CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - FRIDAY, JANUARY 9, 2026

Microscope

The dispute arose after one of six buildings in a complex owned by Maxus caught fire.

Microscopic Soot, Major Win: Policyholder Coverage Expands

January 6, 2026
Scott P. DeVries & Natalie Reed - Hunton Insurance Recovery Blog

In a recent opinion, the 8th Circuit rejected an insurer’s attempt to expand insurer victories in a COVID-19 context to other more traditional claims of property damage. Reaffirming long standing principles, the court held soot and water damage associated with a fire constituted “direct physical loss or damage” under a commercial property insurance policy.

The policyholder, Maxus Metropolitan, sued their insurer, Travelers, which had refused to reimburse Maxus for remediation costs associated with a fire at their building. The dispute arose after one of six buildings in a complex owned by Maxus caught fire. Travelers covered part of the damage for the building that caught fire. However, seven months after the fire, Maxus learned of soot and water damage throughout the other five buildings, some of which were under construction and some that had residents. The commercial property policy Travelers issued to Maxus covered up to $35 million in “direct physical loss…or damage.” Travelers refused to reimburse for the remediation and in response Maxus sued Travelers for breach of contract and vexatious refusal to pay in Missouri.

Reprinted courtesy of Scott P. DeVries, Hunton Andrews Kurth LLP and Natalie Reed, Hunton Andrews Kurth LLP

Mr. DeVries may be contacted at sdevries@hunton.com
Ms. Reed may be contacted at nreed@hunton.com

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CDJ NEWS THIS WEEK

Construction workers on site meeting plans

In this newsletter, Snell & Wilmer explores a variety of topics related to current construction trends and legal news that may be relevant and helpful to you and your business.

Under Construction – November 2025

January 6, 2026 — Snell & Wilmer

Letter From the Editor
Welcome to the fall edition of Snell & Wilmer’s Under Construction Newsletter. As brisk autumn air sets in, it’s an ideal moment to shore up the basics — both in your projects and in your grasp of the continually shifting field of construction law.

In this newsletter, we explore a variety of topics related to current construction trends and legal news that may be relevant and helpful to you and your business. We have assembled a selection of articles that include discussions of state-specific issues including how Idaho’s Contractor Registration Act bars unregistering contractors from enforcing contracts or filing liens, though the state Supreme Court allows remedies for post-registration work if severable. This edition discusses how contractors can maximize cash flow and profits by substituting security for retainage on public projects. We also highlight the California Court of Appeals discussion and latest decision relating to subcontractor substitution protections under Public Contract Code §4107. We round out our newsletter summarizing how the Colorado Supreme Court clarified that the economic loss rule bars tort claims for purely economic harm arising from contracts — even when alleging willful and wanton misconduct.

Reprinted courtesy of Snell & Wilmer

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Red dismiss stamp on document fountain pen signing

The court found that the insurer had a duty to defend and dismissed the insurer’s motion for summary judgment.

Insured Successfully Moves to Dismiss Insurer’s Suit to Eliminate Duty to Defend

January 6, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The court found that the insurer had a duty to defend and dismissed the insurer’s motion for summary judgment. Travelers Indem. Co. of Conn. v. I.C. Refrigeration Services Inc., 2025 U.S. Dist. LEXIS 221768 (N.D. Cal. Nov. 10, 2025).

Flory Construction, Inc. sued the project owner, Highbridge, asserting claims for (1) foreclosure on mechanics liens; (2) breach of contract; and other cliams. Flory agreed to furnish labor, materials and equipment for improvements to Highbridge’s properties. Flory alleges Highbridge failed to provide payment despite Flory completing “all requested contract work . . . except to the extent prevented by Highbridge.”

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

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

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Glowing colorful number one dark background

These rankings are determined through an analysis of millions of submitted evaluations on thousands of top lawyers from their clients and peers.

Lewis Brisbois Ranked Tier 1 Nationally for Seven Practice Areas in 2026 Best Law Firms

January 6, 2026 — Lewis Brisbois Newsroom

November 6, 2025) - Lewis Brisbois has been ranked Tier 1 nationally by Best Lawyers for 'Appellate Practice,' 'Commercial Litigation,' ‘Insurance Law,’ 'Litigation - Construction,' ‘Litigation - Labor and Employment,’ ‘Mass Tort Litigation / Class Actions – Defendants,’ and ‘Transportation Law,’ as well as ranking Tier 1 in an array of practice areas across 27 metro regions in its 2026 edition of Best Law Firms®.

In addition to Lewis Brisbois' national rankings, the firm was also ranked Tier 1 in the following regional categories:

Akron

  • Bet-the-Company Litigation
  • Commercial Litigation
  • Tax Law
  • Trusts and Estates

Reprinted courtesy of Lewis Brisbois

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AI hologram in front of laptop

Like other uses of GenAI, it is a tool that is not designed to replace lawyers.

Toolbox Talk Series: GenAI Document Review

January 6, 2026 — Brendan J. Witry - The Dispute Resolver

This month's installment of the Toolbox Talk Series explored the use of Generative AI in document review, which as construction lawyers know can be voluminous. Jack Bandlow and Travis Olson from BRG provided an overview of how lawyers can use GenAI to make document review in construction litigation more efficient.

Like other uses of GenAI, it is a tool that is not designed to replace lawyers. Rather it helps eliminate or reduce mundane or tedious tasks that are not the highest and best use of a lawyer's time. The AI-powered document review platforms are designed to recognize patterns in documents and transforms words and text into "vectors" to group concepts with similar meanings. For example, whereas a traditional keyword search for "weather delay" will only return hits on that keyword, a search utilizing vectoring will also search for conceptually similar terms, even if the keyword does not match. These tools can use natural language searches to return results that a responsive to the prompt.

Mr. Witry may be contacted at bwitry@lauriebrennan.com

Reprinted courtesy of Brendan J. Witry, Laurie & Brennan LLP

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Stars in night sky

This year, 189 Gordon Rees Scully Mansukhani attorneys have been selected, with 60 named to Super Lawyers and 129 named to Rising Stars.

GRSM Attorneys Selected to 2025 Super Lawyers and Rising Stars Lists

January 6, 2026 — Gordon Rees Scully Mansukhani

Super Lawyers® has released its 2025 attorney lists across various regions of the United States. This year, 189 Gordon Rees Scully Mansukhani attorneys have been selected, with 60 named to Super Lawyers and 129 named to Rising Stars.

*For attorneys licensed to practice in New Jersey: No aspect of this advertisement has been approved by the Supreme Court of New Jersey. Please visit the Super Lawyers Selection Process for a detailed description of the Super Lawyers and Rising Stars selection methodology.

GRSM Super Lawyers 2025
Northern California
Michael D. Bruno
David C. Capell
Lisa M. Cappelluti
Dion N. Cominos
Matthew S. Foy
Natalie Fujikawa
Marie Trimble Holvick
Michael A. Laurenson
Michael J. Pietrykowski
Andrew I. Port
Gina Stassi

Reprinted courtesy of Gordon Rees Scully Mansukhani

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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

Extensive testimony experience attendant to numerous commercial and residential construction defect and claims related expert witness designations

(800) 482-1822

www.berthowe.com

Fine coins document with businessman exclamation points

An investigation by the DC OAG accused a contractor of failing to pay prevailing wages to workers on three publicly-funded affordable housing projects in the District, and misclassifying employees as independent contractors on 13 additional projects.

Va. Contractor Fined for Alleged DC Wage and Classification Violations

January 6, 2026 — Jim Parsons - Engineering News-Record

A Virginia contractor will pay $725,000 to resolve allegations that it violated the District of Columbia’s wage and hour laws on more than a dozen public housing projects.

ENR may be contacted at enr@enr.com

Reprinted courtesy of Jim Parsons, Engineering News-Record

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Fact turning to Fake blocks

The Kahana Feld team established that the plaintiff’s identified eyewitness was out of the country at the time of the alleged accident—contradicting the plaintiff’s testimony and confirming the falsity of the claim.

Kahana Feld Secures Discontinuance with Prejudice in Fraudulent Case

January 6, 2026 — Kahana Feld

Kahana Feld secured a victory for its client after uncovering evidence that the plaintiff’s alleged trip-and-fall claim was fraudulent. The plaintiff sought $8 million in damages and claimed serious spinal and knee injuries stemming from an incident outside a Bronx retail store.

Through strategic investigation and a crucial non-party deposition, our team established that the plaintiff’s identified eyewitness was out of the country at the time of the alleged accident—contradicting the plaintiff’s testimony and confirming the falsity of the claim.

Reprinted courtesy of Kahana Feld

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Gold stars and sunlight

Super Lawyers, a Thomson Reuters business, is a rating service of lawyers from more than 70 practice areas, who have attained a high degree of peer recognition and professional achievement.

Traub Lieberman Attorneys Recognized as 2025 New York – Metro Super Lawyers® and Rising Stars

January 6, 2026 — Traub Lieberman

Traub Lieberman is pleased to announce that seven Partners from the New York office have been selected to the 2025 New York - Metro Super Lawyers list and one associate has been listed in the 2025 New York – Metro Rising Stars.

2025 New York – Metro Super Lawyers

  • Copernicus Gaza – Insurance Coverage
  • Jonathan Harwood – Professional Liability
  • Lisa Rolle – Construction Litigation
  • Hillary Raimondi – Employment Litigation
  • Christopher Russo – Professional Liability
  • Lisa Shrewsberry – Professional Liability
  • Stephen Straus – Insurance Coverage

2025 New York – Metro Rising Stars

  • James Wise – Insurance Coverage

Lisa Shrewsberry was also selected to the Top 25: 2025 Westchester County Super Lawyers® list.

Reprinted courtesy of Traub Lieberman

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Void

In MLB Transportation, the court found that the contractor obtained a government contract by knowingly making a false statement that it was a Service Disabled Veteran Owned Small Business.

Government Claiming Contract Is Void Ab Initio by Contractor Knowingly Making False Statements

January 6, 2026 — David Adelstein - Florida Construction Legal Updates

Can the federal government declare a contract “void ab initio” or void from the beginning? Yes, if the government can “prove that the contractor (a) obtained the contract by (b) knowingly (c) making a false statement.” MLB Transportation v. U.S., 2025 WL 2962897, *8 (Fed.Cl. 2025) (citation omitted).

Where a contractor “obtained [a] contract by knowingly falsely stating that it was a small business … [the] government contract [is] tainted from its inception by fraud [and] is void ab initio.” The general rule that “a Government contract tainted by fraud or wrong-doing is void ab initio … protects the integrity of the federal contracting process and safeguards the public from undetectable threats to the public fisc.” A contract found to be void ab initio has “no legal effect,” and is “[n]ull from the beginning, as from the first moment when a contract is entered into.”

MLB Transportation, supra (citations omitted).

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Change order

SB 440 introduces a process and deadlines for handling change order, time extension and payment disputes on private-works construction projects.

New California Law Mandates Prompt Resolution of Change Order Payment Disputes on Private Works of Improvement

January 5, 2026 — Samuel Bucher, Marc Coats & William S. Hale, P.E. - Gravel2Gavel Construction & Real Estate Law Blog

On October 10, 2025, Governor Newsom signed SB 440, titled the Private Works Change Order Fair Payment Act. The new law introduces a process and deadlines for handling change order, time extension and payment disputes on private-works construction projects. SB 440 will apply to contracts entered into on or after January 1, 2026, and will remain in effect until January 1, 2030.

What Is Changing?
Construction projects often undergo changes during the construction process that may result in additional costs for labor and materials. Currently, there are no specific processes mandated for resolving change orders on private works of improvement in California. On January 1, 2017, California implemented Public Contract Code section 9204 to provide a claims resolution process for contractors engaged in public works projects, and SB 440 seeks to implement a similar process for private, nonresidential construction projects.

Reprinted courtesy of Samuel Bucher, Pillsbury, Marc Coats, Pillsbury and William S. Hale, P.E., Pillsbury

Mr. Bucher may be contacted at samuel.bucher@pillsburylaw.com
Mr. Coats may be contacted at marc.coats@pillsburylaw.com
Mr. Hale may be contacted at william.hale@pillsburylaw.com

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Gold champagne stars ribbons

The 19 consecutive years of election to the Legal Elite in the Construction Category span Mr. Hill's over 15 years as a solo construction attorney.

Thank You for Year 19 of Legal Elite

January 5, 2026 — Christopher G. Hill - Construction Law Musings

Thank you once again to those in the Virginia legal community who elected me to the Virginia Business Legal Elite in the Construction Law category for the 19th consecutive year. The 19 consecutive years of election to the Legal Elite in the Construction Category span my over 15 years as a solo construction attorney. The fact that you all have continued to elect “100%” of the lawyers at The Law Office of Christopher G. Hill, PC for the last 15 years is most gratifying and only confirms that my decision to “go solo” over 15 years ago was a good one. To be included in this list of top construction attorneys is both humbling and gratifying. For the complete list of the Virginia construction lawyers who were elected along with me, see the 2025 Virginia Business Legal Elite in Construction Law.

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

Reprinted courtesy of The Law Office of Christopher G. Hill, PC

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Fill out form

This is the fourth article in a series of four articles discussing how to properly fill out the four California construction releases described in California Civil Code 8132 – 8138.

How to Properly Fill Out and Use the Unconditional Waiver and Release on Final Payment Form Used in California Construction

January 5, 2026 — William L. Porter - Porter Law Group

This is the fourth article in a series of four articles discussing how to properly fill out the four California construction releases described in California Civil Code 8132 – 8138.

Let me start by noting that in addition to practicing construction law for more than 35 years, I chaired the committee of California construction attorneys who revised those sections of the California Civil Code dealing with this release form and many other construction forms as part of Senate Bill 189 in 2010. I also wrote the first version of this release form and made it free to the public well before the new law took effect in 2012. With this background, let me note a few things about the Unconditional Waiver and Release on Progress Payment form to help you avoid mistakes that might prevent you from achieving the intended effect of the form or releasing claim rights to a greater extent than you intend.

Mr. Porter may be contacted at bporter@porterlaw.com

Reprinted courtesy of William L. Porter, Porter Law Group

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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

Multifamily construction development

4Q Cost Report: Data Centers, Multifamily Lead Modest Growth

January 5, 2026 — Alisa Zevin - Engineering News-Record

While 2025 may be coming to a close, economic uncertainty is expected to continue as concerns linger within the construction industry as well as on the health of the overall economy.

Ms. Zevin may be contacted at zevina@enr.com

Reprinted courtesy of Alisa Zevin, Engineering News-Record

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Construction worker wearing harness

Mission First, People Always: Military Veterans Drive Safety Culture in Engineering and Construction

January 5, 2026 — Kim Carevich - Construction Executive

In 1997, John Bolt lost two fellow fighter pilots and close friends during a training accident. Both were skilled, disciplined and well-prepared. Both made a mistake, and the system left no room for recovery.

“That was my first lesson in human performance,” Bolt says. “Even the best people can make a mistake, and that mistake shouldn’t cost them their life.”

That tragedy reshaped how he viewed leadership, risk and responsibility. Today, as senior vice president of health, safety, environment and security at S&B, a leading engineering and construction firm based in Houston, Texas, Bolt carries that lesson forward to design systems that expect error, protect people and create space to learn.

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

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Lawyer arguing at table gavel

Seth Friedman Argues Important Insurance Issue for State Farm at Georgia Court of Appeals

January 5, 2026 — Lewis Brisbois Newsroom

Atlanta, Ga. (November 12, 2025) - Atlanta/Nashville Partner Seth Friedman recently presented oral argument on behalf of State Farm before the Georgia Court of Appeals in a dispute over the enforceability of the insurer's settlement with a driver who was involved in a car crash with its insured - a case that implicates an important recurring issue of state insurance law.

The case stems from a March 2023 collision involving State Farm's insured and another driver named Weston Vincent. Pre-suit, State Farm tendered the $25,000 bodily injury limit of his auto policy to Vincent in exchange for a release. Vincent, however, rejected the tender and issued his own settlement demand for the policy limit that included not only the statutory material terms required by OCGA § 9-11-67.1, but many additional non-statutory conditions, including a requirement that State Farm agree that OCGA § 9-11-67.1 would not govern his offer.

Reprinted courtesy of Lewis Brisbois

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Seminar

6th Annual Construction Law in Montana Seminar

January 5, 2026 — Beverley BevenFlorez – CDJ Staff

This one-day seminar will cover “a wide range of topics including: recent developments in Montana and Federal case law, statutes and regulations, procurement policies and trends, construction contracting, insurance issues, and many others.” The event is relevant “for any Construction Law practitioner and for construction professionals who wish to better understand the nuances of many areas of law that affect the construction industry.”

March 12th, 2026
Best Western Premier Helena Great Northern Hotel
835 Great Northern Blvd.
Helena MT, 59601-3315

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