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
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.
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
Read the full story...
Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination
June 08, 2026 —
Paul Williamson - ConsensusDocsVolumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[
1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[
2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[
3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[
4]
As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor.
Read the full story...Reprinted courtesy of
Paul Williamson, Peckar & Abramson, P.C.Mr. Williamson may be contacted at
pwilliamson@pecklaw.com
Every High-Tech Building Has Many Lifespans
August 16, 2026 —
Aarni Heiskanen - AEC BusinessWhen I worked as an architect, our team designed a laboratory for fuel research. The facility included a large research hall where various boilers and other devices were tested and analyzed. The setup required extensive floor channeling under the thick concrete floor. We suggested building a modular system that would allow flexibility in the future, when requirements would certainly change. They did not want that because of budget constraints.
The high-tech construction trend is spreading. Data centers, semiconductor fabs, battery plants, and life science facilities share one property that sets them apart from ordinary buildings. The technology inside turns over faster than the structure around it. Server generations change every three to five years. Rack densities have risen from 10 or 20 kW to 130 kW and beyond in just a few years.
A high-tech facility is really several buildings with different lifespans inside one envelope, and we keep designing them as if they were one. The failure is not that things become obsolete. It is that we never say when each layer is expected to.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
That’s a Wrap! Pennsylvania Court Holds Arbitration Clause in Online Agreement Unenforceable
May 14, 2026 —
Gus Sara - The Subrogation StrategistIn Duffy v. Tatum, 2026 Pa. Super. LEXIS 112, 2026 PA Super 41, the Superior Court of Pennsylvania (Superior Court) considered whether an arbitration provision contained in the online Terms of Service on the defendant’s website were enforceable. The plaintiff, Daniel Duffy (Duffy), visited the website of defendant, Dolly, Inc. (Dolly), to purchase moving services. Duffy selected the number of movers, items to be moved and the type of vehicle needed. To complete the booking, the website required Duffy to checkmark a box labeled “By checking this box I accept the Dolly Terms of Service.” Duffy did not have to open the link or scroll to the bottom of the agreement before being able to click on the checkmark box. The Terms of Service included an arbitration provision requiring that any dispute related to the moving services to be resolved by arbitration in accordance with the American Arbitration Association. The Terms of Service did not include any statement that the user was waiving the right to a jury trial. The Superior Court found the internet Terms of Service unenforceable.
During the moving process, an accident occurred and injured Duffy. In May 2024, Duffy and his wife sued Dolly and other related entities alleging negligence and loss of consortium. Dolly filed preliminary objections alleging that the parties agreed to alternative dispute resolution. The lower court overruled the preliminary objections, finding that Dolly’s website did not provide reasonably obvious notice of its Terms of Service to Duffy and, as such, Duffy never agreed to waive his constructional right to a jury trial. Dolly filed an appeal to the Superior Court.
Read the full story...Reprinted courtesy of
Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.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 Philadelp
Florida Courts Say that Developers Are Responsible for FloodingFlorida’s Proposed HB 255: A Quiet Shift That Could Reshape Condo Defect LiabilityThank You for Seven Years of Election to Super LawyersFormer Zurich Executive to Head Willis North America Construction Insurance GroupCustomer’s Agreement to Self-Insure and Release for Water Damage Effectively Precludes Liability of Storage Container CompanyFederal District Court Addresses Anti-concurrent Cause Language in Property PolicyU.K. Developer Pledges Building Safety in Wake of GrenfellWho is a “Contractor” as Used in “Unlicensed Contractor”?Car Crashes Through Restaurant Window. Result: Lesson in the History of Additional Insured CoverageSecurity on Large Construction Projects. The Payment Remedy You Probably Never Heard ofInsurer’s “Failure to Cooperate” DefenseCC&Rs Not the Place for Arbitration Agreement, Court RulesPresenting a “Total Time” Delay Claim Is Not SufficientContractor Given a Wake-Up Call for Using a "Sham" RMO/RMEA Funny Thing Happened to My Ground Lease in Bankruptcy CourtWill the Hidden Cracks in the Bay Bridge Cause Problems During an Earthquake?The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations Veolia Agrees to $25M Settlement in Flint Water Crisis CaseTrump Abandons Plan for Council on InfrastructureCoverage for Named Windstorm Removed by Insured, Terminating Such CoverageNewmeyer & Dillion Announces Three New PartnersColombia's $15 Billion Road Plan Bounces Back From Bribe ScandalNew Green Standards; Same Green Warnings for Architects & Engineers (law note)Eminent Domain Bomb Threats Made on $775M Alabama Highway ProjectWilke Fleury Celebrates the Addition of Two New PartnersQuanta Asks Judge to Block Award of $400M Long Island, NY Grid Contract to PSEGDon’t Waive Too Much In Your Mechanic’s Lien WaiverArizona Supreme Court Confirms Eight-Year Limit on Construction Defect LawsuitsTen Newmeyer & Dillion Attorneys Selected to the Best Lawyers in America© 2019Why the Total Recordable Incident Rate Doesn’t Tell the Whole Safety StoryImpasse Over Corruption Charges Costs SNC $3.7 Billion, CEO SaysReal Estate & Construction News Roundup (6/26/24) – Construction Growth in Office and Data Center Sectors, Slight Ease in Consumer Price Index and Increased Premiums for Commercial BuildingsLewis Brisbois Listed on Leopard Solutions Top 10 Law Firm IndexInsurer's Refusal to Consider Supplemental Claim Found ImproperBuilding Permits Up in USA Is a Good SignHurricane Milton Barrels Toward Florida With 180 MPH WindsBankruptcy on a Construction Project: Coronavirus EditionUtah Digs Deep and Finds “Design Defect” Includes Pre-Construction Geotechnical ReportsDoes Article 2 of the Uniform Commercial Code Impact Your Construction Project?Pool Contractor’s Assets Frozen over Construction ClaimsWhite Collar Overtime Regulations Temporarily BlockedGodfather Charged with Insurance FraudPennsylvania: When Should Pennsylvania’s New Strict Products Liability Law Apply?Daily Construction Reports: Don’t Leave the Job Without ThemCo-Founding Partner Jason Feld Named Finalist for CLM’s Outside Defense Counsel Professional of the YearWitt Named to 2017 Super LawyersHomebuilding Still on the RiseReal Estate & Construction News Round-Up (01/11/23) – Construction Tech, Housing Market Confidence, and DecarbonizationBreach of an Oral Contract and Unjust Enrichment and Implied Covenant of Good Faith and Fair DealingWhen “Normal Cracking” Isn’t So Normal: Parra v. Gillaspie Construction and the Two-Year Clock on Construction Defect ClaimsHow to Build Climate Change-Resilient InfrastructureA Downside of Associational Standing - HOA's Claims Against Subcontractors Barred by Statute of LimitationsUnderstanding the Miller ActAmbitious Building Plans in BostonBanks Rejected by U.S. High Court on Mortgage Securities SuitsMassachusetts Nuclear Verdict Leads To $90M Bad Faith AwardUK Construction Output Rises Unexpectedly to Strongest Since MayAppraisers’ Failure to Perform Assessment of Property’s Existence or Damage is Reversible ErrorThe Trend in the Economic Loss Rule in Construction Defect LitigationNo Duty to Defend Under Pollution PolicyNo Coverage Under Property Policy With Other Insurance and Loss Payment ProvisionsQuestions of Fact Regarding Collapse of Basement Walls Prevent Insurer's Motion for Summary JudgmentTraub Lieberman Attorneys Recognized as 2021 Top Lawyers by Hudson Valley MagazineNew LG Headquarters Project Challenged because of HeightPennsylvania’s Supreme Court Clarifies Pennsylvania’s Strict Liability StandardIt’s More Than a Feeling: Proving Construction Damages and When You Should Hire an Expert to Help Do ItMassive Redesign Turns Newark Airport Terminal Into a Foodie Theme ParkMicroscopic Soot, Major Win: Policyholder Coverage ExpandsEPA and the Corps of Engineers Repeal the 2015 “Waters of the United States” Rule
