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.
White and Williams LLP Recognized on the List of Largest Law Firms in Greater Philadelphia
March 03, 2026 —
White and Williams LLPWhite and Williams LLP was recently recognized on the list of Largest Law Firms in Greater Philadelphia by the Philadelphia Business Journal. The Firm is ranked #10 among the largest law firms in the Greater Philadelphia area.
This listing ranks over 500 law firms in the counties of Bucks, Chester, Delaware, Montgomery, or Philadelphia in Pennsylvania; Atlantic, Burlington, Camden, or Gloucester in New Jersey, and Kent or New Castle in Delaware. White and Williams has been named on the list since 2023.
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White and Williams LLP
Texas Voids Out-of-State Forum and Choice of Law Clauses in Construction Contracts
March 17, 2026 —
Conor G. Bateman - Snell & WilmerThe Texas Legislature amended statutes impacting construction contracts for projects located in Texas to declare any forum selection clause or choice of law provision “void as against public policy,” and mandate venue for any litigation or arbitration shall be in the Texas county in which the work is performed. The parties may stipulate to a different venue only after the dispute arises.
Forum selection clauses and choice of law provisions are common in construction contracts. Frequently, general contractors based in other jurisdictions require subcontractors to sign contracts designating the contractor’s preferred venue for any dispute. These contracts may also select the law of another state to govern the contract.
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Conor G. Bateman, Snell & WilmerMr. Bateman may be contacted at
cbateman@swlaw.com
White and Williams LLP Secures $42.4 Million Award for Ventana DBS LLC in Philadelphia Marriott Construction Litigation
July 27, 2026 —
Craig O'Neill, Lindsay Liebman, Kristen Nichols Wright, Zachary Roth & William Taylor - White and WilliamsWhite and Williams LLP's Construction and Surety Practice attorneys secured a significant victory for client Ventana DBS LLC in a complex commercial construction dispute before the Philadelphia Court of Common Pleas, Commerce Division. The trial team, led by Bill Taylor, retired Partner, and Craig O'Neill, Co-Chair of the Construction and Surety Practice Group, with support from Lindsay Liebman, Counsel, Zachary Roth, Partner, Kristen Nichols Wright, Associate, and Sue Ferrante, Legal Secretary, obtained a $42.4 million award on Ventana's claims for unpaid work, delay costs, CASPA penalties and interest, attorneys’ fees and other project-related costs arising from the construction of the Marriott W/Element Hotel Project in Philadelphia.
To achieve this result, the White and Williams team managed an extensive discovery period over the course of four-years of litigation, conducted over sixty depositions, participated in court-ordered mediation and arbitration proceedings, and successfully represented Ventana during a bifurcated trial that spanned over the course of a year.
Reprinted courtesy of
Craig O'Neill, White and Williams,
Lindsay Liebman, White and Williams,
Kristen Nichols Wright, White and Williams,
Zachary Roth, White and Williams and
William Taylor, White and Williams
Mr. O'Neill may be contacted at oneillc@whiteandwilliams.com
Ms. Liebman may be contacted at liebmanl@whiteandwilliams.com
Ms. Wright may be contacted at wrightk@whiteandwilliams.com
Mr. Roth may be contacted at rothz@whiteandwilliams.com
Mr. Taylor may be contacted at taylorw@whiteandwilliams.com
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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.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Sausage-Making Often Relies on the Good Sense of the Chef Rather than the Recipe
June 23, 2026 —
Garret D. Murai - California Construction Law BlogEven for lawyers, the rules governing litigation can get complex and convoluted. Does something need to be filed? What needs to be filed? When is the deadline for filing?
Simple questions with not always with straightforward answers.
This was the case in
R & J Sheet Metal, Inc. v. W.E. O’Neil Construction Co. of California, 111 Cal.App.5th 878 (2025), which involved sheet metal panels lost when they fell into the Port of Long Beach harbor.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Shane Singh Named One of Los Angeles Business Journal's 'Top 100 Lawyers of Los Angeles' for 2026
April 27, 2026 —
Lewis BrisboisSacramento Partner Shane Singh has been named one of the Los Angeles Business Journal's "Top 100 Lawyers of Los Angeles" for 2026.
The LABJ’s annual list honors Los Angeles' top lawyers for their achievements within the city's business community.
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Lewis Brisbois
Thank You All for 10 Years Straight of VA Super Lawyers
May 05, 2026 —
Christopher G. Hill - Construction Law MusingsIt is with humility and a sense of accomplishment that I announce that I have been selected for the tenth straight year to the
Virginia Super Lawyers in the Construction Litigation category for 2026. Add this to my recent election to the
Virginia Legal Elite in Construction and I’ve had a pretty good year. As always, I am thrilled to be included on these peer-elected lists. Your confidence in my work is very gratifying.
So without further ado, thank you to my peers and those on the panel at Virginia Super Lawyers for the great honor. I feel quite proud to be part of the
5% of Virginia attorneys that made this list for 2026.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
