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Doctrine of Substantial Performance When It Comes to Payment

July 27, 2026 — David Adelstein - Florida Construction Legal Updates
A recent non-construction case touches upon the doctrine of substantial performance when it comes to payment. In this case, a club was to make two payments to secure a rapper’s attendance. The first payment was made. The second payment was made but was a few hundred dollars short of the agreed amount. The rapper did not show up. The club claimed it substantially performed its obligations. At first glance, the argument makes sense because the second payment fell only a few hundred dollars short. But that wasn’t the case when it comes to pre-commencement payment obligations:

Substantial performance applies only when the variance from the contract terms “is inadvertent or unintentional and unimportant so that the work actually performed is substantially what was called for in the contract.” However, when one party agrees to pay the other on or before a specific date, time is of the essence, and the payor is required to pay the payee on or before that date. “There is almost always no such thing as ‘substantial performance’ of payment between commercial parties when the duty is simply the general one to pay. Payment is either made in the amount and on the date due, or it is not.”

Big Gate Records, LLC v. Washington, 51 Fla.L.Weekly D1281a (Fla. 2nd DCA 2026) (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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The Grenfell & Champlain Towers: Risk Management Considerations in the Wake of Catastrophic Loss — A UK/US Comparison

June 02, 2026 — Eric M. Clarkson - Saxe Doernberger & Vita, P.C.
1. Introduction As part of the multinational collaborative relationship between Saxe Doernberger & Vita, P.C. and Fenchurch Law, we continually find ourselves in conversations about the sometimes subtle but sometimes drastic differences between risk management and coverage considerations from one country to the next. These differences are often highlighted by the fallout from large catastrophic losses that are widely publicized and illuminate sometimes widespread risks and perils that many others may be facing in the coming years. The response of governments and their subdivisions to the needs of victims and/or commercial parties, and insurance markets’ evaluation of and reactions to catastrophic losses vary widely from country to country and jurisdiction. In this article, we discuss these responses and reactions in the cases of the Grenfell Tower Fire in London, England, and the Champlain Tower collapse in Surfside, Florida, within the United States. These two widely publicized losses involved different risk management and insurance considerations based on where they occurred. They also saw substantially different government responses and raised varied questions about what the next steps are for their respective commercial and insurance markets. Read the full story...
Reprinted courtesy of Eric M. Clarkson, Saxe Doernberger & Vita, P.C.
Mr. Clarkson may be contacted at EClarkson@sdvlaw.com

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We Won’t Permit That Excuse!

June 23, 2026 — Curt Martin & Richard Eiszner - ConsensusDocs
A Texas appellate court recently ruled that a building permit wasn’t a condition precedent for a construction project. That caught our attention. Can you build a commercial project without a permit? But as we read the case, we see the court’s reasoning. And it reminds us of an important legal principle that should inform our contract drafting and negotiation. The case was a civil suit brought by the project owner against its tenant improvement contractor for work on a medical spa. The owner claimed that the contractor didn’t perform the work properly and didn’t finish construction. The contractor argued that delays and problems were caused by the owner, alleging numerous failures, including the owner’s failure to secure a building permit. Reprinted courtesy of Curt Martin, Peckar & Abramson, P.C. and Richard Eiszner, Peckar & Abramson, P.C. Mr. Martin may be contacted at cmartin@pecklaw.com Mr. Eiszner may be contacted at reiszner@pecklaw.com Read the full story...

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Pay-If-Paid: What You Need to Know Before Signing on the Dotted Line

August 03, 2026 — Christian Fernandez & Matthew Racioppo - Snell & Wilmer
Buried deep in the fine print of a subcontract, a pay-if-paid clause may be looming. If you are a subcontractor or supplier, misreading these clauses can put your cash flow at risk. If you are an owner or general contractor, drafting them incorrectly can leave you with obligations you never intended — or unenforceable protections you were counting on. It is more important than ever to understand when pay-if-paid clauses hold up and when they do not, as well as recent litigation and drafting trends. Whether you are negotiating a new agreement, reviewing your standard form contracts, or staring down a payment dispute, understanding how Arizona law treats pay-if-paid clauses is essential. In this article, we break down key considerations, walk through the legal standards Arizona courts apply, and offer practical tips to consider to help you protect your payment rights on the next project. Reprinted courtesy of Christian Fernandez, Snell & Wilmer and Matthew Racioppo, Snell & Wilmer Mr. Fernandez may be contacted at cfernandez@swlaw.com Mr. Racioppo may be contacted at mracioppo@swlaw.com Read the full story...

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Prefatory Contract Language Cannot Be Used to Create an Ambiguity with Operative Provisions

May 12, 2026 — David Adelstein - Florida Construction Legal Updates
Contract drafting and interpretation matters. A case dealt with the potential conflict with prefatory language in an agreement compared with operative provisions in the agreement. The trial court held that the operative provisions control. I discussed this case here where the appellate court reversed based on the prefatory language. But, through a motion for rehearing, the appellate court reconsidered its position and affirmed the trial court based on the operative provisions, mainly that the prefatory language cannot be used to create an ambiguity with operative provisions. Consider this explanation in affirming the trial court:

Because the trial court correctly found that the initial language in the contract was prefatory and could not be used to create an ambiguity in the remainder of the contract, we affirm the final judgment.

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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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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 & Wilmer
Developers 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 & Wilmer
Mr. Regula may be contacted at rregula@swlaw.com

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Five Payne & Fears Attorneys Named 2026 Southern California Super Lawyers

March 10, 2026 — Payne & Fears LLP
Five Payne & Fears attorneys have been named to the 2026 Southern California Super Lawyers list in recognition of their work across a range of practice areas. This honor reflects their dedication to their clients, depth of experience, and the high standard of service they bring to every matter. Read the full story...
Reprinted courtesy of Payne & Fears LLP

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DOI Finalizes Long-Awaited Modernization of Type A Natural Resource Damage Assessment Regulations

August 03, 2026 — Amanda G. Halter, Ashleigh K. Myers & Jillian Marullo - Gravel2Gavel Construction & Real Estate Law Blog
For nearly three decades, the U.S. Department of the Interior’s (DOI) simplified “Type A” Natural Resource Damage Assessment (NRDA) regulations were available more in theory than in practice, constrained by dated models, narrow geographic applicability and a $100,000 cap that rarely matched the economics of modern environmental claims. DOI has now finalized revisions to the Type A natural resource damages assessment procedures under 43 C.F.R. Part 11 for hazardous substance releases under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the Clean Water Act (CWA), with the final rule published in the Federal Register on July 13, 2026 and scheduled to become effective August 12, 2026. As discussed previously, DOI has sought to modernize what it views as an “inefficient and inflexible” process and restore the Type A procedure to its intended role as a more streamlined pathway for smaller, less contentious NRD claims. The final rule adopts a $5 million default damages threshold, allows use above that amount if all parties agree, clarifies that Type A may be used in all environments and for all natural resource types, and removes legacy model appendices that had tethered the process to outdated formulas. 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 Read the full story...

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