Federal Court Highlights the Strategic Value of Additional Insured Coverage
June 22, 2026 —
Michael S. Levine - Hunton Insurance Recovery BlogA recent decision from the District of Maryland underscores a recurring—but often underutilized—opportunity for policyholders: securing and enforcing additional insured coverage under another party’s liability policy. In Charter Oak Fire Insurance Co. v. Builders Premier Insurance Co., the court held that an equipment lessor qualified as an additional insured under the lessee’s policy and was entitled to a primary defense.
The decision is a useful reminder that additional insured coverage can fundamentally shift defense obligations and materially reduce a policyholder’s exposure. We build on the decision to highlight the practical steps policyholders should take to ensure that all potentially available insurance is identified and pursued.
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Michael S. Levine, Hunton Andrews Kurth LLPMr. Levine may be contacted at
mlevine@hunton.com
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.
That’s a Wrap! Pennsylvania Court Holds Arbitration Clause in Online Agreement Unenforceable
May 14, 2026 —
Gus Sara - The Subrogation StrategistIn Duffy v. Tatum, 2026 Pa. Super. LEXIS 112, 2026 PA Super 41, the Superior Court of Pennsylvania (Superior Court) considered whether an arbitration provision contained in the online Terms of Service on the defendant’s website were enforceable. The plaintiff, Daniel Duffy (Duffy), visited the website of defendant, Dolly, Inc. (Dolly), to purchase moving services. Duffy selected the number of movers, items to be moved and the type of vehicle needed. To complete the booking, the website required Duffy to checkmark a box labeled “By checking this box I accept the Dolly Terms of Service.” Duffy did not have to open the link or scroll to the bottom of the agreement before being able to click on the checkmark box. The Terms of Service included an arbitration provision requiring that any dispute related to the moving services to be resolved by arbitration in accordance with the American Arbitration Association. The Terms of Service did not include any statement that the user was waiving the right to a jury trial. The Superior Court found the internet Terms of Service unenforceable.
During the moving process, an accident occurred and injured Duffy. In May 2024, Duffy and his wife sued Dolly and other related entities alleging negligence and loss of consortium. Dolly filed preliminary objections alleging that the parties agreed to alternative dispute resolution. The lower court overruled the preliminary objections, finding that Dolly’s website did not provide reasonably obvious notice of its Terms of Service to Duffy and, as such, Duffy never agreed to waive his constructional right to a jury trial. Dolly filed an appeal to the Superior Court.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
Kahana Feld Obtains Favorable Result in High-Exposure NY Premises Liability Case
June 15, 2026 —
Leigh Katz - Kahana FeldKahana Feld partner Leigh Katz obtained a significant victory in a recent matter involving a videotaped alleged trip and fall on the sidewalk in front of the client’s commercial residence. The plaintiff claimed he suffered a knee injury that necessitated surgery, along with other assorted injuries that prevented him from continuing high-level athletic activities. Leigh was able to demonstrate that the fall was staged and received a voluntary discontinuance with prejudice.
At mediation, Leigh emphasized that KF’s expert witness challenged the plaintiff’s claim that the fall was caused by a sidewalk height differential after reviewing the videotape footage and determining the plaintiff’s fall began before his feet made contact with the alleged defect. Based on this analysis, the expert concluded the reported height differential did not initiate the fall, which supported KF’s position that the incident depicted in the video was unrealistic and appeared staged.
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Leigh Katz, Kahana FeldMs. Katz may be contacted at
lkatz@kahanafeld.com
'Drywall Isn't Light': Peter Lupo on Safety Management at Standard Drywall
May 26, 2026 —
Elaine Silver - Engineering News-RecordPeter Lupo has been safety director since 2019 at San Diego-based Standard Drywall Inc., a major wall and ceiling contractor. He draws on over two decades of safety experience across a wide range of commercial construction work, having previously served as safety director for general contractor T.B. Penick & Sons. He has also previously operated Peter Lupo Consulting, where he reviewed legal cases and provided expert testimony, and blogged on safety for ENR.com. Lupo recently spoke to ENR Correspondent Elaine Silver about the weight of drywall, heat hazard control, bilingual crews and how he supports safety creativity and learning on the Standard Drywall staff. The conversation has been edited.
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Elaine Silver, Engineering News-RecordENR may be contacted at
enr@enr.com
Underlying Complaint Alleges Possibility of Coverage, Triggering Duty to Defend
September 15, 2026 —
Tred R. Eyerly - Insurance Law HawaiiIn a dispute among insurers for various defendants in the underlying case regarding the providing of a defense, the Second Circuit vacated, in part, the district court’s judgment and remanded the case. New Your Marine and Gen. Ins. Co. v. Fed. Ins. Co., 2026 U.S. App. LEXIS 18087 (2nd Cir. June 23, 2026).
Mary Guzman, who worked for a cleaning company, PBM, LLC, alleged that she was injured when a glass panel in a revolving door fell onto her as she cleaned the door. She filed suit in state court against the owners of the building as well as the lessee of the fifteenth floor where the accident occurred, Bank of New York Mellon (Bank). She alleged the owners and the Bank were negligent in creating the dangerous condition that caused her injury.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Endra Rethinks MEP Design with AI
July 06, 2026 —
Aarni Heiskanen - AEC BusinessNiklas Lindgren, co-founder and CEO of Endra, joins the
AEC Business Podcast to discuss why his Stockholm-based startup is rebuilding MEP design from the ground up with AI. Endra recently raised $50 million in Series A funding and counts some of the world’s largest engineering consultancies as customers.
Niklas explains why Revit’s underlying data model is too coarse to support deep automation, and why Endra built its own granular 3D data model instead of working as a plugin. He describes Endra’s “spatial AI” approach to routing conduit and ductwork without clashes, and how the platform models entire electrical systems, from receptacle to transformer, inside a single source of truth.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
New Executive Order on AI Innovation and Security: Key Takeaways for the Construction Industry
June 15, 2026 —
Richard R. Volack & Denis Serkin - Peckar & Abramson, PCOn June 2, 2026, President Trump signed an Executive Order titled “Promoting Advanced Artificial Intelligence Innovation and Security.” At its core, the Order is a cybersecurity and national-security measure rather than a broad regulation of how private companies develop or use AI. It directs federal agencies to harden government systems against AI-enabled cyber threats, establishes voluntary frameworks for collaboration between the federal government and the AI and critical-infrastructure sectors, and strengthens criminal enforcement against the malicious use of AI.
Notably, the Order expressly disclaims any intent to create a “mandatory governmental licensing, preclearance, or permitting” regime for the “development, publication, release, or distribution of new AI models.” Instead, the Executive Order seeks to “promote AI innovation and security” by working with the private sector to modernize government and private-sector information systems and harden them against external threats, protect intellectual property from exploitation or theft, and cultivate American AI capabilities.
Reprinted courtesy of
Richard R. Volack, Peckar & Abramson, PC and
Denis Serkin, Peckar & Abramson, PC
Mr. Volack may be contacted at rvolack@pecklaw.com
Mr. Serkin may be contacted at dserkin@pecklaw.com
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