CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - THURSDAY, FEBRUARY 26, 2026

Gavel with scales of justice in background

For contractors, developers, associations, insurers, and defense counsel, the practical message is clear. Chapter 558 compliance is no longer a box to check, it is a strategic imperative.

Florida's Third DCA Reasserts the Teeth of Chapter 558 and the Future of Construction Defect Litigation

February 23, 2026
Ryan C. Brooks & Keith G. Salhab - Wood Smith Henning & Berman LLP

The case of Moss & Associates, LLC v. Daystar Peterson and Brickell Heights East Condominium Association, Inc. represents a quiet but significant correction in Florida construction law litigation. The Florida Third District Court of Appeal granted a petition for writ of certiorari and quashed a trial court order that denied a contractor's motion to stay litigation under Chapter 558, Florida Statutes.

Though procedurally narrow, the ruling reflects an increasingly assertive appellate stance. Chapter 558's pre-suit notice and right-to-repair process is mandatory, jurisdictional in effect, and not subject to dilution by trial-level discretion. At its core, the opinion reinforces a foundational principle. Florida intends for construction defect disputes to be managed, investigated, and often resolved before they reach a courtroom. The Third DCA's insistence on strict statutory compliance signals to trial courts, and to the plaintiffs' bar, that procedural shortcuts will not be tolerated.

Reprinted courtesy of Ryan C. Brooks, Wood Smith Henning & Berman LLP and Keith G. Salhab, Wood Smith Henning & Berman LLP

Mr. Brooks may be contacted at rbrooks@wshblaw.com
Mr. Salhab may be contacted at ksalhab@wshblaw.com

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CDJ NEWS THIS WEEK

Winding Road Timeline

For owners, developers, general contractors, and their in‑house counsel, this change will shift risk assessment, contract enforcement, and litigation strategy to the very front end of a claim—particularly in New York Labor Law and construction defect cases.

The AVOID Act: A New Timeline for Liability in New York Construction Projects

February 23, 2026 — Meghan Douris - The Construction Seyt

By April 18, 2026, New York construction litigation will operate on a faster—and far less forgiving—timeline. The Avoiding Vexatious Overuse of Impleading to Delay (the “AVOID Act”), signed into law on December 19, 2025, fundamentally rewrites third‑party practice under CPLR § 1007 by imposing strict deadlines to bring subcontractors, suppliers, and other responsible parties into a case.

For owners, developers, general contractors, and their in‑house counsel, this change will shift risk assessment, contract enforcement, and litigation strategy to the very front end of a claim—particularly in New York Labor Law and construction defect cases.

What Changed—and Why It Matters to Construction Cases
Historically, New York defendants could implead subcontractors and other players well into discovery. The AVOID Act ends that practice.

Ms. Douris may be contacted at mdouris@seyfarth.com

Reprinted courtesy of Meghan Douris, Seyfarth Shaw LLP

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Wind storm roof damage of commercial building

A windstorm struck and damaged the building owned and insured by Nashville Communications (NashComm).

Appraisal Award Upheld Despite Insurer’s Contention that Causation was Considered

February 23, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The federal district court in Tennessee granted the insured’s motion for summary judgment finding the appraisal award was properly determined despite the insurer’s argument that the appraisal panel considered causation of the loss. Nashville Communications, Inc. v. Auto-Owners (Mutual) Ins. Co., 2025 U.S. Dist. LEXIS 223455 (M.D. Tenn. Nov. 13, 2025)

A windstorm struck and damaged the building owned and insured by Nashville Communications (NashComm). A claim was submitted to the insurer, Auto-Owners, for damage to the roof and interior water leakage. Auto-Owners acknowledged that there was some amount of wind damage to the building from the wind event.

Mr. Eyerly may be contacted at te@hawaiilawyer.com

Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert

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Businessman wearing boxing gloves

Travelers' attorney warned of broad consequences in a time of wildfires, and argued that microscopic particles were common inside walls.

Why Travelers Fought a Fire Claim for Invisible Smoke Damage

February 23, 2026 — Elaine Silver - Engineering News-Record

Just 40 minutes after midnight on Sept. 27, 2018, the sky lit up over Birmingham, Ala. A fire engulfed an apartment building under construction—the last-to-be completed section of a wood-framed complex called the Metropolitan. It fueled one of the largest recorded blazes in the city’s history.

ENR may be contacted at enr@enr.com

Reprinted courtesy of Elaine Silver, Engineering News-Record

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Congratulations

Super Lawyers is a rating service recognizing outstanding attorneys across more than 70 practice areas who have achieved high peer recognition and professional accomplishment.

Congratulations to BWB&O’s 2026 Super Lawyers and Rising Stars Honorees!

February 23, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

Bremer Whyte Brown & O’Meara, LLP is proud to announce that Partners Nicole Whyte, Keith Bremer, John Toohey, and Tyler Offenhauser have been named to the 2026 Southern California Super Lawyers list. Notably, Nicole Whyte was also selected to the Top 50 Orange County Super Lawyers list, an honor reflecting her outstanding work, leadership, and impact in the legal community.

Partners Kyle Riddles and Courtney Serrato, along with Associate Kevin Moore, were also recognized as 2026 Southern California Super Lawyers Rising Stars.

Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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Revocable Trust

If the property is owned by the trust does only the trust have standing to file the lawsuit?

Standing When It Comes to Real Property Owned by a Trust

February 23, 2026 — David Adelstein - Florida Construction Legal Updates

It is not uncommon for property to be owned in the name of the trust as part of an estate planning agenda. In construction, improvements are made all the time to real property owned in the name of a trust or later transferred to a trust for estate planning purposes.

In a recent case, the question became that if the property is owned by the trust does only the trust have standing to file the lawsuit. In this case, homeowners, in their individual capacities, sued a flooring contractor for defective work; however, prior to the lawsuit, the homeowners deeded the home (which would include the flooring in the home) to a revocable trust. The plaintiffs, though, were the trustees of the revocable trust and the settlors of the trust.

Mr. Adelstein may be contacted at dma@kirwinnorris.com

Reprinted courtesy of David Adelstein, Kirwin Norris

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Testifying Construction and Building Industry Standard of Care Expert Witness

General Construction Investigation - Licensed General Building Contractor CA, AZ, UT, FL

Certified Professional Estimator (ASPE) American Society of Professional Estimators

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Water on floor

This decision is particularly noteworthy given the rarity of defense summary judgment wins in transitory substance premises liability cases.

Fort Lauderdale Associate Secures Summary Judgment in Rare Premises Liability Win

February 23, 2026 — Lewis Brisbois Newsroom

Fort Lauderdale associate Kyle Hollander recently secured a summary judgment victory for his client, Winn-Dixie, in a contested premises liability case.

This was a hotly disputed liability case of water on the floor near an ice cooler with surveillance footage of a customer constantly bringing bags of ice to and from the cooler to the register. The plaintiff unknowingly stepped into the area of dripped melted ice and fell. Kyle successfully argued based on the plaintiff’s own deposition testimony and the surveillance footage that Winn-Dixie didn’t have the requisite actual notice. Additionally, Kyle argued that the brief duration the condition remained on the floor was legally insufficient to establish constructive notice under Florida law. The Court agreed, finding that the evidence would not survive a directed verdict and granting summary judgment in favor of the defense.

Reprinted courtesy of Lewis Brisbois

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Mechanic's Lien notebook

This year, the Virginia General Assembly is poised to make some big changes if certain legislation gets out of committee and passes the legislature.

A Couple of Mechanic’s Lien Bills in VA [UPDATED]

February 23, 2026 — Christopher G. Hill - Construction Law Musings

Well, its that time of year again, the Virginia General Assembly is in session and looking to make changes to all kinds of things here in the Commonwealth. While most of those changes are well outside of the subject of Construction Law Musings, changes to the mechanic’s lien statutes certainly are not. This year, the Virginia General Assembly is poised to make some big changes if certain legislation gets out of committee and passes the legislature, a description and some comments on these follow:

HB752 – Mechanics’ liens; liens attaching to property; memorandum of lien. [Original Description] Removes the exclusion of the attachment of a mechanic’s lien to property improved or repaired when the lien is based on a claim for repairs or existing structures. The bill further removes (i) the ability of a lien claimant to file any number of memoranda of lien including the details relating to the lien and (ii) the provisions of the Code specifying that no memorandum filed shall include sums due for (a) labor or materials furnished more than 150 days prior to the last day labor was performed or (b) material furnished to the job preceding the filing of such memorandum.

Mr. Hill may be contacted at chrisghill@constructionlawva.com

Reprinted courtesy of The Law Office of Christopher G. Hill

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The End on page in typewriter

Its elimination signals a dramatic recalibration of administrative authority over climate policy and likely tees up a new phase of litigation over the scope of federal environmental regulatory power.

End of an (Endangerment) Era

February 23, 2026 — Sukhmani K. Singh, Christopher P. Colyer & Sean M. Sherlock - Snell & Wilmer

On February 12, 2026, the U.S. Environmental Protection Agency (EPA) announced the repeal of the 2009 Greenhouse Gas (GHG) Endangerment Finding and the elimination of all federal GHG emission standards for motor vehicles and engines.1 The EPA characterized the action as the “single largest deregulatory action in U.S. history.”2 This development marks a fundamental shift in federal climate policy under the Clean Air Act (CAA) and is expected to trigger immediate and extensive litigation.

In Massachusetts v. EPA, the U.S. Supreme Court held that GHGs qualify as “air pollutants” under the CAA and that the EPA must determine whether emissions from new motor vehicles cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare under CAA Section 202(a).3 Following this decision, on December 7, 2009, the EPA issued two findings. First, the EPA classified six different GHGs as threatening public health and welfare. Second, the EPA determined that emissions from new motor vehicles contribute to that endangerment.4 Although the findings themselves imposed no direct regulatory requirements, they served as the legal predicate for GHG emission standards for light-duty and heavy-duty vehicles, and later for other CAA programs affecting statutory sources. In 2012, the U.S. Circuit Court of Appeals for the District of Columbia upheld the Endangerment Finding and related regulations.5

Reprinted courtesy of Sukhmani K. Singh, Snell & Wilmer, Christopher P. Colyer, Snell & Wilmer and Sean M. Sherlock, Snell & Wilmer

Ms. Singh may be contacted at ssingh@swlaw.com
Mr. Colyer may be contacted at ccolyer@swlaw.com
Mr. Sherlock may be contacted at ssherlock@swlaw.com

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California palm trees and sky

The potential listing of this entire class of chemicals poses a significant logistical and compliance challenge for businesses.

Scope of Products Requiring Proposition 65 Warnings in California Poised to Grow

February 23, 2026 — Brian M. Ledger & Chassen B. Palmer - Gordon Rees Scully Mansukhani

The scope of products to be drawn into the warning requirements under California’s Proposition 65 law may soon be growing. California’s Office of Environmental Health Hazard Assessment (OEHHA) requested information from the public on the reproductive toxicity of p,p’-bisphenol chemicals. OEHHA is the lead agency for the implementation of Proposition 65, formerly known as the Safe Drinking Water and Toxicity Enforcement Act of 1986. OEHHA’s request for information is a step toward regulators classifying all p,p’-bisphenol chemicals as reproductive toxicants under Proposition 65.

California’s Proposition 65
Under Proposition 65, businesses are required to post clear and reasonable warnings before individuals are exposed to chemicals listed by the state of California as carcinogens or reproductive toxicants. To date, California has listed approximately 900 chemicals that fall under Proposition 65 regulation. Businesses may be held liable for up to $2,500 per violation per day. Proposition 65 can be enforced by public prosecutors (e.g., the California attorney general or district attorneys) or by private enforcers (known as “bounty hunters”).

Reprinted courtesy of Brian M. Ledger, Gordon Rees Scully Mansukhani and Chassen B. Palmer, Gordon Rees Scully Mansukhani

Mr. Ledger may be contacted at bledger@grsm.com
Mr. Palmer may be contacted at cbpalmer@grsm.com

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Exterior close-up court of law pillars

Because the Underlying Suits sought to hold AGL liable for injuries that were proximately caused (at least in part) by USIC’s conduct, the “additional insured” requirements in the Umbrella Policy were met.

Seventh Circuit Finds “Additional Insured” Requirements Met Where Non-Party Subcontractor Was Proximate Cause of Underlying Injuries

February 23, 2026 — Jason Taylor - Traub Lieberman Insurance Law Blog

In Atlanta Gas Light Company et al v. Navigators Ins. Co., Nos. 24-2888 & 24-2889 (7th Cir. Jan. 22, 2026), the Seventh Circuit Court of Appeals assessed whether an upstream contractor was an “additional insured” under an umbrella policy issued to its subcontractor. Atlanta Gas and Southern Company Gas (“AGL”) hired United States Infrastructure Corporation (“USIC”) to locate and mark gas lines that AGL owned throughout Georgia. In 2018, USIC failed to mark a gas line in Homerville, Georgia, and a boring company struck it, leading to an explosion that severely injured three women. The victims settled their claims with USIC but did not come to terms with AGL. AGL eventually did settle with the victims, but only after they sued AGL in Georgia state court (the “Underlying Suits”). AGL’s service agreement with USIC required USIC to obtain primary and excess liability insurance coverage that included AGL as an additional insured. Because USIC’s settlement with the victims exhausted its primary policy, AGL tendered the defense and indemnification of the Underlying Suits to USIC’s excess insurer, Navigators. Navigators denied the request on the ground that AGL was not an “additional insured” under the policy.

Mr. Taylor may be contacted at jtaylor@tlsslaw.com

Reprinted courtesy of Jason Taylor, Traub Lieberman

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San francisco golden gate bridge

The team secured approval of the project, representing the developer on complex land use issues including split zoning, SB 35, the State Density Bonus Law, the Housing Crisis Act, tribal cultural resources and the Subdivision Map Act.

Land Use Team Wins Appeal for Affordable Senior Housing Development in San Francisco

February 23, 2026 — Sheppard

Sheppard successfully defended client Mitchelville Real Estate Group and its non-profit development partner Bernal Heights Housing Corporation in an appeal of a 70-unit, 100% affordable senior housing development at 3333 Mission Street in San Francisco’s Bernal Heights neighborhood. The team secured approval of the project, representing the developer on complex land use issues including split zoning, SB 35, the State Density Bonus Law, the Housing Crisis Act, tribal cultural resources and the Subdivision Map Act. Although the ministerially approved parcel map for the project utilized SB 35, it was appealed to the San Francisco Board of Supervisors and unanimously rejected. Sheppard’s real estate transactional team also assisted with the acquisition of the property.

Reprinted courtesy of Sheppard

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Construction tools

A Construction Safety Week Bulletin: Recognize high energy, high hazard and STCKY activities.

Recognize: A Construction Safety Week Technical Bulletin

February 23, 2026 — Construction Safety Week - Construction Executive

Construction Safety Week has long been a powerful show of force, a catalyst for bringing the industry together and putting a spotlight on the critical importance of safety. It represents a shared commitment across an expansive and impactful Industry. The construction industry is a major employer and significant contributor to the U.S. economy, creating nearly $2.1 trillion worth of structures each year—and with that scale comes immense responsibility— and opportunity.

Over the last decade, we’ve made meaningful strides: advancing best practices, transitioning from hard hats to helmets, shedding light on vital issues that affect safety, like mental health, fostering a culture of care and accountability, and creating partnerships and initiatives for improving jobsite safety.

Reprinted courtesy of Construction Safety Week, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

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Consulting Design and Architecture Expert Witness

Forensic Architect CA, AZ, NV, CO, TX, UT, FL, NM, OK - NCARB - National Council of Architectural Registration Boards

California Architectural Registration Board Supplemental Examination Commissioner

(800) 482-1822

www.berthowe.com

Tract homes

‘Trump Homes’ Plan to Test Feasibility of Lease-to-Own Model

February 23, 2026 — Prashant Gopal & Patrick Clark - Bloomberg

A proposal to build as many as a million rent-to-own “Trump homes” would put federal backing behind a homeownership model that has long struggled to deliver on its promise.

Lennar Corp. and Taylor Morrison Home Corp. are among the companies working on the effort, which involves selling newly built starter homes into a pathway-to-ownership program funded by private investors. Under one scenario, a portion of the rent tenants pay could serve as credit, after three years, for a down payment to buy the home. The industry is colloquially calling the proposal “Trump Homes” because it could give the president a signature program to address the housing shortage.

Reprinted courtesy of Prashant Gopal, Bloomberg and Patrick Clark, Bloomberg

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Construction workers on site

Commercial Construction Faces Challenges in 2026, But Some Cities May Be Safe

February 23, 2026 — Brian Boschee - Construction Executive

Commercial construction faced national challenges last year including impacts of tariffs on material costs, labor shortages and job declines, delays in supply chains and overall market hesitation stemming from these issues as well as high interest rates and uncertainty as to how the market will correct. However, some markets faced unique challenges, and others advantages.

Reprinted courtesy of Brian Boschee, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

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Insurance application on clipboard

When Builders’ Risk Insurance Starts Dictating Jobsite Decisions

February 23, 2026 — Bryan Gottlieb - Engineering News-Record

Builders’ risk underwriting is no longer just pricing exposure—it is shaping how construction projects are run, as insurers tighten terms and push responsibility for loss prevention deeper into the jobsite.

Mr. Gottlieb may be contacted at gottliebb@enr.com

Reprinted courtesy of Bryan Gottlieb, Engineering News-Record

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Women applauding

Groundbreaking Women in Construction

February 23, 2026 — Beverley BevenFlorez – CDJ Staff

ENR and Peckar & Abramson, P.C. present their annual Groundbreaking Women in Construction event this June in San Diego. The event is comprised of plenary sessions and breakout sessions. Attendees will also have networking opportunities such as breaks, receptions, and exhibits. EarlyBird registration ends on March 31st.

June 14th-16th, 2026
Town and Country Resort
500 Hotel Cir N
San Diego, CA 92108

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Major Winter Storm Slams Northeast US

A nor'easter is barreling through the Northeast, dumping at least a foot of snow or more in some areas and prompting the first blizzard warning for New York City in nearly a decade, ABC News reported.

CDJ Video Channel

How ‘Zombie Mortgages’ Are Coming Back to Haunt Homeowners Years Later

They’re called “zombie mortgages” — debts that homeowners thought were forgiven long ago, only to learn that they still exist and could cost them their homes. Economics correspondent Paul Solman and producer Diane Lincoln Estes report on these back-from-the-dead debts, in partnership with the documentary news group Retro Report.

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Consulting General Contractor - Certified Construction Cost Estimating Expert Witness

Certified Professional Estimator (ASPE) American Society of Professional Estimators

Licensed General Contractor (778968), State of California, Licensed General Contractor (072729), State of Nevada

Fire Loss Reconstruction Cost Estimating Expert

(800) 482-1822

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