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.
Segal McCambridge Recognized in 2026 Chambers USA Rankings
June 15, 2026 —
Segal McCambridgeLos Angeles, CA, June 8, 2026 -
Segal McCambridge is pleased to announce that the firm has been recognized as a leader by Chambers USA in California. The firm is listed in the Chambers-ranked department, receiving a
Band 5 ranking for construction in California. The ranking further reinforces the firm's commitment to supporting California's construction market, from owners to developers and contractors, in high-stakes disputes statewide.
"Chambers' research-driven process and independence make this acknowledgment especially meaningful. We're proud of this ranking and grateful to our clients and colleagues whose consistent trust and collaboration make our work possible," said Jason P. Eckerly, Managing Shareholder of Segal McCambridge.
Chambers and Partners is widely regarded as one of the legal industry's most respected and independent ranking organizations. Operating across 200 jurisdictions and relied on in more than 70 countries, Chambers has, since 1990, conducted rigorous research to identify leading lawyers and law firms through a methodology that combines analysis of firm capability, achievement, and market presence through interviews and assessment of recent matters across more than 1,400 U.S. ranking tables, covering all 50 states, Washington, DC, and nationwide.
About Segal McCambridge
Segal McCambridge has built a reputation as a national law firm of accomplished trial attorneys for almost four decades. Founded in 1986, the firm has grown from a four-lawyer shop in Chicago to a firm with more than 20 offices nationwide. The firm routinely counsels and defends clients, including Fortune 500 companies, corporations, and individuals, across the United States in complex litigation matters, including, but not limited to: asbestos, class action, construction, employment, environmental, food and beverage, insurance coverage and bad faith, life sciences, product liability, professional liability, technology and cyber risk, transportation, and warranty. For more information, visit: www.segalmccambridge.com.
New Florida Law Adds Licensing Risk to Contractor/Subcontractor Payment Disputes
September 29, 2026 —
Brett J. Moritz & Ali Heyat - Peckar & Abramson, P.C.Effective July 1, 2026, Florida’s newly enacted Section 489.1295 of the Florida Statutes, titled “Prohibition Against Nonpayment,” requires licensed contractors to timely compensate subcontractors and suppliers for labor, services, or materials. Enacted as part of Senate Bill 290 (Ch. 2026-3, Laws of Fla.), the statute adds a new basis for instituting disciplinary proceedings against a contractor’s license if a payment is knowingly or willfully withheld.
While this is not a sweeping overhaul of Florida construction payment laws by any means, contractors should be aware that nonpayment disputes with subcontractors and suppliers may carry potential licensing consequences.
Reprinted courtesy of
Brett J. Moritz, Peckar & Abramson, P.C. and
Ali Heyat, Peckar & Abramson, P.C.
Mr. Moritz may be contacted at bmoritz@pecklaw.com
Mr. Heyat may be contacted at aheyat@pecklaw.com
Read the full story...
The Best Lawyers in America® - Ball Janik Attorneys Earn Multiple Recognitions
September 01, 2026 —
Ball Janik LLPOrlando, FL, August 20, 2026 – Ball Janik LLP is pleased to announce that 24 of its attorneys have been recognized in the 2027 editions of The Best Lawyers in America® and Best Lawyers: Ones to Watch® in America. The 33rd Best Lawyers edition recognitions are based on peer review and highlight attorneys across a range of practice areas. This recognition underscores the broad experience Ball Janik's attorneys bring to the firm's construction defect practice.
"We're proud to be recognized by Best Lawyers again this year," said James C. Prichard, Managing Partner of Ball Janik LLP. "These honors reflect the expertise and depth of our team, our continued growth across Florida, and our commitment to providing strong counsel to clients in complex construction, insurance recovery, and litigation matters."
Ball Janik attorneys recognized in the 2027 edition of The Best Lawyers in America® include:
Keegan A. Berry — Construction Law
Brian T. Crevasse — Construction Law; Litigation - Construction
Todd Demetriades — Litigation - Construction
Joseph R. Fitos — Construction Law; Litigation - Construction
Megan A. Picataggio — Construction Law
Jon E. Lemole — Construction Law; Litigation - Construction
Salvatore G. Scro — Construction Law
Nicholas B. Vargo — Construction Law; Litigation - Construction
Kelly M. Corcoran — Construction Law
Gabriel Z. Coelho — Construction Law
Evan J. Small — Construction Law; Litigation - Construction
Franchesco Soto — Construction Law; Litigation - Construction
Phillip E. Joseph — Litigation - Construction; Real Estate Law
James C. Prichard — Construction Law
Ball Janik attorneys recognized in the 2027 edition of Best Lawyers: Ones to Watch® in America include:
Nicholas Passantino — Litigation - Construction
Amanda L. Gonzalez — Construction Law; Litigation - Construction
Morgan N. Lester — Litigation - Construction
Chris S. Tribbey — Construction Law
Kyle Bugden — Construction Law; Litigation - Construction
Brian Tannenbaum — Construction Law
Kayla Mosquera — Insurance Law
Natasha L. Biela — Commercial Litigation
Elijah C. Waring, Jr. — Product Liability Litigation - Defendants
Greg K. Demers — Construction Law
About Ball Janik LLP
Ball Janik LLP is a Florida-based law firm offering construction defect, construction law, insurance recovery, and commercial litigation counsel, to its local and national clients. The firm was founded in 1982 and has expanded its capabilities, professionals, and geographic footprint. What started as a small firm focused on real property, land use, and litigation (known then as Ball Janik & Novack) has grown to a team of 70-plus attorneys and paralegals in five offices in Florida, with centuries of combined experience and capabilities. The firm has been recognized by Chambers USA, including for its construction law capabilities in Florida, U.S. News & World Report and Best Lawyers®, The Best Lawyers in America©, Super Lawyers, and Corporate International. Read more at www.balljanik.com.
Building in Arizona’s Data Center Boom: How Federal Executive Orders, State Regulation, and National-Security Policy Are Reshaping the Rules for Developers
June 02, 2026 —
Ryan J. Regula - Snell & WilmerDevelopers and practitioners evaluating data center projects in Arizona face a regulatory environment shifting on three fronts simultaneously. Federal executive orders are opening new land, streamlining permitting, and channeling financial incentives toward qualifying projects — but they are not preempting the state and local rules that most directly affect project economics. A carve-out in the December 2025 Artificial Intelligence (AI) Framework Executive Order preserves Arizona’s authority over data center infrastructure, meaning the Arizona Corporation Commission’s (ACC) rate-classification docket, municipal zoning restrictions, water-use ordinances, and pending grid cost-allocation legislation remain the binding constraints on project feasibility. Understanding where federal tailwinds end and state and local headwinds begin is essential for any developer sizing risk or selecting sites in the state.
The Federal Landscape: An Interlocking Framework of Executive Orders
Five interlocking executive orders are accelerating data center development nationally, but none overrides Arizona’s authority over siting energy, or infrastructure.
Read the full story...Reprinted courtesy of
Ryan J. Regula, Snell & WilmerMr. Regula may be contacted at
rregula@swlaw.com
Legal 500 US Ranks Hunton’s Insurance Coverage Team Among Top Policyholder Practices in 2026 Guide
July 06, 2026 —
Hunton Insurance Recovery BlogHunton’s insurance coverage practice was once again recognized among the nation’s top policyholder insurance practices, receiving a Band 2 national ranking in the 2026 United States Edition of The Legal 500 for Insurance: Advice to Policyholders. The Legal 500 recognizes firms solely based on merit through numerous factors including client feedback and peer input.
Bolstering the team’s national recognition, several coverage lawyers received individual accolades: special counsel
Lorelie “Lorie” S. Masters was named to The Legal 500’s Hall of Fame; team head
Syed S. Ahmad and partner
Michael S. Levine were named Leading Lawyers; and partners
Andrea DeField and
Latosha M. Ellis were named Next Generation Partners. In addition, partners
Walter J. Andrews,
Lawrence J. Bracken II, and
Koorosh “KT” Talieh were recognized as Key Lawyers on the team.
Read the full story...Reprinted courtesy of
Hunton Andrews Kurth LLP
Voluntary Dismissal of an Indemnity Claim Does Not Make the Subcontractor a “Prevailing Party,” Washington Court of Appeals Holds
September 21, 2026 —
Margarita Kutsin - Ahlers Cressman & Sleight PLLCIn
King County v. Walsh Construction Company II, LLC, No. 86503-0-I (Wash. Ct. App. Aug. 4, 2025), an unpublished decision from Division I of the Washington Court of Appeals, the Court affirmed the denial of a subcontractor’s request for prevailing-party attorney fees under an indemnity clause after the general contractor voluntarily dismissed its indemnity claims. Because the indemnity claim was no longer live and no determination of fault had occurred, the Court held that the trial court did not err in denying the request. ACS represented Walsh, the general contractor, in securing the denial of the fee request at the trial court that the Court of Appeals affirmed.
A Pass-Through Indemnity Claim That Ended Before Fault Was Decided
The dispute arose out of a public works contract under which King County hired Walsh Construction Company II, LLC (“Walsh”) to construct and install a conveyance pipeline. After the pipeline broke, King County sued Walsh for breach of contract and warranty, expressly identifying both Walsh and its subcontractor, Mears Group Inc., (“Mears”) as responsible. Walsh tendered defense and indemnity to Mears under the subcontract.
Read the full story...Reprinted courtesy of
Margarita Kutsin, Ahlers Cressman & Sleight PLLCMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
Snell & Wilmer’s Orange County Office Recognized as One of the “Best Places to Work” by the Orange County Business Journal
August 16, 2026 —
Snell & WilmerORANGE COUNTY – Snell & Wilmer is pleased to announce that its Orange County office has been selected as one of the 2026 “Best Places to Work in Orange County” by the Orange County Business Journal. This recognition honors outstanding employers that foster exceptional workplace cultures and demonstrate a strong commitment to employee engagement, professional development, and organizational excellence.
The annual awards recognize Orange County employers that create positive workplace environments and set the standard for employee satisfaction and organizational success. Honorees are selected through a comprehensive evaluation process that includes confidential employee surveys and an independent assessment of company policies, practices, philosophy, systems, and demographics.
Read the full story...Reprinted courtesy of
Snell & Wilmer
