THREE RIVERS TEXAS CONSTRUCTION EXPERT WITNESS
DIRECTORY AND CAPABILITIES

Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects

May 05, 2026 — Stephen Hauptman - Ball Janik LLP
Florida'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.

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At the Intersection of Indemnity and Prevailing Wages

March 17, 2026 — Garret Murai - California Construction Law Blog
In a case that I’m frankly surprised I don’t see more of, the 2nd District Court of Appeal of California examined an indemnity claim by a subcontractor against a general contractor and public entity who mistakenly believed that a construction project did not require the payment of prevailing wages. The Nabors Case In Nabors Corporate Services, Inc. v. City of Long Beach, 108 Cal.App 540 (2025), subcontractor Nabors Corporate Services, Inc. sued general contractor Tidelands Oil Production Company and the City of Long Beach after it was found liable in a class action lawsuit for failing to pay prevailing wages to its employees. Nabors’ contract with Tidelands did not require the payment of prevailing wages and neither Tidelands nor the City believed that the project, which involved “oil well plug and abandonment” work, required the payment of prevailing wages. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict

May 26, 2026 — Gray Development Group
PHOENIX, 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.

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How Mobile Tools Are Capturing Safety Data on Jobsites

April 08, 2026 — Michael Bruns - Construction Executive
Traditionally, construction safety management is “reactive compliance”—reporting on an incident, filling out a form on paper or electronically, taking a picture and filing it away for compliance purposes. Safety management is shifting from reactive to proactive. Forward-thinking companies are using data and leading indicators to identify risks before incidents happen, not just document injuries after the fact. Mobile tools have completely changed the way safety operations work on construction sites, enabling that transition to proactive safety management. Reprinted courtesy of Michael Bruns, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Construction Liens and the “Substantial Performance” Doctrine

April 08, 2026 — David Adelstein - Florida Construction Legal Updates
In a recent case dealing with a construction lien, the driving issue was whether the air conditioning contractor “substantially performed” before recording its construction lien against residential property. The importance here pertains to the substantial performance doctrine with respect to construction liens. The Third District Court of Appeal explained, with relevant citations, this doctrine as follows: Under Florida law, a contractor is entitled to a mechanic’s lien if he complies with all provisions of Chapter 713, governing construction liens, and “has substantially performed the contract.” Grant v. Wester, 679 So. 2d 1301, 1307 (Fla. 1st DCA 1996) (quotation omitted); Langley v. Knowles, 958 So. 2d 1149, 1151 (Fla. 5th DCA 2007) (“The substantial performance doctrine recognizes that a contactor who complies with all of the provisions of the contactor’s lien statute is entitled to enforce a lien if he has substantially, but not completely, performed his contractual obligations.”). Substantial performance is performance “so nearly equivalent to what was bargained for that it would be unreasonable to deny the promisee the full contract price subject to the promisor’s right to recover whatever damages may have been occasioned him by the promisee’s failure to render full performance.” Ocean Ridge Dev. Corp. v. Quality Plastering, Inc., 247 So. 2d 72, 75 (Fla. 4th DCA 1971). Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Congratulations to Las Vegas Partner Jeffrey Saab and Senior Associate Shanna Carter on Winning Another Motion for Summary Judgment!

March 17, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Partner Jeffrey Saab and Senior Associate Shanna Carter’s client owned a condo, which he rented out. The tenant allegedly assaulted Plaintiff across the street from the condo, resulting in personal injury, including nerve damage. Shanna did the research and writing, and Jeff argued the Motion for Summary Judgment. The Court ruled, in pertinent part, that the subject assault off property was not foreseeable, resulting in a complete dismissal of the lawsuit with prejudice. Read the full story...
Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Balancing the Right to Repair With Evidence Preservation in Construction Defect Litigation

April 20, 2026 — Benton Wheatley & Anna Spicer - Construction Executive
Every major construction project comes with risk, whether it’s a warehouse build, a multifamily development or a major renovation. Parties tend to be aligned when things are proceeding as planned. But when something goes wrong—cracked concrete, water intrusion, systems that don’t perform as expected—those interests can quickly diverge. Property owners are often caught in the middle when construction defects surface. They’re expected to act quickly to limit damage and costs. But they also have legal obligations to preserve evidence and allow potentially responsible parties, such as contractors or designers, to observe testing, demolition and repairs. Additionally, owners often have duties to lenders and investors to fix problems promptly and pursue claims against those responsible. Meanwhile, contractors and other parties have obligations of their own—not to interfere with repairs and not to delay mitigation efforts while investigations are underway. What follows will examine how those competing responsibilities play out in construction defect disputes. Reprinted courtesy of Benton Wheatley & Anna Spicer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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White House Explores Opening Antitrust Probe on Homebuilders

February 10, 2026 — Patrick Clark & Leah Nylen - Bloomberg
Trump administration officials are exploring opening an antitrust investigation into US homebuilders as the White House sharpens its focus on tackling the country’s housing affordability crisis. The Department of Justice could open the probe in the coming weeks, according to people familiar with the discussions. No decision has been made and the administration may abandon the effort without launching an investigation, the people said, asking not to be identified discussing non-public information. Reprinted courtesy of Patrick Clark, Bloomberg and Leah Nylen, Bloomberg Read the full story...

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