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
Arizona Court of Appeals Clarifies Homeowners Association Open Meeting Requirements
June 29, 2026 —
Jill Casson Owen, Benjamin J. Hawkins & Stephen Wright - Snell & WilmerA Z N H Revocable Trust v. Sunland Springs Village Homeowners Association, No. 1 CA-CV 25-0424 (Ariz. Ct. App. Apr. 28, 2026)
OVERVIEW
The Arizona Court of Appeals issued an opinion clarifying how homeowners associations must conduct meetings under A.R.S. § 33-1804. The decision reinforces the legislative policy favoring transparency in association governance, bringing association meeting requirements more in line with the open meeting standards applicable to public bodies under A.R.S. § 38-431 et seq. (Arizona’s Open Meeting Law).
KEY HOLDINGS
1. All Voting and Formal Actions Must Occur in Open Meetings
The Court affirmed that association boards cannot vote or take formal action during closed (executive) sessions. Under A.R.S. § 33-1804(A), associations may close portions of meetings only for “consideration” of certain enumerated topics, such as legal advice, pending litigation, or personal/financial information about individual members. The Court interpreted “consideration” to mean discussion and deliberation, not voting. The Court noted that dictionaries define “consider” as “spending time thinking about a possibility” and “formulating an opinion,” which are processes that precede formal action. This interpretation mirrors how Arizona’s Open Meeting Law (A.R.S. § 38-431.03(D)) prohibits public bodies from voting in executive session.
Reprinted courtesy of
Jill Casson Owen, Snell & Wilmer,
Benjamin J. Hawkins, Snell & Wilmer and
Stephen Wright, Snell & Wilmer
Ms. Owen may be contacted at jowen@swlaw.com
Mr. Hawkins may be contacted at bhawkins@swlaw.com
Mr. Wright may be contacted at swright@swlaw.com
Read the full story...
The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues
August 03, 2026 —
William L. Porter - Porter Law GroupIt is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction.
Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise.
Read the full story...Reprinted courtesy of
William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
One Industry, One Goal: Construction Safety Week 2026
May 05, 2026 —
Maggie Murphy - Construction ExecutiveConstruction safety has long been a top priority across the industry. Yet fatality rates have remained stubbornly flat for more than a decade. Steven Carter, global health and safety director at
Gilbane chair company for
Construction Safety Week 2026—believes the industry has reached a pivotal moment. This year’s theme—”
All In Together: Recognize. Respond. Respect.”—is a unified call to action for owners, designers, contractors and craft professionals around a shared, risk-based approach to preventing serious injuries and fatalities.
In a recent interview with Construction Executive, Carter discusses why the industry must move beyond incremental improvements, how technology and AI can support better planning and what it will take to create a true culture of psychological safety on jobsites.
Reprinted courtesy of
Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
Snell & Wilmer’s San Diego Office Ranked #1 “Best Place to Work” by the San Diego Business Journal
September 01, 2026 —
Snell & WilmerSAN DIEGO – Snell & Wilmer is proud to announce that its San Diego office has been named the
#1 Best Place to Work in the Large Business category by the San Diego Business Journal as part of its
2026 Best Places to Work awards. The annual recognition honors outstanding employers across the San Diego region that are setting the standard for workplace culture and employee engagement. Rankings are based on confidential employee surveys conducted by Workforce Research Group, which evaluate organizations on leadership, corporate culture, communication, employee engagement, and other key workplace factors.
“Being recognized as the #1 Best Place to Work in the Large Business category is an incredible honor because it reflects the experiences and feedback of our own team,” said
Bardia Moayedi, managing partner of Snell & Wilmer’s San Diego office. “Our people are the foundation of everything we do, and this recognition speaks to the collaborative, inclusive, and supportive culture they have helped create. I am grateful to every member of our San Diego office for making this an exceptional place to build a career, serve our clients, and give back to our community.”
Read the full story...Reprinted courtesy of
Snell & Wilmer
No Ink, No Problem: When Employees and Agents Can Enforce Arbitration Agreements
August 11, 2026 —
Jordan Heath & Jacob Morrison - ConsensusDocsArbitration is a fundamental component of modern construction contracting. Many in the industry recognize the potential benefits and protections arbitration can provide to the business in the event of a dispute. But an important question many contracts do not address is: who does the arbitration agreement cover? Does it include the business entity only, or the individuals acting on behalf of the entity?
As courts have long recognized, entities can generally only act through their employees, representatives, or agents.[1] This article discusses the circumstances in which an agent may rely on an arbitration provision entered by its employer. This is known as the agency doctrine.
Reprinted courtesy of
Jordan Heath, Associate, Jones Walker LLP and Jacob Morrison, Law Student University of Georgia, Jones Walker LLP
Read the full story...Mr. Heath may be contacted at
jheath@joneswalker.com
Beyond the Storm: How Non-Hurricane Catastrophes Expose Florida’s Construction Defect Blind Spot
August 11, 2026 —
Franchesco “Frank” Soto & Amanda L. Gonzalez - Ball JanikOn June 8, 2026, a magnitude 6.1 earthquake struck the Gulf near the coast of Cuba, the largest instrumentally recorded earthquake in the Gulf since seismic monitoring began in 1950. Buildings swayed, offices were evacuated, and many residents along the east coast of Florida, from Miami-Dade to Jacksonville, felt the ground shake. Although no tsunami followed and reported structural damage was limited, this event exposed a blind spot that Florida property owners, developers, and their counsel cannot afford to ignore: catastrophic stress on Florida buildings does not always come in the form of a named storm.
Florida property owners have grown accustomed to preparing for wind, storm surge, floods, and torrential rain. Far less attention is paid to earthquakes, sinkholes, tornadoes, hail, and non-tropical flooding, each of which can place unexpected stress on buildings not designed with those forces top of mind and can trigger deficiencies in buildings that were not otherwise known, expose design failures, and create an urgency for both insurance claims and subsequent litigation.
Non-Hurricane Triggers of Latent Defects
Seismic activity is the clearest example. Florida’s building code accounts for wind loads, not seismic forces, meaning even a moderate earthquake can reveal weaknesses in curtain wall systems, structural connections, or foundations that were already marginal. Sinkholes, driven by Florida’s karst limestone geology, remain a persistent threat, particularly in Central Florida, where subsurface voids can undermine foundations without warning. Non-tropical flooding, like the record rainfall that flooded South Florida in June 2024, can intrude through building envelopes and waterproofing systems that were never stress-tested for such volumes of water. Tornadoes and hail, while more localized, can cause roofing and envelope failures that mimic, mask, or trigger latent construction defects.
The Litigation and Coverage Disputes That Follow
When one of these events strikes a building already carrying undisclosed or unresolved construction defects, the resulting disputes become considerably more complex. Property owners and associations must move quickly to document existing conditions and distinguish damage caused by the event from pre-existing defective construction, the same causation issue that arises in the hurricane context under Chapter 558, but often without the benefit of established precedent or adjuster experience with these less common events.
Insurance coverage disputes frequently follow close behind. Carriers may dispute whether an earthquake, flood, or other peril is covered at all, particularly where policies contain earthquake or flood exclusions requiring separate endorsements, or anti-concurrent causation language that can bar coverage entirely when a covered peril combines with an uncovered one, such as pre-existing defective construction, to cause a loss. Sinkhole claims carry their own statutory framework under Florida law, requiring specific testing protocols and reporting before a claim is compensable. Developers and contractors, in turn, may find themselves defending Chapter 558 claims while simultaneously litigating with their own carriers over defense and indemnity obligations.
Practical Risk Mitigation Strategies
Property owners, associations, and developers can take several concrete steps to reduce their exposure. First, maintain thorough documentation, including engineering reports, maintenance logs, and photographs, well before any event occurs. This documentation is often the deciding factor in causation disputes. Second, engage structural engineers and consultants immediately following any seismic event, unusual flooding, or storm damage, regardless of whether a hurricane is involved. Prompt inspection preserves evidence and can help prevent inadvertent waiver of construction defect claims. Third, review insurance policies regularly with counsel or a broker to confirm earthquake, flood, and sinkhole coverage matches the property’s actual risk profile, rather than assuming a standard property policy responds to every peril. Fourth, avoid rushing to remediate before conditions are documented and/or before consulting counsel. Well-intentioned repairs can inadvertently compromise evidence needed to prove a defect claim.
The June earthquake was a reminder that Florida’s catastrophic risk profile extends beyond hurricane season. Property owners, associations, and developers who build readiness plans around all forms of catastrophic stress, not just named storms, will be far better positioned when the next unexpected event occurs.
Franchesco “Frank” Soto is a partner in
Ball Janik’s Construction Defect Practice Group in Miami. He may be reached at fsoto@balljanik.com.
Amanda L. Gonzalez is a litigation attorney in
Ball Janik’s Construction Defect Practice Group in Miami. She may be reached at agonzalez@balljanik.com.
In the Eye of the Beholder: Court of Appeal Finds Duty of Care Owed by Owner and Contractors for Death of Minors Caused by Independent Truck Driver
May 05, 2026 —
Garret D. Murai - California Construction Law BlogI was a T.A. for my high school history teacher, a really smart and nice guy, Mr. Reynolds. In the room at the back of the classroom which served as his office he had
the picture above. It’s called “My Wife and My Mother-in-Law” and is taken from a German postcard from 1888. Depending on how you look it, you might see fashionable young lady, or an old lady.
Cases can sometimes be like that: You see what you want to see. The next case is also like that.
In
Lorenzo v. Calex Engineering, Inc., 110 Cal.App.5th 49 (2025), the 2nd District Court of Appeals reversed a motion for summary judgment granted in favor of an owner and its contractors in a case involving the death of two minors struck by a dump truck enroute to a non-permitted off-site staging area.
Read the full story...Reprinted courtesy of
Garret D. Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com