Rogue AI — Is Your Company Prepared?
September 28, 2026 —
Michael S. Levine - Hunton Insurance Recovery BlogThe recent wave of "rogue AI" incidents should be a wake-up call for every business leader and risk manager paying attention.
Recent accounts document a sobering reality: AI systems from multiple leading AI developers have each escaped controlled testing environments and caused real-world harm—compromising outside infrastructure, exploiting third-party vulnerabilities, and even canceling another person's reservation to help a user jump a waitlist. These aren't hypotheticals from a sci-fi movie. They happened this summer.
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Michael S. Levine, Hunton Andrews Kurth LLPMr. Levine may be contacted at
mlevine@hunton.com
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.
No Bad Faith Despite Insurer’s Appraisal Award Exceeding Initial Payment
August 03, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insurer’s motion for summary judgment, finding no bad faith despite the appraisal award exceeding the amount the insurer initially paid. Jazi Kat 4659 Rockridge LLC, et al. v. Travelers Cas. Ins. Co. of Am., et al., 2026 U.S. Dist. LEXIS 105634 (D. Ariz. May 13, 2026).
Plaintiffs sued Travelers for breach of contract and bad faith, alleging that Travelers failed to pay money plaintiffs were owed under the policy. Plaintiffs held a commercial property policy for two properties. A fire destroyed one of the properties. Travelers adjusted the claim and issued two payments. Plaintiffs disagreed with the amount of the payments and demanded an appraisal. Travelers agreed to the appraisal.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Bad Faith Claim Survives Summary Judgment
June 08, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe court denied the insurer’s motion for partial summary judgment on the insured’s bad faith claim, but granted the motion on the insured’s claim for punitive damages. Serbian Orthodox Church v. Brotherhood Mut. Ins. Co., 2026 U.S. Dist. LEXIS 58234 (S.D. Cal. March 19, 2026).
On February 1, 2023, the Church filed a claim for water damage with Brotherhood Mutual Insurance Company (BMIC). The claim was based on rain and wind that caused extensive water intrusion into the Sanctuary, damaging its plaster walls and ceilings and fresco paintings. The claim was assigned to Patrick Hurley. Hurley sent a letter discussing potential bars to coverage and requesting further information and documents from the Church.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.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
White and Williams LLP is Proud to Host the 20th Anniversary Virginia Barton Wallace Award and Reception
May 05, 2026 —
White and Williams LLPWhite and Williams LLP is proud to host the 20th Anniversary Virginia Barton Wallace (VBW) Award and Reception, which will celebrate this year’s honoree,
The Rendell Center for Civics & Civic Engagement. This award was created to celebrate the remarkable career of Virginia “Ginny” Barton Wallace, the first woman to be elected to partnership not only at White and Williams but also at any law firm in Philadelphia. The VBW Award is presented to a woman or organization that embodies the same qualities that Ginny possessed: leadership, drive, exemplary work ethic, overall excellence in her field, or an ability to inspire other women to succeed.
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White and Williams LLP
Not Every Job Is Worth Winning: Contract Risk Questions Contractors Should Ask Before They Bid
September 29, 2026 —
Jack Mayo - ConsensusDocsIntroduction
Winning the work is not the same as winning the project, at least financially. Consider a contractor that commits to procure custom or long-lead materials before receiving complete construction documents. Depending on the language of the contract, if the final design is altered after those materials have been ordered, the contractor may be left responsible for replacement costs, procurement delays, or both. Alternatively, a subcontractor that accepts a pay-if-paid provision without investigating the owner’s financing, or prematurely waives lien rights, potentially risks nonpayment for properly performed work.
Such concessions can quickly transform an apparently profitable project into a significant financial burden. A successful bid can therefore become an unsuccessful project if the contractor accepts contractual “red flags” without evaluating their consequences and the long-term financial impacts that they may have. The significance of each risk will depend on the project, the parties, the proposed contract, applicable law, and the contractor’s business objectives. Although not comprehensive, this article identifies several key considerations for that process to help mitigate certain risks.
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Jack Mayo, Jones Walker LLPMr. Mayo may be contacted at
jmayo@joneswalker.com
"Resilient Rebuild Hub" Helps Wildfire-Impacted Homeowners Build Back Stronger
September 21, 2026 —
California Nevada Cement AssociationNEWPORT BEACH, Calif., Sept. 21, 2026 /PRNewswire/ -- When homeowners in a fire-ravaged Pacific Palisades neighborhood banded together last year to rebuild with fire-hardened materials rather than standard wood framing, they weren't just rebuilding houses: they were rewriting the playbook for how California communities can rebuild after wildfire. Today, the Building with Resilience effort is making that playbook available to every homeowner facing the same decision with the launch of its new Resilient Rebuild Hub for exploring fire resistant, non-combustible construction options.
The Resilient Rebuild Hub helps homeowners understand options for fire-resistant, concrete-based construction and connect with architects, engineers, and contractors who can build them. This includes six noncombustible building systems:
- Insulated Concrete Forms (ICF): stackable, high-density foam blocks filled with concrete which save 20-50% on monthly heating and cooling costs, reduce outside noise by up to 80%, offer exceptional earthquake performance and 4-hour fire resistance rating.
- Insulated Composite Concrete Forms (ICCF): similar formwork to ICF construction with composite materials that enhance strength, simplify installation, and improve long-term performance.
- Concrete Masonry: strong, durable wall systems used for decades across California and the U.S.
- Precast Insulated Sandwich Panels: a complete building enclosure system consisting of two layers of concrete separated by a continuous layer of rigid insulation.
- 3D Shotcrete: air-sprayed concrete for strong, fast, and versatile wall systems that enable a high degree of artistic freedom together with unparalleled fire resistance.
- 3D Concrete Printing: the cutting edge of residential construction, a large-scale robotic 3D printer "squeezes" a specialized concrete mixture layer by layer to allow for organic, curved designs that are often too expensive or impossible to build with traditional methods.
The Resilient Rebuild Hub is available now at buildingwithresilience.com/how-to-build. Each part is free to access and includes case studies, technical resources, and a directory of architects, engineers, and contractors experienced in each building method.
CNCA is a not-for-profit organization committed to developing sustainable and economical construction solutions for California and Nevada with an emphasis on the use of cement and concrete. For more information, visit www.cncement.org.
CalCIMA is a trade association for the construction and essential mineral industries in California, including aggregate, essential and rare earth minerals, ready mixed concrete, and asphalt producers. In all, there are about 70 producer member companies that include 500 production sites in every county of California. Our members also include more than 100 suppliers and service providers to the industry.
Founded in 1930, the National Ready Mixed Concrete Association (NRMCA) is the leading industry advocate with a mission to provide exceptional value for our members by responsibly representing and serving the entire ready mixed concrete industry through leadership, promotion, education and partnering to ensure ready mixed concrete is the building material of choice.