 per hour, later increased to $12 per hour, plus one-way travel expenses. Between 2017 and 2019, Ward worked over 1,100 hours but was never paid, totaling $12,443.54 in claimed damages.
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Tara Martens Miller, Snell & WilmerMs. Miller may be contacted at
tmmiller@swlaw.com
Insureds’ Altering Dates for Hailstorm Damage Justifies Denial of Claim
June 02, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Firth Circuit affirmed the district court’s grant of summary judgment to the insurer due to the insureds’ failure to establish the date of loss after a hailstorm. Cutchall v. Chubb Lloyds Ins. Co. of Texas, 2026 WL 625633 (5th Cir. March 5, 2026).
In September 2021, the Cutchalls made a claim on their policy for interior water damage due to a hailstorm that breached their roof. Chubb retained two engineers to inspect the home, but neither found evidence that a hailstorm caused the damage. Instead, the engineers concluded a variety of other causes, such as poor ventilation and as-built defects, caused the damage. Because Chubb concluded that some of these other causes were covered by the policy, it paid only for the covered portions.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com