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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Newmeyer Dillion Partner Jeff Masters Recognized by Chambers USA for Representation of Insurance Policyholders
June 08, 2026 —
Newmeyer DillionNEWPORT BEACH, Calif. – June 4, 2026 – Newmeyer Dillion is proud to announce that litigation partner Jeffrey D. Masters has been ranked among a select group of California lawyers representing insurance policyholders in the 2026 edition of Chambers USA.
This marks two consecutive years of recognition for Masters by this prestigious international attorney rating resource.
"This recognition by Chambers and Partners is a testament to Jeff’s dedication to our clients," said Managing Partner, Paul Tetzloff. "We are thrilled to see his hard work acknowledged and the level of passion and care that he delivers to clients fully recognized."
Read the full story...Reprinted courtesy of
Newmeyer Dillion
Motion for Summary Judgment Granted in Significant California Public Utilities Suit
May 12, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPCongratulations to Partner Mike D’Andrea and Associates Ruth Rasiah and Kaylah Abdullah in the Los Angeles office for obtaining a complete dismissal of their clients in a significant claim involving California’s Public Utilities regulations.
After lengthy litigation, BWB&O’s Motion for Summary Judgment was granted against Claimant, Spectrum (Charter Communications), which resulted in a complete dismissal of the action against BWB&O’s clients. At issue was whether California’s Public Utilities Code shifted the common law duty to maintain certain utility equipment in residential areas within Southern California. After significant briefing, the Superior Court found that BWB&O correctly argued that the Public Utilities Code required utility companies, like Spectrum, to fully maintain utility equipment, and that private residents are not responsible for utility maintenance (even if the physical equipment is located on private property).
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
Powering Data Centers in a Moving Regulatory Landscape: Positioning Deals Before FERC’s Next Move
April 27, 2026 —
Stephen J. Humes, Alicia M. McKnight & Andrew H. Jacobs - Gravel2Gavel Construction & Real Estate Law BlogThe explosive growth of data‑center load—driven by artificial intelligence, cloud computing and the expansion of digital infrastructure across industries—has forced U.S. energy regulators into unfamiliar territory. Nowhere is this more evident than at the Federal Energy Regulatory Commission (FERC), which is actively considering how large, concentrated loads can be powered without compromising grid reliability or shifting costs to other customers.
FERC has not yet issued a standalone rulemaking on data centers. But make no mistake, the regulatory framework is quietly and deliberately being built. For developers, hyperscalers, utilities and investors, the period before FERC finalizes its next round of decisions represents the critical window to crystallize advocacy and structure transactions in ways that anticipate regulatory change.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury and
Andrew H. Jacobs, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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CEO: Power Isn’t the Only Electrical Challenge for AI Data Centers
April 14, 2026 —
Francesco "Frio" Iorio - Engineering News-RecordEveryone knows that data centers are voracious consumers of electricity. In fact, the U.S. is currently scrambling to meet unprecedented levels of power demand not seen since
the early days of electrification and the widespread adoption of air conditioning.
Read the full story...Reprinted courtesy of
Francesco "Frio" Iorio, Engineering News-RecordENR may be contacted at
enr@enr.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 Moves to Tighten Third-Party Practice: Key Changes to CPLR 1007
March 31, 2026 —
Sophia L. Cahill - SheppardEffective April 18, 2026, the New York Legislature enacted the Avoiding Vexatious Overuse of Impleading to Delay (“AVOID”) Act, amending CPLR 1007—the statute that governs third-party practice. The amendment sharply limits when and how defendants can commence third-party actions, curbing the expansive discretion they previously enjoyed and targeting the late-stage impleaders that often upend case schedules.
What Changes
Before the AVOID Act was signed into law on December 19, 2025 (and subsequently modified by Chapter Amendments A9502 and S8809, signed by Governor Hochul on February 13, 2026[1]), CPLR 1007 gave defendants broad latitude to implead “any person who is or may be liable” for all or part of the plaintiff’s claim. CPLR 1007 specified no outside time limit for the initiation of a third-party claim; courts assessed only whether a defendant’s delay was undue—such as impleading months after the note of issue—and whether the plaintiff would suffer prejudice if the third-party action were not severed.
Read the full story...Reprinted courtesy of
Sophia L. Cahill, SheppardMs. Cahill may be contacted at
scahill@sheppard.com
Brenda Radmacher Authors Chapter in ABA Publication on Construction Delays
May 26, 2026 —
Brenda Radmacher - The Construction SeytBrenda Radmacher, a partner in Seyfarth’s Construction Law practice and a mediator and arbitrator serving on the American Arbitration Association’s panels, is among the contributing authors to the American Bar Association’s forthcoming guide on construction disputes: Time – The Legal Implications of Project Delay in Construction.
Drawing on three decades of experience, Radmacher authors Chapter 8, Contractor Delay Damages, offering practical insight into one of the most contested issues in construction litigation and arbitration.
Read the full story...Reprinted courtesy of
Brenda Radmacher, Seyfarth Shaw LLP
