CONSTRUCTION DEFECT JOURNAL
"News and Information for Construction Defect and Claims Professionals"
CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, FEBRUARY 3, 2026
The Navy issued non-compliance notices to the GC after discovering defects in work performed by various subcontractors, including EKE.
Navigating Turbulent Waters Ashore: Insurance Lessons from a Navy Project Dispute
February 2, 2026
Cary D. Steklof & Torrye Zullo - Hunton Insurance Recovery Blog
As we ring in the New Year, one thing remains the same: understanding the definitions and conditions in your insurance policy is critical. In a recent decision, a Florida federal court in Ohio Security Insurance Co. v. E Kelly Enterprises Inc. et al., No. 3:22-cv-24754, held that an insurer had no duty to defend or indemnify a general contractor and no duty to indemnify a subcontractor for damages from defective work on a naval base, based on the policy’s definition of “suit,” “property damage,” and allocation requirements. The decision highlights the importance of numerous issues in the context of commercial general liability policies, including the nuances of policy definitions, obtaining insurer consent when necessary, and allocation between covered and uncovered claims.
Background
In October 2014, a general contractor (“GC”) was awarded a contract by the Navy to renovate buildings at the Naval Air Station in Pensacola. The GC subcontracted work to various subcontractors, including metal framing and drywall, to a subcontractor named EKE.
Reprinted courtesy of Cary D. Steklof, Hunton Andrews Kurth LLP and Torrye Zullo, Hunton Andrews Kurth LLP
Mr. Steklof may be contacted at csteklof@hunton.com
Ms. Zullo may be contacted at tzullo@hunton.com
CDJ NEWS THIS WEEK
The United States District Court for the District of Colorado addressed when expert testimony is not subject to be limited or excluded pursuant to Federal Rule of Evidence 702.
When Rule 702 Motions Fail: A Close Look at AECOM v. Flatiron
Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC
Prominent business and real estate law firm Newmeyer Dillion is pleased to announce that Walnut Creek attorney Jacqueline McCalla has been elected to partnership.
Newmeyer Dillion Announces Jacqueline McCalla as Its Newest Partner
Steinfeld sent a notice and demand letter, seeking $4.5 million for early settlement and asked for mediation within 90 days.
Court Conditionally Grants Mandamus Relief to Compel Appraisal
Mr. Eyerly may be contacted at te@hawaiilawyer.com
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
The new regulatory framework, effective June 17, 2026, introduces caps and transparency measures that may help stabilize settlement negotiations and curb artificially inflated demands.
Groundbreaking New York Law Regulates Third-Party Litigation Funding for the First Time
Mr. Hurzeler may be contacted at Nicholas.Hurzeler@lewisbrisbois.com
Reprinted courtesy of Nicholas P. Hurzeler, Lewis Brisbois
Ball Janik LLP is pleased to announce the elevation of Keegan A. Berry and Nicholas B. Vargo to Partner, effective 2026.
Ball Janik LLP Elevates Construction Litigation Attorneys Keegan A. Berry and Nicholas B. Vargo to Partner
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
In ANY dispute, prejudgment interest can be an important damages component that accrues from the date of the loss.
Don’t Ignore Prejudgment Interest
Mr. Adelstein may be contacted at dma@kirwinnorris.com
Reprinted courtesy of David Adelstein, Kirwin Norris
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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 2026 Illinois Super Lawyers® and Rising Stars
Reprinted courtesy of Traub Lieberman
Owner points to harms in Virginia construction shutdown due to Trump administration claimed need for more "national security" reviews, with a Jan. 16 court hearing now set to determine if work will restart.
UPDATED: Dominion Sues Feds Over Offshore Wind Project Halt, With Action Possible on Others Shut
Ms. Rubin may be contacted at rubind@enr.com
Reprinted courtesy of Debra K. Rubin, Engineering News-Record
Depending on the state in which your project is being built, you, as a general contractor, may be responsible for hazards at your worksite that you did not create.
Virginia Multi-Employer Site Safety Issues–and How to Deal with Them
Mr. Hill may be contacted at chrisghill@constructionlawva.com
Reprinted courtesy of The Office of Christopher G. Hill
Time to review your contracts.
It’s That Time of Year: Contract Review Time
Mr. Murai may be contacted at gmurai@nomosllp.com
Reprinted courtesy of Garret Murai, Nomos LLP
ABC supported two permitting reform bills, which just passed a vote in the U.S. House.
House Passes ABC-Supported Permitting Reform Legislation
Many developers are considering opportunities on state-owned and privately held lands rather than federal lands.
Navigating Wind and Solar Development Opportunities on State and Private Lands During Uncertain Times for Renewable Energy
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
The Trends Dominating the Luxury Real Estate Market in 2026
Reprinted courtesy of Sarah Rappaport, Bloomberg
US Construction Activity Further Concentrates in Handful of States
Mr. Gottlieb may be contacted at gottliebb@enr.com
Reprinted courtesy of Bryan Gottlieb, ENR
Waiver and Estoppel Does Not Create Insurance Coverage that Doesn’t Exist
Mr. Adelstein may be contacted at dma@kirwinnorris.com
Reprinted courtesy of David Adelstein, Kirwin Norris
Artificial Intelligence in Law Practice Seminar
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Bert L.. Howe & Associates, Inc., provides construction-related expert witness investigation and trial support services to the nation's most recognized publicly traded builders, commercial general liability carriers, law firms, and construction practice groups. To schedule a no-cost consultation with a construction or design expert possessing the credentials, licensures, and qualifications best suited to your matter, please contact us at 800.482.1822
Gateway Tunnel Construction Expected to Shut Down Next Week Without Federal Funding
CDJ Video ChannelBillionaire Brothers Buy Up 16 Beachfront Lots in Malibu, Plan to Build Homes
CDJ Video ChannelConsulting General Contractor - Certified Construction Cost Estimating Expert Witness
Certified Professional Estimator (ASPE) American Society of Professional Estimators
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(800) 482-1822
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