Vacant Building Negates Coverage for Broken Pipe
September 01, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe Michigan Court of Appeals found the insured was not covered for water damage because the commercial space was left vacant. Cherry Hill Recreation Center, Inc. v. Conifer Ins Co., 2026 Mich, App. LEXIS 5099 (Mich Ct. App. June 18, 2026).
Alan Abbas purchased a bowling alley. Due to the onset of the COVID-19 pandemic and executive orders issued by the governor, Abbas was unable to operate the bowling center for several months. During the winter, Abbas allowed the thermostat to drop significantly, with the building expected to be around 43 degrees Fahrenheit. He later admitted the sprinkler system’s pipes were not protected against freezing.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Federal Court Strikes Down New York’s Climate Superfund Act: What It Means for the “Polluter Pays” Movement
September 28, 2026 —
Amanda G. Halter, Ashleigh K. Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law BlogA federal judge in the Northern District of New York has struck down New York’s
Climate Change Superfund Act, ruling that the “polluter pays” climate law is preempted by federal law and “simply beyond the limits of state law.” The court concluded that the Clean Air Act (CAA) does not authorize New York’s compensation scheme, which calculates liability based on greenhouse gas (GHG) emissions attributable to worldwide fossil fuel extraction and refining. It separately held that any cost-recovery demand against a foreign producer would be preempted under the constitutional foreign affairs doctrine, which limits state intrusion into matters committed predominantly to the federal government. The court directed the parties to file a status report by September 14, leaving the form of further relief unresolved. In practical terms, the court has decided that the Act is preempted and cannot be enforced but has not yet determined the precise terms of its final order, including whether to formally enjoin its enforcement.
The
decision in West Virginia v. James, Case No. 1:25-cv-00168 (N.D.N.Y. Aug. 31, 2026), issued by Chief U.S. District Judge Brenda K. Sannes, who was appointed by President Obama, marks the first judicial invalidation of a state climate superfund statute and carries significant implications for the
climate superfund landscape and the three remaining
lawsuits challenging these laws.
Reprinted courtesy of
Amanda G. Halter, Pillsbury,
Ashleigh K. Myers, Pillsbury and
Jillian Marullo, Pillsbury
Ms. Halter may be contacted at amanda.halter@pillsburylaw.com
Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com
Ms. Marullo may be contacted at jillian.marullo@pillsburylaw.com
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Insurer’s Federal Suit Dismissed in Favor of Insured’s State Suit
April 14, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court granted the insured’s motion to dismiss the insurer’s federal suit for declaratory judgment because the insured filed a more complete action in state court. Church Mut. Ins. Co. v. Elmwood Baptist Church, 2025 U.S. Dist. LEXIS 259762 (S.D. W.V. Dec. 16, 2025).
Elmwood purchased a property policy from Church Mutual Insurance Company. After the roof of Elmwood’s property collapsed, the parties disputed the amount Church Mutual owed to Elmwood.
Church Mutual filed suit in federal district court asking for a declaration that the policy was “void ab initio,’ or, alternatively, that Church had fully compensated Elmwood for its loss.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Nomos LLP Partner Garret Murai Recognized by Super Lawyers
July 13, 2026 —
Garret D. Murai - California Construction Law BlogNomos LLP Partner Garret Murai has been recognized as a 2026 Northern California Super Lawyer honoree in the area of Construction Litigation. This is the thirteenth consecutive year he has been recognized by Super Lawyers.
Super Lawyers, an annual listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and personal achievement, is limited to no more than five percent (5%) of lawyers in a state who are selected through a multiphase process that includes a statewide survey of lawyers, independent research evaluation and peer reviews by practice area.
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Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
GRSM Secures Illinois Appellate Victory for Architectural Firm in Implied Warranty Dispute
May 14, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani Partner Jonathan Federman, Partner Thomas Cronin, and Senior Counsel Garrett Lee recently secured a victory in the Illinois Appellate Court, Fifth District, on behalf of the firm’s client, an architectural firm, in a liability dispute.
The case arose following an entity’s purchase of a 111-unit building for use as an investment or rental property. The plaintiff made claims against the architect of the building, alleging that there were design defects that breached an implied warranty, as well as a negligence claim.
GRSM argued that an architect could not be liable for implied warranties, particularly for an implied warranty which no Illinois court has ever recognized. GRSM further argued that Illinois law bars an architect from liability for negligence arising from a duty pursuant to contract under the economic loss doctrine.
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Gordon Rees Scully Mansukhani
Construction Attorneys: Contract Negotiation Strategy
September 01, 2026 —
Construction ExecutiveContract negotiation is where project expectations become enforceable business obligations. A reasonable bid can become a high-risk agreement when the final contract expands the scope, shortens notice periods, limits payment rights or transfers liability that was never included in the price. Construction attorneys help project leaders identify those consequences before execution.
Their role is not to eliminate every risk or prolong negotiations. It is to determine which risks can be controlled, insured, priced, shared or rejected while preserving a workable deal. The financial stakes can be substantial.
HKA's 2025 analysis of more than 2,200 distressed construction and engineering projects found that disputed costs averaged 33.4% of contract budgets. Scope changes affected more than 28% of the projects studied and remained the most common cause of conflict. In North America,
the average dispute studied by Arcadis in 2024 had a value of $60.1 million and took 12.5 months to resolve.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Balancing the Right to Repair With Evidence Preservation in Construction Defect Litigation
April 20, 2026 —
Benton Wheatley & Anna Spicer - Construction ExecutiveEvery 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.
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