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)
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Pillsbury's Construction & Real Estate Law Team
Court Denies Cross Summary Judgment Motions on Coverage for Odors in Newly Purchased Home
October 06, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court denied cross motions seeking to establish whether the policy covered damage due to smells in the insureds’ newly purchased home. Akina v. State Farm Fire & Cas. Ins. Co., 2026 U.S Dist. LEXIS 162817 (W. D. Wash. July 22, 2026).
Plaintiffs bought a home in May 2024 but never conducted an inspection before purchasing the property. Before moving in, plaintiffs secured a homeowners’ polilcy from State Farm.
After moving in, plaintiffs began noticing smells in the house and started suffering from health symptoms. Plaintiffs learned from neighbors that the prior occupants had been witnessed in “drug activity.” Plaintiffs moved out of the house and had testing done. The home tested positive for methamphetamine pollution.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
California Poised for the Most Significant Residential Construction Defect Reforms in Decades
September 01, 2026 —
Thomas D. Fama & Andrew J. Mallon - Wood Smith Henning BermanThe California Legislature is considering legislation that would dramatically alter the landscape of residential construction defect litigation. Assembly Bill 1903, currently pending before the Senate Judiciary Committee, proposes extensive amendments to California's Right to Repair Act (Civil Code sections 895-945.5) that would substantially strengthen procedural protections for builders while narrowing the scope of recoverable construction defect claims.
If enacted, the legislation would affect virtually every stage of a construction defect dispute- from the initial notice of claim through litigation and settlement- and would introduce an entirely new certification process for newly constructed condominium projects. This article details some of the most significant proposed changes.
Higher Burden for Construction Defect Plaintiffs
Perhaps the most consequential change is the bill's modification of the proof required to establish liability. current law generally requires a claimant to demonstrate the residence fails to satisfy one of the statutory performance standards established under the Right to Repair Act. AB1903 would instead require claimants to establish three separate elements:
- A violation of an applicable statutory performance standard;
- The violation caused appreciable, present, non-speculative physical damage to another building component; and
- The violation resulted from the original construction.
Reprinted courtesy of
Thomas D. Fama, Wood Smith Henning Berman and
Andrew J. Mallon, Wood Smith Henning Berman
Mr. Fama may be contacted at tfama@wshblaw.com
Mr. Mallon may be contacted at amallon@wshblaw.com
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Did You Know: Unique Legal Considerations for Animal Care Facilities
August 24, 2026 —
Hannah Skidmore - Construction ExecutiveAnimal care facilities are highly specialized environments that require expertise far beyond traditional commercial or even standard medical construction. Whether designing and building animal shelters, doggy daycares, veterinary clinics or full-service animal hospitals, these facilities operate under conditions that introduce unique challenges related to sanitation, durability, animal behavior and operational workflows.
Because of these complexities, projects that fail to account for animal care requirements adequately often encounter costly issues—many of which result in litigation. Below are real-world examples drawn from expert witness work, followed by proactive best practices construction professionals should apply to future animal care projects.
Reprinted courtesy of
Hannah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Hunton’s Jae Lynn Huckaba Selected to Miami-Dade Bar’s 2026 Circle of Excellence for Insurance Law
October 26, 2026 —
Hunton Insurance Recovery BlogCongratulations to Hunton insurance coverage associate
Jae Lynn (JL) Huckaba for being selected to the Miami-Dade Bar’s 2026 Circle of Excellence for Insurance Law.
Now in its fifth year, the Miami-Dade Bar’s Circle of Excellence Awards recognize attorneys who exemplify the highest standards of skill, integrity, and professionalism across the county. Honorees are chosen by a panel of past Circle of Excellence recipients following a rigorous two-month review that incorporates input from the public, Bar members, and committee leadership.
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Hunton Andrews Kurth LLP
Endorsement is Void Where Compliance is Impossible
September 21, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Sixth Circuit found that the insured’s loss of property due to fire was covered despite noncompliance with an endorsement requiring encompassing the property. 3371 Reading, LLC v. Liberty Mut Group, Inc., et al., 2026 U.S. App. LEXIS 19156 (6th Cir. June 29, 2026).
The insured, 3371 Reading, owned a building undergoing renovation. After the structure burned down, 3371 Reading made a claim under its policy with Ohio Casualty Insurance Company. Ohio Casualty relied on an endorsement requiring fencing round the jobsite.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
AI Data Centers Become City-Scale Infrastructure, Prompting New Industry Playbook
August 11, 2026 —
Bryan Gottlieb - Engineering News-RecordAI data centers are no longer just buildings. They are increasingly reaching power-demand levels more commonly associated with municipalities, prompting industry groups to launch a new framework they say is needed to keep pace with rapidly changing power, cooling and reliability requirements.
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Bryan Gottlieb, Engineering News-RecordMr. Gottlieb may be contacted at
gottliebb@enr.com
The Most Expensive Signature to Not Get: Why Change Orders Matter
August 16, 2026 —
Kathryne E. Baldwin - Wilke FleuryGeorge Bernard Shaw has a quote we use a lot in my family: “The single biggest problem in communication is the illusion that it has taken place.” This is pertinent to contractors and homeowners alike because the cost of failing to get proper signatures on documents like construction contracts, and particularly, change orders, is heavy. Both contractors and homeowners are in the same boat as far as wanting to complete a job as swiftly as possible: contractors go on to their next job and homeowners can return to peace in their home. This is prime territory for either party to suggest the work be completed today and the contract or change order executed tomorrow, or even later. However, without a contract, there is no memorialization of the communication between the parties, which can lead to confusion and missed expectations on both sides.
Construction plans are rarely as neat and tidy as they originally seem to be. A contractor may uncover unforeseen conditions, an owner may request additional work or changes that require additional work, or weather interferes with project schedules or the work itself. Unfortunately, the signature that never gets collected can become one of the most expensive omissions on a project – for both sides.
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