CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, APRIL 28, 2026

Lady law scale and legal books

This article examines the recent decision in Berk v. Choy, 146 S. Ct. 546 (2026), the decisions thus far which have applied Berk to invalidate COM statutes, and other categories of statutes applicable to the construction industry which may face a similar fate.

U.S. Supreme Court Decision May Negate State Law Requirement to File a Certificate of Merit with the Complaint in a Federal Action Against a Design Professional

April 27, 2026
Christopher Olsen & Phillip Boldt - ConsensusDocs

To deter frivolous and unfounded claims against design professionals, states throughout the country have enacted statutes which generally require litigants to furnish a formal certification of merit (“COM”) from a qualified expert or face potential dismissal of their lawsuit. These COM statutes can impose a significant front-end burden on claimants who must pay an expert to review project records, interview the project team, and prepare a formal report before the lawsuit can be filed—often regardless of the amount in controversy. However, in light of a recent U.S. Supreme Court decision in a medical malpractice case, most, if not all of these statutes, may no longer be enforceable in federal court. This article examines the recent decision in Berk v. Choy, 146 S. Ct. 546 (2026), the decisions thus far which have applied Berk to invalidate COM statutes, and other categories of statutes applicable to the construction industry which may face a similar fate.

The U.S. Supreme Court Decision (Berk v. Choy)
In Berk, the plaintiff, Harold Berk, sued a doctor for medical malpractice under Delaware law in Delaware federal court. 146 S. Ct. at 551. Under Del. Code, Tit. 18, § 6853(a)(1), an affidavit of merit (like a COM) must accompany a complaint alleging medical malpractice. Id. Berk failed to include an affidavit of merit with his complaint. Id. at 552. Applying Delaware state law, the federal court dismissed Berk’s medical malpractice claim. Berk appealed to the Third Circuit, arguing that the affidavit of merit required by § 6853(a)(1) is unenforceable in federal court because it is more onerous than the Federal Rules of Civil Procedure. The Third Circuit affirmed the District Court’s ruling, finding § 6853(a)(1) enforceable in federal court.

Reprinted courtesy of Christopher Olsen, Peckar & Abramson, P.C. and Phillip Boldt, Peckar & Abramson, P.C.

Mr. Olsen may be contacted at colsen@pecklaw.com
Mr. Boldt may be contacted at pboldt@pecklaw.com

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CDJ NEWS THIS WEEK

Brick wall collapse

One of the brick veneer walls of the Lido Motel collapsed during a windstorm.

Anti-Concurrent Causation Clause Prevents Coverage for Collapse

April 27, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The appellate court affirmed the decision of the trial court granting summary judgment to the insurer after agreeing that the policy’s anti-concurrent causation clause barred coverage. Lido Hospitality, Inc. v. AIX Specialty Ins. Co., 2026 Iii. App. Unpub. LEXIS 133 (Ill. Ct. App. Jan. 27, 2026).

One of the brick veneer walls of the Lido Motel collapsed during a windstorm. Lido reported the loss it its insurer, AIX. AIX investigated and determined that the brick veneer collapsed due to pervasive wear and tear and corrosion of the underlying infrastructure that secured the veneer- specifically the components that anchored or tied the masonry veneer to the underlying wooden substrate.

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

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

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Bankruptcy

The contractors are listed in the hospital's bankruptcy petition as the second largest unsecured creditor. Cannon Design, the project architect, is another unsecured creditor, at $324,000.

Modern Building-Sundt $17M Claim Is Stranded by Hospital Bankruptcy

April 27, 2026 — Richard Korman - Engineering News-Record

A $16.9-million claim for work on a hospital addition by a joint venture of contractors Modern Building Co. and Sundt Construction is stuck and delayed indefinitely following the California hospital's December bankruptcy filing.

Mr. Korman may be contacted at kormanr@enr.com

Reprinted courtesy of Richard Korman, Engineering News-Record

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Coin stacks on top of Bond blocks

Under Florida’s Lien Law, there’s an affirmative defense or affirmative claim known as a “fraudulent lien.”

Alert: Fraudulent Notice of Nonpayment Defense Applies to Payment Bond Claims

April 27, 2026 — David Adelstein - Florida Construction Legal Updates

Under Florida’s Lien Law, there’s an affirmative defense or affirmative claim known as a “fraudulent lien.” The fraudulent lien defense or claim is set out in Florida Statute s. 713.31. This defense also extends to payment bond claims, whether under a private statutory payment bond (Florida Statute s. 713.23) or a public payment bond (Florida Statute s. 255.05), as it pertains to the notice of nonpayment. A notice of nonpayment needs to be served within 90 days from final furnishing to preserve a claimant’s rights against the bond. However, there really has not been a case, until now, that discusses a “fraudulent notice of nonpayment.”

In K&M Electric Supply, Inc. v. Brown Electrical Solutions, LLC, 51 Fla.L.Weekly D672a (Fla. 4th DCA 2026), a prime contractor and surety prevailed at the trial level on their fraudulent notice of nonpayment defense based on a supplier’s notice of nonpayment and action against a public payment bond (under Florida Statute s. 255.05).

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Plans pencil measuring tape ruler

These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements.

Breaking Ground On New California Public Works Prevailing Wage Requirements

April 27, 2026 — Heather Frisch, Christopher Bouquet & Ashley Stein - The Construction Seyt

Seyfarth Synopsis: As of January 1, 2026, AB 889 bulldozed California’s Prevailing Wage law, which impacts public works employers—including public agencies, the contractors that work for them, and private owners and developers whose projects may be subject to public works requirements. The amended law reframes the calculation of fringe benefits for individuals who work on public works project and mandates annualization of such benefits, demolishes the practice of frontloading these benefits, and requires employers to maintain inspection-ready records of compliance.

This year, AB 889 significantly revised California’s prevailing wage law, codified at Labor Code section 1773.1, to clarify the state’s prevailing wage regulations and streamline enforcement. Accordingly, as of January 1, 2026, California public works employers are required to annualize employees’ fringe benefits and maintain specific documentation demonstrating statutory compliance. These new obligations impact public agencies and their contractors, as well as private owners and developers whose projects may be subject to public works requirements. Continue reading for the blueprint of how to comply with the state’s amended prevailing wage law.

Reprinted courtesy of Heather Frisch, Seyfarth Shaw LLP, Christopher Bouquet, Seyfarth Shaw LLP and Ashley Stein, Seyfarth Shaw LLP

Ms. Frisch may be contacted at hfrisch@seyfarth.com
Mr. Bouquet may be contacted at cbouquet@seyfarth.com
Ms. Stein may be contacted at astein@seyfarth.com

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Top 100

Sacramento Partner Shane Singh has been named one of the Los Angeles Business Journal's "Top 100 Lawyers of Los Angeles" for 2026.

Shane Singh Named One of Los Angeles Business Journal's 'Top 100 Lawyers of Los Angeles' for 2026

April 27, 2026 — Lewis Brisbois

Sacramento Partner Shane Singh has been named one of the Los Angeles Business Journal's "Top 100 Lawyers of Los Angeles" for 2026.

The LABJ’s annual list honors Los Angeles' top lawyers for their achievements within the city's business community.

Reprinted courtesy of Lewis Brisbois

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Data centers

The question is no longer whether FERC will regulate data‑center power structures—it already is.

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 Blog

The 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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Time for Recognition

The office has been ranked among the top 10 largest law firms in the region by the Orange County Business Journal for nine consecutive years.

Snell & Wilmer Recognized Among the Top 10 Largest Law Firms in Orange County by the Orange County Business Journal for the Ninth Consecutive Year

April 27, 2026 — Snell & Wilmer

ORANGE COUNTY – Snell & Wilmer is pleased to announce that its Orange County office has been named the eighth largest law firm in Orange County on the Orange County Business Journal’s 2026 List of Law Firms. The office has been ranked among the top 10 largest law firms in the region by the Orange County Business Journal for nine consecutive years.

“We are proud to once again be recognized among the top law firms in Orange County,” said Jonathan E. Frank, managing partner of the firm’s Orange County office. “This recognition is a testament to the outstanding attorneys and professionals in our Orange County office and the clients who trust us with their most important matters. Being ranked among the top 10 largest firms in the region for nine consecutive years reflects both the strength of our team and our deep commitment to serving the Orange County business community.”

Reprinted courtesy of Snell & Wilmer

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Executive Order

Companies that conduct business with federal agencies should expect an amendment to their federal contracts, or contract-like instruments, that will include this clause.

New Executive Order Prohibits Federal Contractors from Engaging in DEI Through Employment and Procurement Activities

April 27, 2026 — Laura De Santos & Monica Prieto - Gordon Rees Scully Mansukhani

On March 26, 2026, President Trump signed Executive Order 14398, entitled Addressing DEI Discrimination by Federal Contractors, requiring federal agencies to add contractual language in all federal contracts prohibiting contractors and subcontractors from engaging in any racially discriminatory DEI activities, as defined by the Executive Order (EO).

While this EO includes language similar to prior DEI-related orders, it introduces a significant expansion in enforcement by subjecting non-compliant contractors to liability under the False Claims Act (FCA), including exposure to whistleblower actions and qui tam litigation. A qui tam claim is a civil action by a private individual on behalf of the government alleging fraud against federal programs and seeking to recover damages.

The new EO states that involvement in any racially discriminatory DEI activities is not only unethical and illegal, but also deemed fraudulent against federal programs because it is material to the government’s payment decisions. The definition of DEI activities here matters, as this EO expands a contractor’s obligations beyond the management of its employment policies and includes prohibitions against funding or expending time or resources on DEI activities and contracting with subcontractors, vendors, or suppliers utilizing DEI programs.

Ms. De Santos may be contacted at ldesantos@grsm.com

Reprinted courtesy of Laura De Santos, Gordon Rees Scully Mansukhani

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House next to tablet displaying spreadsheet

Excel continues to dominate the business landscape in AEC. Why should it be replaced and what could replace it?

Can Anything Supersede Excel in AEC?

April 27, 2026 — Aarni Heiskanen - AEC Business

If there’s one piece of software that dominates the business world across industries, it’s Microsoft Excel. Can AI finally dethrone the mighty spreadsheet?

Memorable Spreadsheet Moments
Everyone has memorable spreadsheet moments. I have a few. For example, my then-architecture firm was involved in more than a dozen housing developments abroad. I developed an Excel workbook that took the required number of households as input and automatically generated a breakdown of buildings and their apartment types for AutoCAD. This was urban planning and architectural design done with a spreadsheet.

I also developed business software using Excel for project portfolio management. The prototype was later scaled into a commercial SaaS that is now used globally.

Another memorable moment was when a property owner told me their Excel file grew so large that it ran out of rows and columns. That must have been before 2007, when the maximum number of columns on a sheet was still just 256 and the maximum number of rows was 65,536. The current limits are 1,048,576 rows and 16,384 columns, which I hope no one will exceed.

Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Reprinted courtesy of Aarni Heiskanen, AEC Business

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Rate decreasing

According to new BLS data, U.S. construction fatalities declined slightly in 2024.

Fatalities Edge Down: New Data Reveals a Promising Decline

April 27, 2026 — Construction Executive

Construction fatalities in the United States declined slightly in 2024, according to new data released from the U.S. Bureau of Labor Statistics. The sector recorded just over 1,000 worker deaths last year—a modest decrease from the previous year but still among the highest totals of any industry.

Falls remained the leading cause of death, accounting for roughly one-third of all construction fatalities. Transportation incidents—including workers struck by vehicles or equipment—ranked second, followed by contact with objects or equipment and electrocutions.

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

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Refund

Approximately 330,000 importers paid or deposited an estimated $166 billion in IEEPA duties across more than 53 million entries.

IEEPA Tariff Refunds: CBP Launches CAPE Process

April 27, 2026 — David J. Creagan, Guido Antolini, Bruce W. MacLennan & Gary P. Biehn - White and Williams LLP

On April 20, 2026, U.S. Customs and Border Protection (CBP) launched the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment (ACE) portal to administer refunds of duties imposed under the International Emergency Economic Powers Act (IEEPA) through a streamlined electronic filing process.

Background
In February 2026, the U.S. Supreme Court held that certain tariffs imposed under IEEPA were unlawful. Subsequent proceedings before the U.S. Court of International Trade required CBP to develop a scalable refund process applicable not only to litigants but also to non-plaintiffs. According to CBP and court filings, approximately 330,000 importers paid or deposited an estimated $166 billion in IEEPA duties across more than 53 million entries. In response, CBP developed CAPE as an electronic, consolidated refund mechanism within ACE.

Reprinted courtesy of David J. Creagan, White and Williams LLP, Guido Antolini, White and Williams LLP, Bruce W. MacLennan, White and Williams LLP and Gary P. Biehn, White and Williams LLP

Mr. Creagan may be contacted at creagand@whiteandwilliams.com
Mr. Antolini may be contacted at antolinig@whiteandwilliams.com
Mr. MacLennan may be contacted at maclennanb@whiteandwilliams.com
Mr. Biehn may be contacted at biehng@whiteandwilliams.com

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Expanding network

Turner‑DPR‑Mortenson team builds out Richland Parish campus as Entergy proposes 7.5‑GW generation and transmission expansion statewide.

$27B Meta Data Center Pushes Louisiana Toward Massive Power Expansion

April 27, 2026 — Vince Kong - Engineering News-Record

Meta Platforms has reached an agreement with Entergy Louisiana to fund new energy infrastructure to support its planned $27-billion data center in Richland Parish, a project the company says could ultimately scale to 5 GW, becoming its largest facility to date. CEO Mark Zuckerberg has described the site as large enough to cover a significant portion of Manhattan.

Mr. Kong may be contacted at kongv@enr.com

Reprinted courtesy of Vince Kong, Engineering News-Record

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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

Salt Lake City

LGI Homes Expands in the Salt Lake City Market with Grand Opening of Desert Edge

April 27, 2026 — LGI Homes, Inc.

GRANTSVILLE, Utah, April 17, 2026 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) proudly announces the grand opening of Desert Edge, further expanding the company’s presence into Tooele County and the greater Salt Lake City market. Featuring a premier selection of upgraded, move-in-ready homes starting from the low-$400s, Desert Edge offers a variety of one- and two-story floor plans alongside desirable community amenities.

“We are proud to bring thoughtfully designed, high-quality homes to Grantsville that make homeownership more attainable for first-time buyers,” said Nick Smith, Vice President of Sales for Salt Lake City. “As the area continues to grow, we remain committed to delivering lasting value and creating a place that families are proud to call home. This community reflects both the opportunity and bright future of Grantsville.”

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Construction worker carrying beam

Nonresidential Construction Adds Solid 27,900 Jobs in January

April 27, 2026 — ABC - Construction Executive

WASHINGTON, Feb. 11—The construction industry added 33,000 jobs on net in January, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has grown by 44,000 jobs, an increase of 0.5%.

Nonresidential construction employment expanded by 27,900 positions, with gains in 2 of the 3 subcategories. Nonresidential specialty trade added 25,100 jobs, while nonresidential building added 3,600 new positions. Heavy and civil engineering lost 800 jobs in January.

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

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Home coins

Mortgagor Has No Claim Against Insurer Under Forced-Placed Policy

April 27, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The court granted the insurer’s and the mortgagee’s motions to dismiss the homeowner’s claims for breach of contract, bad faith and breach of fiduciary duty. Morris v. Standard Guar. Ins. Co., et al., 2026 U.S. Dist. LEXIS 12354 (N.D. Okla. Jan. 23, 2026).

PHH Mortgage Corporation was Plaintiff Sidney Morris’ mortgagee. The mortgage required plaintiff to obtain insurance on the property or the lender could do so on his behalf. PHH purchased a homeowner’s policy from Standard Guaranty on plaintiff’s behalf. Plaintiff asserted he was a third-party beneficiary to the policy and paid monthly premiums.

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

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

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Palm Springs California

Join Keith Bremer at the CAOIE/CAOC/OCTLA Palm Springs Seminar!

April 27, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

Join Keith Bremer as he takes the stage on May 2, 2026, during the CAOIE/CAOC/OCTLA Palm Springs Seminar alongside fellow trial leaders to discuss what makes closing arguments most impactful.

Topic: How the Best Close: Portions of Real Closings and What is Impactful
Time: 2:15 PM – 4:00 PM
Room: F-H

April 30th-May 2nd, 2026
Omni Rancho Las Palmas Resort & Spa
41000 Bob Hope Dr.
Rancho Mirage, CA 92270

Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Brush Fire Sparks in Oceanside | NBC 7 San Diego

The fire sparked just before 4:30 p.m. near Oceanside Boulevard and Rancho del Oro Drive, near the SoCal Sports Complex.

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Officials Provide Update on Status of LAX Automated People Mover Project

Officials spoke with KTLA and provided a formal update on the status of the LAX Automated People Mover project on Wednesday, KTLA 5's Annie Rose Ramos reports.

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