Real Estate & Construction News Roundup (6/24/26) – HUD to Fund AI Grants, Luxury Hotel Deal Investment Activity to Surge, ESPCs to Fund Energy and Infrastructure Improvements
July 06, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, data centers are exposed to climate change, commercial tenant sues CoStar, cities see opportunities in emerging sports markets, and more!
- With deferred maintenance growing and capital dollars stretched thin, local governments are using ESPCs to fund energy and infrastructure improvements through future operational savings. (Vicky Uhland, Construction Dive)
- The U.S. Department of Housing and Urban Development is offering up to $3 million in grants for local governments to deploy automated permitting and building code systems. (Ryan Kushner, Construction Dive)
- Luxury hotel deals are set to see a surge in investment activity due to strong fundamentals and strengthening capital markets. (Noor Adatia, Hotel Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
The Deadline to File Suit on a Public Works Payment Payment Bond is Triggered by a Claimant’s Work on a Project Not by a Claimant’s Work Under a Contract
June 02, 2026 —
Garret D. Murai - California Construction Law BlogCalifornia law requires that prime contractors furnish a payment bond – providing for payment to lower-tiered subcontractors and suppliers – on state and local public works projects with a value in excess of $25,000. There are three conditions that must be satisfied when a claimant makes a claim against a payment bond on a public works project in California:
- First, generally, the claimant must have served a preliminary notice, unless the claimant is a first-tier subcontractor or supplier;
- The claimant must have “ceased to provide work” on the project; and
- The claimant must file suit against the payment bond no later than six (6) months after the period in which a stop payment notice must be given or, in other words, the earlier of 270 days after completion of the public works project or 210 days after a notice of completion or cessation was recorded on a public works project.
In
Tarlton & Sons, Inc. v. Great American Insurance Company, 111 Cal.App.5th 376 (2025), the 2nd District Court of Appeal examined whether a subcontractor timely filed a claim against a payment bond when a prime contractor was terminated and replaced by another prime contractor who the subcontractor continued to perform work for.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Celebrating BWB&O’s 2026 Super Lawyers Rising Stars in San Diego!
March 31, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce that Partners
Jocelyn Russo,
Christina Matian, and Associate
Angelo Perillo have been named to the Super Lawyers 2026 San Diego Rising Stars list. This recognition highlights their outstanding dedication and distinguished service in Family Law, Civil Litigation, and Personal Injury Litigation.
SUPER LAWYERS
Jocelyn Russo: 2023-2026
Christina Matian: 2024-2026
Angelo Perillo: 2024-2026
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Bremer Whyte Brown & O’Meara, LLP
Beyond the Storm: How Non-Hurricane Catastrophes Expose Florida’s Construction Defect Blind Spot
August 11, 2026 —
Franchesco “Frank” Soto & Amanda L. Gonzalez - Ball JanikOn June 8, 2026, a magnitude 6.1 earthquake struck the Gulf near the coast of Cuba, the largest instrumentally recorded earthquake in the Gulf since seismic monitoring began in 1950. Buildings swayed, offices were evacuated, and many residents along the east coast of Florida, from Miami-Dade to Jacksonville, felt the ground shake. Although no tsunami followed and reported structural damage was limited, this event exposed a blind spot that Florida property owners, developers, and their counsel cannot afford to ignore: catastrophic stress on Florida buildings does not always come in the form of a named storm.
Florida property owners have grown accustomed to preparing for wind, storm surge, floods, and torrential rain. Far less attention is paid to earthquakes, sinkholes, tornadoes, hail, and non-tropical flooding, each of which can place unexpected stress on buildings not designed with those forces top of mind and can trigger deficiencies in buildings that were not otherwise known, expose design failures, and create an urgency for both insurance claims and subsequent litigation.
Non-Hurricane Triggers of Latent Defects
Seismic activity is the clearest example. Florida’s building code accounts for wind loads, not seismic forces, meaning even a moderate earthquake can reveal weaknesses in curtain wall systems, structural connections, or foundations that were already marginal. Sinkholes, driven by Florida’s karst limestone geology, remain a persistent threat, particularly in Central Florida, where subsurface voids can undermine foundations without warning. Non-tropical flooding, like the record rainfall that flooded South Florida in June 2024, can intrude through building envelopes and waterproofing systems that were never stress-tested for such volumes of water. Tornadoes and hail, while more localized, can cause roofing and envelope failures that mimic, mask, or trigger latent construction defects.
The Litigation and Coverage Disputes That Follow
When one of these events strikes a building already carrying undisclosed or unresolved construction defects, the resulting disputes become considerably more complex. Property owners and associations must move quickly to document existing conditions and distinguish damage caused by the event from pre-existing defective construction, the same causation issue that arises in the hurricane context under Chapter 558, but often without the benefit of established precedent or adjuster experience with these less common events.
Insurance coverage disputes frequently follow close behind. Carriers may dispute whether an earthquake, flood, or other peril is covered at all, particularly where policies contain earthquake or flood exclusions requiring separate endorsements, or anti-concurrent causation language that can bar coverage entirely when a covered peril combines with an uncovered one, such as pre-existing defective construction, to cause a loss. Sinkhole claims carry their own statutory framework under Florida law, requiring specific testing protocols and reporting before a claim is compensable. Developers and contractors, in turn, may find themselves defending Chapter 558 claims while simultaneously litigating with their own carriers over defense and indemnity obligations.
Practical Risk Mitigation Strategies
Property owners, associations, and developers can take several concrete steps to reduce their exposure. First, maintain thorough documentation, including engineering reports, maintenance logs, and photographs, well before any event occurs. This documentation is often the deciding factor in causation disputes. Second, engage structural engineers and consultants immediately following any seismic event, unusual flooding, or storm damage, regardless of whether a hurricane is involved. Prompt inspection preserves evidence and can help prevent inadvertent waiver of construction defect claims. Third, review insurance policies regularly with counsel or a broker to confirm earthquake, flood, and sinkhole coverage matches the property’s actual risk profile, rather than assuming a standard property policy responds to every peril. Fourth, avoid rushing to remediate before conditions are documented and/or before consulting counsel. Well-intentioned repairs can inadvertently compromise evidence needed to prove a defect claim.
The June earthquake was a reminder that Florida’s catastrophic risk profile extends beyond hurricane season. Property owners, associations, and developers who build readiness plans around all forms of catastrophic stress, not just named storms, will be far better positioned when the next unexpected event occurs.
Franchesco “Frank” Soto is a partner in
Ball Janik’s Construction Defect Practice Group in Miami. He may be reached at fsoto@balljanik.com.
Amanda L. Gonzalez is a litigation attorney in
Ball Janik’s Construction Defect Practice Group in Miami. She may be reached at agonzalez@balljanik.com.
Consider The Limited Warranty from Your Homebuilder
July 06, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen purchasing a home from a homebuilder, there is an important consideration when it comes to the limited warranty you receive around the time you close on the home. That limited warranty likely includes an arbitration provision requiring you to arbitrate your disputes, such as construction defect claims, against the homebuilder. That arbitration provision will most likely include all claims, including statutory claims (such as a statutory violation of a building code claim), requiring you to arbitrate, as opposed to litigate, your disputes against the homebuilder. This is an important consideration. If the arbitration provision does not allow you to arbitrate all of your claims, and eliminates your rights to legitimate statutory claims, the arbitration provision could be unenforceable.
By way of example, in a residential construction defect dispute, Anderson v. Taylor Morrison of Florida, Inc., 223 So.3d 1088 (Fla. 2d DCA 2017), the appeal turned on whether the arbitration provision in the homebuilder’s limited warranty was valid. The homeowners took possession of their home in 2009. In 2015, the homeowners served a Florida Statutes Chapter 558 notice of construction defects that included a statutory violation of a building code claim under Florida Statute §553.84. The limited warranty included an arbitration provision that specified it was the “exclusive remedy” for all disputes arising out of or related to the warranty or issues with the home and property. When read together with the warranty’s disclaimer that precluded claims not covered by the warranty “whether in contract, tort, or otherwise,” the statutory building code violation claim could not be remedied through arbitration because it fell outside the warranty’s coverage.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
U.S. Supreme Court Decision Alters Course of $745M Louisiana Coastal Damage Judgment
June 15, 2026 —
Jennifer Kretschmann & Jennifer E. Michel - Lewis BrisboisThe U.S. Supreme Court has issued a unanimous decision allowing oil and gas companies to move Louisiana coastal erosion lawsuits from state court to federal court under the federal officer removal statute. While the ruling is procedural, it carries significant implications for environmental- and energy-related risks. The case,
Chevron U.S.A. Inc. v. Plaquemines Parish, Louisiana, Slip Op. 24-813 (April 17, 2026), addressed a threshold jurisdictional question but has broader significance for environmental and climate related litigation. State courts are often viewed as more favorable forums for plaintiffs asserting environmental damage claims, particularly those brought by governmental entities.
The opinion issued on April 17, 2026 is the latest development in long-running Louisiana coastal litigation that began more than a decade ago. Starting in 2013, Louisiana parishes filed 42 lawsuits against oil and gas companies alleging environmental damage related to historic oil field operations. The parishes alleged that oil and gas companies violated state coastal management laws by failing to properly restore impacted areas. Chevron sought to remove the cases from state court under 28 U.S.C. § 1442(a)(1), known as federal officer removal, which provides federal jurisdiction over “any person acting under [an] officer” of the United States "for or relating to any act under color of such office." The Fifth Circuit rejected the argument and remanded the case, and others like it, to state court. Trial began in March 2025 in Point à la Hache, Louisiana. On April 4, 2025, the jury awarded a total of $745 million to compensate for land loss, contamination and abandoned equipment. On June 16, 2025, the U.S. Supreme Court agreed to review the question of whether a federal contractor can remove to federal court when sued for oil-production activities undertaken to fulfill a federal oil-refinement contract.
Reprinted courtesy of
Jennifer Kretschmann, Lewis Brisbois and
Jennifer E. Michel, Lewis Brisbois
Ms. Kretschmann may be contacted at Jennifer.Kretschmann@lewisbrisbois.com
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com
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2026 Top Business Risks for Construction and Engineering Companies
May 26, 2026 —
Darren Tasker - Construction ExecutiveThe 2026 Allianz Risk Barometer revealed some surprising findings for construction and engineering businesses. Now in its fifteenth year, this
annual business risk ranking by corporate insurer
Allianz Commercial incorporates the views of 3,338 global risk management professionals on the main perils on their radar for the year.
Survey respondents included construction and engineering risk experts who identified the threats keeping them up at night. Here is how they ranked the top industry risks for 2026:
Natural Catastrophes
Natural catastrophe risk retains the top spot, with 38% of construction and engineering respondents citing this risk as their leading concern for 2026. From the insurance perspective, economic and insured losses remained high, albeit lower than the 10-year average. The evolving nature of natural catastrophes continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural catastrophes are set to reach $107 billion for 2025, according to Swiss Re—the sixth year in a row they have exceeded $100 billion, while economic losses are well in excess of $200 billion.
Reprinted courtesy of
Darren Tasker, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Congratulations to BWB&O’s Orange County Team for Securing a Strong MSJ Result in a Residential Gas Explosion Matter!
May 14, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPHuge Congratulations to Partner
Kevin Wheeler and Associate
Lindsey Wells for securing a strong result on a Motion for Summary Judgment / Summary Adjudication filed on behalf of their client, the City of Murrieta. This was a complex, multi-party matter arising from a residential gas leak and explosion, where Plaintiffs alleged the City and MFPD failed to properly respond to the incident. After multiple complaints were consolidated and extensive defense work narrowed the case, eighteen plaintiffs remained asserting five causes of action against the City, prompting a comprehensive MSJ/MSA targeting liability, causation, and damages.
The Court’s ruling reflects a significant win, particularly on the immunity framework. The Court eliminated the core negligence and assumed-duty claims arising from fire protection and emergency response activities. It further disposed of the misrepresentation and public nuisance claims. At the end of the day, three plaintiffs were dismissed entirely for failure to comply with Government Claims Act requirements, further reducing the scope of the case. While the dangerous condition claim remains, it does so in a very limited posture.
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Bremer Whyte Brown & O'Meara LLP
