Soot Constitutes Property Damage
March 17, 2026 —
Tred R. Eyerly - Insurance Law HawaiiApplying Missouri law, the Eighth Circuit affirmed the jury verdict awarding damages for the presence of soot after a fire. Maxus Metropolitan, LLC v. Travelers Property Cas. Co. of Am., 2025 U.S. App. LEXIS 29921 (8th Cir. Nov, 17, 2025).
A fire destroyed Phase 6 of a multi-building apartment complex known as the Metropolitan. At the time of the fire, all six phases of the Metropolitan were at various stages of completion, including some of which were occupied by tenants. Phase 6 was still under construction. The fire caused severe damage to Phase 5. The interiors of Phases 1-4 were unaffected by the fire.
Maxus Metropolitan, the owner of the complex, had a policy with Travelers which covered up to $35 million in “direct physical loss, . . or damage.” The policy also provided coverage for up to $5 million in lost business income.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.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.
Insured General Contractor Prevails on Motion for Summary Judgment to Establish Builder’s Risk Coverage
July 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe general contractor’s motion for partial summary judgment successfully established that damage to footings in place before the policy period was covered after the collapse of a building. Big D Builders, Inc. v. Am Zurich Ins. Co., 2026 U.S. Dist. LEXIS 72012 (D. Idaho March 31, 2026).
Big D was the general contractor for building a new airplane hangar by erecting a 38,000 square foot structure. Before Big D began construction, the site of the hangar did not contain any pre-existing structures or buildings. Before completion of the hangar, it collapsed and caused extensive property damage.
The builder’s risk policy issued by Zurich covered certain aspects of the construction project for the policy period December 28, 2023, to December 28, 2024. Zurich accepted coverage for most of the damage but not for damage to footings and columns installed prior to the start date of the policy.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
50 State Matrices | 2026 Edition
March 03, 2026 —
Gordon Rees Scully MansukhaniGRSM’s 50 State Legal Matrices provide a comprehensive, state-by-state snapshot of statutory law across all 50 U.S. states. Spanning critical areas such as indemnification, contractor licensing, labor standards, statute of limitations, and more, this resource enables businesses and counsel to quickly identify key legal requirements and variations across jurisdictions.
Designed as a practical starting point rather than definitive legal advice, the Matrices help multi-state operators and attorneys navigate the complex patchwork of laws that can vary dramatically from one state to another.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
Angela Zanin Featured in LACBA List of Women’s History Month Honorees
March 17, 2026 —
Lewis Brisbois NewsroomLos Angeles Partner Angela Zanin was recently honored for her leadership and diversity initiatives in the California legal community by the Los Angeles County Bar Association (LACBA) as part of the organization’s Women’s History Month initiative.
LACBA highlighted Ms. Zanin’s efforts in the community. After serving as President of the Italian American Lawyers Association (IALA) in 2023, she co-founded the Los Angeles County Unity Bar (LACUB), an alliance of bar associations dedicated to promoting diversity in the judiciary. Consisting of ten member organizations, the LACUB takes pride in its endorsement of over 40 candidates appointed to the California Court of Appeal, U.S. District Courts, Los Angeles Superior Court, and Orange County Superior Court.
Read the full story...Reprinted courtesy of
Lewis Brisbois
Did You Get the Message? (And does it count?) The Legal Consequences of Text Messages, Group Chats, and Informal Digital Communication on Construction Projects
March 17, 2026 —
Kellie Ros & Curtis Martin - ConsensusDocsIntroduction: The New Reality of Construction Communication
Construction projects have always depended on a constant stream of communication. Today’s project managers, superintendents, and foremen have broadened the method of communication to include convenient forms of digital communication. Superintendents text photos of field conditions, owners send quick approvals through WhatsApp, architects clarify design intent in a Teams chat, and subcontractors coordinate sequencing through group texts. These channels are fast, convenient, and deeply embedded in modern project culture. Yet the legal framework governing construction contracts has not evolved at the same pace. Many contracts still assume – or require – that notice, directives, and approvals occur through formal written channels—letters, emails to designated recipients, or structured project‑management platforms. This disconnect creates significant legal risk, particularly for contractors who rely on informal messages as authorization for extra work or schedule changes. Courts are increasingly asked to interpret text messages, chat threads, and screenshots as evidence of notice, direction, or waiver. The outcomes vary, but the trend is unmistakable: informal digital communication is now part of the project record, and it can bind parties in ways they did not expect.
Reprinted courtesy of
Kellie Ros, Peckar & Abramson, P.C. and
Curtis Martin, Peckar & Abramson, P.C.
Ms. Ros may be contacted at kros@pecklaw.com
Mr. Martin may be contacted at cmartin@pecklaw.com
Read the full story...
AI in AEC 2026: Doing AI Right and Rethinking Your Business Model
April 08, 2026 —
Aarni Heiskanen - AEC BusinessThe sixth AI at the AEC 2026 conference showcased the evolution of AI discussions. There were, naturally, many talks about software and technologies. But more than before, there were conversations about realizing AI’s business value.
Two themes appeared in nearly every session I attended. First, many companies struggle with AI adoption, not because they lack tools, but because their thinking isn’t right. Second, when AI works, it disrupts the business model that brought them there.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Oracle's $16B Michigan Data Center Secures Financing as Power Contracts Face Appeals
June 08, 2026 —
Bryan Gottlieb - Engineering News-RecordA $16 billion hyperscale data center under construction outside Ann Arbor, Mich., has secured financing backed by Blackstone and other institutional investors, even as the project's power supply agreements now face a legal challenge before the Michigan Court of Appeals.
Read the full story...Reprinted courtesy of
Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
