Anomaly in Adding a Third-Party Claimant to a Liability Insurance Coverage Dispute
May 05, 2026 —
David Adelstein - Florida Construction Legal UpdatesIn an insurance coverage lawsuit seeking declaratory relief, an insurer sued the third-party claimant. The insurer was seeking a declaration that there was no coverage, which naturally would impact the third-party claimant. The insured did not respond to the lawsuit and the insurer moved for a default judgment which was objected to by the third-party claimant. The trial court granted a final judgment in favor of the insurer, which prompted an appeal from the third-party claimant because the final judgment impacts its rights to coverage if it obtains a judgment against the insured.
The appellate court reversed but please take a look at this Court’s discussion on the issue of an insurer adding a third-party claimant to a coverage lawsuit when then the third-party cannot pursue a direct claim against the insurer until it obtains a settlement or judgment against the insured. It presents an interesting argument and counter-point for a third-party claimant that is added to the coverage lawsuit which has implications if it obtains a judgment against the insured:
This case involves an apparent anomaly in Florida law. It is well-established that third-party claimants injured by an insured’s negligence have a right as third-party beneficiaries to payment from the insured’s insurance proceeds. It is equally well-established that the third-party claimants’ rights in this regard do not accrue unless and until they obtain a verdict or settlement against the insured. A quick review of this law is helpful at this point.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Modern Building-Sundt $17M Claim Is Stranded by Hospital Bankruptcy
April 27, 2026 —
Richard Korman - Engineering News-RecordA $16.9-million claim for work on a hospital addition by a joint venture of contractors Modern Building Co. and Sundt Construction is stuck and delayed indefinitely following the California hospital's December bankruptcy filing.
Read the full story...Reprinted courtesy of
Richard Korman, Engineering News-RecordMr. Korman may be contacted at
kormanr@enr.com
Preventing Common and Costly Water Intrusion Events in Construction
July 13, 2026 —
Andrew Swift - Construction ExecutiveWater leaking into a building is a leading cause of
damage and loss in the construction industry. On one jobsite, heavy rains flooded a sub-basement, damaging a new electrical transformer—all because a roof drain was not property connected. On another jobsite, a drinking-fountain supply line broke in a multistory building that was undergoing renovation, causing water to run—undetected—for an entire weekend, resulting in water damage to all lower floors, where construction had been finished.
Those loss scenarios could have been prevented with a comprehensive and effective water damage prevention plan (WDPP). This includes routine site inspections to identify uncontrolled water damage exposures and basic maintenance to make sure drains are clean of debris and divert them to a catch basin or low point away from the building. An effective WDPP plan also incorporates technology such as backflow preventers on sewer connections and water sensing technology to monitor the most vulnerable exposures.
Reprinted courtesy of
Andrew Swift, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Pay-If-Paid: What You Need to Know Before Signing on the Dotted Line
August 03, 2026 —
Christian Fernandez & Matthew Racioppo - Snell & WilmerBuried deep in the fine print of a subcontract, a pay-if-paid clause may be looming. If you are a subcontractor or supplier, misreading these clauses can put your cash flow at risk. If you are an owner or general contractor, drafting them incorrectly can leave you with obligations you never intended — or unenforceable protections you were counting on.
It is more important than ever to understand when pay-if-paid clauses hold up and when they do not, as well as recent litigation and drafting trends. Whether you are negotiating a new agreement, reviewing your standard form contracts, or staring down a payment dispute, understanding how Arizona law treats pay-if-paid clauses is essential. In this article, we break down key considerations, walk through the legal standards Arizona courts apply, and offer practical tips to consider to help you protect your payment rights on the next project.
Reprinted courtesy of
Christian Fernandez, Snell & Wilmer and
Matthew Racioppo, Snell & Wilmer
Mr. Fernandez may be contacted at cfernandez@swlaw.com
Mr. Racioppo may be contacted at mracioppo@swlaw.com
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Real Estate & Construction News Roundup (7/8/26) – Data Centers Negotiate Flexibility for Speed, Hotel Deal Activities Focus on Luxury, and DC Sues Apartment Owners
July 20, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!
- Hyperscalers want their data centers online, and utilities want to provide interconnections, but both are still looking for common operating guidelines. (Herman K. Trabish, Construction Dive)
- Contractors are taking advantage of multibillion-dollar train and transit contracts, even as funding challenges create hurdles for project execution. (Matthew Thibault, Construction Dive)
- Although hospitality and leisure M&A deal volume was down 2.5% in the first half of 2026 compared to the prior six months, investors are concentrating on the upper end of the market, including luxury hotels, wellness resorts and gaming, or “data-rich,” platforms. (Noor Adatia, Hotel Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
Utah’s Emerging Framework for Responsible Data Center Development
September 08, 2026 —
Denise A. Dragoo & Josh Miller - Snell & WilmerUtah is establishing itself as one of the nation’s most attractive jurisdictions for large-scale data center development, with a structured, defensible regulatory pathway that gives developers and investors the clarity needed to deploy capital at scale. The cornerstone is Executive Order 2026-03, “Establishing a Higher Bar for Data Center Development in Utah,” signed by Governor Spencer J. Cox on May 29, 2026.
The Executive Order creates an actionable compliance framework letting developers demonstrate stewardship across water, air quality, energy, wildlife, and community engagement – reducing regulatory and reputational risk. Recent enactments on energy self-supply and water rights operationalize these principles, while a few counties have adopted short-term local moratoria to update zoning; understanding how these interact with the state framework matters for site selection.
Reprinted courtesy of
Denise A. Dragoo, Snell & Wilmer and
Josh Miller, Snell & Wilmer
Ms. Dragoo may be contacted at ddragoo@swlaw.com
Mr. Miller may be contacted at jmiller@swlaw.com
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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.
Read the full story...Reprinted courtesy of
Bremer Whyte Brown & O'Meara LLP
