The AI Knows Too Much: When Employees Feed Trade Secrets into Generative AI Tools
April 14, 2026 —
Kazim A. Naqvi & John V. Mysliwiec - SheppardEvery time an employee pastes proprietary source code, a customer list, or a confidential business strategy into
ChatGPT,
Claude, or
Google Gemini, they may be quietly dismantling the legal protections that make those secrets worth protecting. Courts and regulators are only beginning to grapple with this problem, and right now, the burden of preventing it falls squarely on employers.
The Legal Stakes
Under the federal
Defend Trade Secrets Act (“DTSA”) and the
Uniform Trade Secrets Act (“UTSA”) as adopted across most states, a trade secret plaintiff must show that the information at issue was subject to reasonable measures to maintain its secrecy. Courts have historically credited measures like confidentiality agreements, physical access controls, and employee training—but those safeguards were designed for a world of thumb drives and disgruntled employees. They were not built for a world where a well-meaning engineer can, in seconds, transmit an entire corpus of proprietary data to a third-party AI platform operating under terms of service that may permit the provider to use inputs for model training.
Reprinted courtesy of
Kazim A. Naqvi, Sheppard and
John V. Mysliwiec, Sheppard
Mr. Naqvi may be contacted at knaqvi@sheppard.com
Mr. Mysliwiec may be contacted at jmysliwiec@sheppard.com
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White and Williams LLP Secures Trio of Cyber Coverage Wins
May 12, 2026 —
Gabriel Darwick & Sean Elman - White and Williams LLPThree weeks, three jurisdictions, three cyber wins.
White and Williams picked up the first victory on March 9, 2026, in the United States District Court for the Western District of Texas, where the court granted summary judgment to their client enforcing a Cyber Crime Loss sublimit. See Perry & Perry Builders, Inc. v. Cowbell Cyber and Obsidian Specialty Ins. Co., 2026 U.S. Dist. LEXIS 49409 (E.D. Tex. Mar. 9, 2026). In Perry, the insured was deceived into transferring money intended for a vendor to an unintended third party. The insurer acknowledged that the loss was covered and paid the insured the policy’s Cyber Crime Loss sublimit. Discontent with a single sublimit, the insured argued that because it wired the money to the fraudster in separate transfers, it was entitled to a second Cyber Crime Loss sublimit.
Reprinted courtesy of
Gabriel Darwick, White and Williams LLP and
Sean Elman, White and Williams LLP
Mr. Darwick may be contacted at darwickg@whiteandwilliams.com
Mr. Elman may be contacted at elmans@whiteandwilliams.com
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GRSM Partner Debra Ellwood Meppen Recognized as 2026 Legal Visionary by Los Angeles Times
June 02, 2026 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani proudly congratulates Partner Debra Ellwood Meppen on being named a 2026 Legal Visionary by the Los Angeles Times. The LA Times Studios 2026 Legal Visionaries List recognizes lawyers in Southern California who “exemplify a forward-thinking approach to the law, elevating both their profession and the people who depend on it.” Meppen is recognized for helping shape the future of the legal profession through her leadership, professionalism, and integrity.
Published as part of the May 2026 issue highlighting Southern California’s leading law firms and attorneys, the Legal Visionaries section honors attorneys making a significant impact on the legal industry and the broader business community.
Read the full story...Reprinted courtesy of
Gordon Rees Scully Mansukhani
Pulling the Plug, Preserving the Product: Protecting Rights to a Modular Subcontractor’s Work Post-Termination
June 08, 2026 —
Paul Williamson - ConsensusDocsVolumetric Modular Construction (VMC) is a building method where a structure is divided into large components or modules, fabricated in an offsite factory and then transported to a construction site for assembly.[
1] Proponents of VMC hail it as a cost-efficient alternative to traditional building methods that leads to more consistent quality and shorter construction duration.[
2] Due to a growing labor shortage, high demand for compressed project schedules, and stagnant construction productivity rates, the construction industry is embracing VMC.[
3] A recent report on the market size of prefabricated construction estimates that from 2026 to 2031, VMC will grow at a compound annual growth rate of 7.16% and become a 413.11-billion-dollar industry.[
4]
As VMC becomes more prevalent, owners, general contractors, and subcontractors must consider how to effectively contract for modular construction. One important consideration, which this article focuses on, is navigating termination of a modular subcontractor.
Read the full story...Reprinted courtesy of
Paul Williamson, Peckar & Abramson, P.C.Mr. Williamson may be contacted at
pwilliamson@pecklaw.com
Powering Data Centers in a Moving Regulatory Landscape: Positioning Deals Before FERC’s Next Move
April 27, 2026 —
Stephen J. Humes, Alicia M. McKnight & Andrew H. Jacobs - Gravel2Gavel Construction & Real Estate Law BlogThe explosive growth of data‑center load—driven by artificial intelligence, cloud computing and the expansion of digital infrastructure across industries—has forced U.S. energy regulators into unfamiliar territory. Nowhere is this more evident than at the Federal Energy Regulatory Commission (FERC), which is actively considering how large, concentrated loads can be powered without compromising grid reliability or shifting costs to other customers.
FERC has not yet issued a standalone rulemaking on data centers. But make no mistake, the regulatory framework is quietly and deliberately being built. For developers, hyperscalers, utilities and investors, the period before FERC finalizes its next round of decisions represents the critical window to crystallize advocacy and structure transactions in ways that anticipate regulatory change.
Reprinted courtesy of
Stephen J. Humes, Pillsbury,
Alicia M. McKnight, Pillsbury and
Andrew H. Jacobs, Pillsbury
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. McKnight may be contacted at alicia.mcknight@pillsburylaw.com
Mr. Jacobs may be contacted at andrew.jacobs@pillsburylaw.com
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Amended Again?! Critical Changes to RPAPL § 881: What New York Contractors and Construction Managers Need to Know
March 10, 2026 —
Mark A. Snyder & David Polazzi - Peckar & Abramson, P.C.Recent amendments to New York’s RPAPL § 881 will significantly change how project teams obtain and maintain access to adjoining properties for construction-related work. The 2025 amendment signed into law by Governor Hochul, and the newly enacted 2026 revisions, will directly impact general contractors (GCs) and construction managers (CMs), as well as their trade contractors who regularly confront neighbor‑access, support‑of‑excavation, and protection‑of‑adjoining‑property challenges. Although we do not advise that GCs and CMs get involved in the “weeds” of license agreements or the prosecution of an action to obtain access pursuant to an RPAPL § 881 action, which are typically owner responsibilities, GCs and CMs should understand the change in law, as there may be circumstances where they are responsible for securing access.
This alert outlines the key statutory changes and explains the operational, scheduling, insurance, and risk‑management implications for the New York construction industry.
Reprinted courtesy of
Mark A. Snyder, Peckar & Abramson, P.C. and
David Polazzi, Peckar & Abramson, P.C.
Mr. Snyder may be contacted at msnyder@pecklaw.com
Mr. Polazzi may be contacted at dpolazzi@pecklaw.com
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Two Snell & Wilmer Attorneys Selected as 2026 San Diego Super Lawyers Rising Stars
May 14, 2026 —
Snell & WilmerSAN DIEGO – Snell & Wilmer is pleased to announce that two attorneys in the San Diego office have been selected for inclusion in the
2026 San Diego Super Lawyers Rising Stars publication.
Rising Stars is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. To be eligible for inclusion, a candidate must be either 40 years old or younger or in practice for 10 years or less. The selection process is multi-phased and includes independent research and peer nominations, with no more than 2.5 percent of the lawyers in the state named to the Rising Stars list.
Read the full story...Reprinted courtesy of
Snell & Wilmer
Lost in Translation: AEC Tech’s Missing Role
May 12, 2026 —
Aarni Heiskanen - AEC BusinessI once visited a construction site where the contractor’s headquarters had commissioned a tech company to build an on-site quality-inspection application. The developer had admitted to the site engineer that they had never set foot on a construction site before. The engineer showed me what he was actually using: his own phone camera and an Excel sheet. The new app did not map to how work actually happened on site.
This is not an isolated story. The vendor builds something technically coherent but operationally disconnected. The client, somewhere up the chain, had fallen in love with the idea of the solution before anyone had built an honest business case for it.
The result is a tool that gets demonstrated at a board meeting but isn’t used in the field.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi