CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, JUNE 16, 2026

Risk assessment clipboard

As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them.

Modular Construction’s Hidden Risk: Where Things Go Wrong Between the Factory and the Field

June 15, 2026
Jack Mayo - ConsensusDocs

Introduction
As modular and prefabricated construction methods are increasingly adopted, so too are the potential challenges that come with them. The appeal is straightforward: faster timelines, controlled fabrication environments, and reduced on-site labor demands. But the risks that accompany these benefits are often less clear—and, in many cases, poorly defined.

For example, what happens when a prefabricated component is delayed past its installation window? Who is responsible for a defect discovered inside a sealed, installed module? What happens to warranty obligations when a prefabricated component must be modified on site?

Mr. Mayo may be contacted at jmayo@joneswalker.com

Reprinted courtesy of Jack Mayo, Jones Walker LLP

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CDJ NEWS THIS WEEK



Interior court trial

The Florida Court of Appeals affirmed a judgment on a collapse claim for the insured, rejecting the insurer’s arguments that were not presented to the trial court.

Insurer Cannot Raise Issues on Appeal that Were Not Presented to the Trial Court

June 15, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The Florida Court of Appeals affirmed a judgment on a collapse claim for the insured, rejecting the insurer’s arguments that were not presented to the trial court. Homeowner’s Choice Prop. & Cas. Ins, Co. v. Oakes, 2026 Fl. App. LEXIS 2086 (Fl. Ct. App. March 18, 2026).

The insured’s ceiling collapsed in the secondary home on the insured’s property. The claim was reported to the insurer, but coverage was denied after its investigation.

The insured sued the insurer for breach of contract. Under the Additional Coverage provisions of the policy, collapse was covered if it was “abrupt.” An abrupt collapse was not covered, however, if exclusions for “Fungi, Wet or Dry Rot” and “faulty, inadequate or defective design, specifications, workmanship, repair, construction, renovation, remodeling, materials or maintenance” applied. The collapse provisions contained no language stating that the coverage granted in the provision was also subject to all the other exclusions in the policy.

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

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

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Gavel next to law books

Federal judges affirm roughly $79-million judgment against Lane Construction tied to $2.3B Orlando P3 interstate megaproject.

Appeals Court Upholds Skanska, Granite Win in ‘I-4 Ultimate’ JV Dispute

June 15, 2026 — Bryan Gottlieb - Engineering News-Record

A federal appeals court has upheld a lower court’s decision requiring The Lane Construction Corp. to pay roughly $79 million in damages, plus interest, to joint venture partners Skanska USA Civil Southeast and Granite Construction for work on Florida’s I-4 Ultimate highway megaproject in Orlando, which was completed in 2022.

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

Reprinted courtesy of Bryan Gottlieb, Engineering News-Record

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Louisiana state capitol park

The opinion issued on April 17, 2026 is the latest development in long-running Louisiana coastal litigation that began more than a decade ago.

U.S. Supreme Court Decision Alters Course of $745M Louisiana Coastal Damage Judgment

June 15, 2026 — Jennifer Kretschmann & Jennifer E. Michel - Lewis Brisbois

The U.S. Supreme Court has issued a unanimous decision allowing oil and gas companies to move Louisiana coastal erosion lawsuits from state court to federal court under the federal officer removal statute. While the ruling is procedural, it carries significant implications for environmental- and energy-related risks. The case, Chevron U.S.A. Inc. v. Plaquemines Parish, Louisiana, Slip Op. 24-813 (April 17, 2026), addressed a threshold jurisdictional question but has broader significance for environmental and climate related litigation. State courts are often viewed as more favorable forums for plaintiffs asserting environmental damage claims, particularly those brought by governmental entities.

The opinion issued on April 17, 2026 is the latest development in long-running Louisiana coastal litigation that began more than a decade ago. Starting in 2013, Louisiana parishes filed 42 lawsuits against oil and gas companies alleging environmental damage related to historic oil field operations. The parishes alleged that oil and gas companies violated state coastal management laws by failing to properly restore impacted areas. Chevron sought to remove the cases from state court under 28 U.S.C. § 1442(a)(1), known as federal officer removal, which provides federal jurisdiction over “any person acting under [an] officer” of the United States "for or relating to any act under color of such office." The Fifth Circuit rejected the argument and remanded the case, and others like it, to state court. Trial began in March 2025 in Point à la Hache, Louisiana. On April 4, 2025, the jury awarded a total of $745 million to compensate for land loss, contamination and abandoned equipment. On June 16, 2025, the U.S. Supreme Court agreed to review the question of whether a federal contractor can remove to federal court when sued for oil-production activities undertaken to fulfill a federal oil-refinement contract.

Reprinted courtesy of Jennifer Kretschmann, Lewis Brisbois and Jennifer E. Michel, Lewis Brisbois

Ms. Kretschmann may be contacted at Jennifer.Kretschmann@lewisbrisbois.com
Ms. Michel may be contacted at Jenny.Michel@lewisbrisbois.com

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New York court exterior

Kahana Feld partner Leigh Katz obtained a significant victory in a recent matter involving a videotaped alleged trip and fall on the sidewalk in front of the client’s commercial residence.

Kahana Feld Obtains Favorable Result in High-Exposure NY Premises Liability Case

June 15, 2026 — Leigh Katz - Kahana Feld

Kahana Feld partner Leigh Katz obtained a significant victory in a recent matter involving a videotaped alleged trip and fall on the sidewalk in front of the client’s commercial residence. The plaintiff claimed he suffered a knee injury that necessitated surgery, along with other assorted injuries that prevented him from continuing high-level athletic activities. Leigh was able to demonstrate that the fall was staged and received a voluntary discontinuance with prejudice.

At mediation, Leigh emphasized that KF’s expert witness challenged the plaintiff’s claim that the fall was caused by a sidewalk height differential after reviewing the videotape footage and determining the plaintiff’s fall began before his feet made contact with the alleged defect. Based on this analysis, the expert concluded the reported height differential did not initiate the fall, which supported KF’s position that the incident depicted in the video was unrealistic and appeared staged.

Ms. Katz may be contacted at lkatz@kahanafeld.com

Reprinted courtesy of Leigh Katz, Kahana Feld

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Gold trophy award

The ranking further reinforces the firm's commitment to supporting California's construction market, from owners to developers and contractors, in high-stakes disputes statewide.

Segal McCambridge Recognized in 2026 Chambers USA Rankings

June 15, 2026 — Segal McCambridge

Los Angeles, CA, June 8, 2026 - Segal McCambridge is pleased to announce that the firm has been recognized as a leader by Chambers USA in California. The firm is listed in the Chambers-ranked department, receiving a Band 5 ranking for construction in California. The ranking further reinforces the firm's commitment to supporting California's construction market, from owners to developers and contractors, in high-stakes disputes statewide.

"Chambers' research-driven process and independence make this acknowledgment especially meaningful. We're proud of this ranking and grateful to our clients and colleagues whose consistent trust and collaboration make our work possible," said Jason P. Eckerly, Managing Shareholder of Segal McCambridge.

Chambers and Partners is widely regarded as one of the legal industry's most respected and independent ranking organizations. Operating across 200 jurisdictions and relied on in more than 70 countries, Chambers has, since 1990, conducted rigorous research to identify leading lawyers and law firms through a methodology that combines analysis of firm capability, achievement, and market presence through interviews and assessment of recent matters across more than 1,400 U.S. ranking tables, covering all 50 states, Washington, DC, and nationwide.

About Segal McCambridge
Segal McCambridge has built a reputation as a national law firm of accomplished trial attorneys for almost four decades. Founded in 1986, the firm has grown from a four-lawyer shop in Chicago to a firm with more than 20 offices nationwide. The firm routinely counsels and defends clients, including Fortune 500 companies, corporations, and individuals, across the United States in complex litigation matters, including, but not limited to: asbestos, class action, construction, employment, environmental, food and beverage, insurance coverage and bad faith, life sciences, product liability, professional liability, technology and cyber risk, transportation, and warranty. For more information, visit: www.segalmccambridge.com.

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Man worried next to piggy bank calculator

A recent case out of the federal arena where the contractor claimed Prompt Payment Act recourse due to untimely progress payments from the government explains that the teeth of the Act are fully negated by a “bona fide” dispute.

Bona Fide Dispute Defeats Violation of Prompt Payment Act

June 15, 2026 — David Adelstein - Florida Construction Legal Updates

Most, if not all, jurisdictions, including the federal government, have what is known as a “Prompt Payment Act.” The objective is to ensure prompt payment. If prompt payment is not made, the Prompt Payment Act provides for interest penalties, as well as potentially other costs such as attorney’s fees.

But the thing is, it’s not as simple as untimely payment to support the recourse and interest penalties the applicable Prompt Payment Act affords. And the teeth associated with the applicable Prompt Payment Act are not as sharp as perhaps the party claiming untimely payment prefers.

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Five stars

White and Williams LLP is proud to celebrate the Chambers USA 2026 Guide which has ranked several of the Firm's attorneys and practice groups, underscoring the Firm's overall commitment to providing client service excellence.

White and Williams LLP Ranked in the Chambers USA 2026 Guide

June 15, 2026 — White and Williams LLP

White and Williams LLP is proud to celebrate the Chambers USA 2026 Guide which has ranked several of the Firm's attorneys and practice groups, underscoring the Firm's overall commitment to providing client service excellence.

The Chambers USA 2026 Guide recognized attorneys Tim Davis, Managing Partner, and Nancy Frantz, Chair of the Real Estate Group, for Real Estate: Finance in the state of Pennsylvania. Randy Maniloff, Partner, Patricia Santelle, Chair Emeritus/Former Managing Partner, and Robert Walsh, Partner were ranked for Insurance in Pennsylvania, and Thomas Pinney, Partner, was ranked in Pennsylvania for Bankruptcy/Restructuring. In the state of Maryland, Partners David Gilliss and Eric Korphage were recognized for their work in Construction.

Reprinted courtesy of White and Williams LLP

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Super business people

Snell & Wilmer is pleased to announce that 50 attorneys in the Phoenix and Tucson offices have been selected for inclusion in the 2026 Southwest Super Lawyers publication.

Southwest Super Lawyers Recognizes 50 Snell & Wilmer Attorneys in 2026 Rankings

June 15, 2026 — Snell & Wilmer

PHOENIX (April 22, 2026) – Snell & Wilmer is pleased to announce that 50 attorneys in the Phoenix and Tucson offices have been selected for inclusion in the 2026 Southwest Super Lawyers publication. Of those 50, four were recognized for the first time and 24 were recognized as Southwest Rising Stars. Super Lawyers is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The selection process is multi-phased and includes independent research, peer nominations, and peer evaluations. Super Lawyers was first published in 1991 by Law & Politics and was acquired by Thomson Reuters, Legal in February 2010. Thomson Reuters is a leading source of information for businesses and professionals. The below Snell & Wilmer attorneys have been selected for inclusion in the 2026 Southwest Super Lawyers rankings.

Reprinted courtesy of Snell & Wilmer

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AI technology construction

Although the Order does not directly target the construction industry, several provisions are relevant to construction, engineering, and infrastructure firms.

New Executive Order on AI Innovation and Security: Key Takeaways for the Construction Industry

June 15, 2026 — Richard R. Volack & Denis Serkin - Peckar & Abramson, PC

On June 2, 2026, President Trump signed an Executive Order titled “Promoting Advanced Artificial Intelligence Innovation and Security.” At its core, the Order is a cybersecurity and national-security measure rather than a broad regulation of how private companies develop or use AI. It directs federal agencies to harden government systems against AI-enabled cyber threats, establishes voluntary frameworks for collaboration between the federal government and the AI and critical-infrastructure sectors, and strengthens criminal enforcement against the malicious use of AI.

Notably, the Order expressly disclaims any intent to create a “mandatory governmental licensing, preclearance, or permitting” regime for the “development, publication, release, or distribution of new AI models.” Instead, the Executive Order seeks to “promote AI innovation and security” by working with the private sector to modernize government and private-sector information systems and harden them against external threats, protect intellectual property from exploitation or theft, and cultivate American AI capabilities.

Reprinted courtesy of Richard R. Volack, Peckar & Abramson, PC and Denis Serkin, Peckar & Abramson, PC

Mr. Volack may be contacted at rvolack@pecklaw.com
Mr. Serkin may be contacted at dserkin@pecklaw.com

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Rules Policies Standards Compliance Regulations

This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals?

USDOT’s DBE Interim Final Rule: How It Affects Current and Out-to-Bid DOT and Airport Projects

June 15, 2026 — Zachary F. Jacobson - The Construction Seyt

In our April 16, 2026 post, we discussed the U.S. Department of Transportation’s Interim Final Rule (IFR) concerning Disadvantaged Business Enterprise (DBE) and Airport Concession Disadvantaged Business Enterprise (ACDBE) certification, specifically as it concerns transportation and airport projects in California.

This post addresses a broader question: What does the IFR mean for current and out-to-bid DOT projects operating under pre-existing DBE goals? The answer is that the IFR did more than change who qualifies as a DBE. It also changed how federally funded transportation and airport projects must be handled during the re-evaluation period. This affects active contracts, pending procurements, airport projects, design-build teams, and anyone relying on old assumptions about DBE goals and counting of DBE and ACDBE credit.

Mr. Jacobson may be contacted at zjacobson@seyfarth.com

Reprinted courtesy of Zachary F. Jacobson, Seyfarth Shaw LLP

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View of Earth from space

The Global Insights Center is happy to provide you the latest content and insights from the last month.

Global Insights Center: Monthly Newsletter

June 15, 2026 — Global Insights Center Staff - The Hartford

May in Review
Last month, inflation moved higher, with Consumer Price Index (CPI) inflation rising to 3.8% year over year, up from 3.3% the prior month. The increase was driven primarily by energy prices, particularly gasoline, reflecting ongoing disruptions tied to the Middle East conflict.

Labor market data were broadly stable. The unemployment rate remained unchanged at 4.3%, wage growth increased modestly to 3.6%, while job growth continued to be geographically concentrated in the Southern states, particularly cities in Texas. On an occupational basis, healthcare once again led job gains, especially in home health services, a trend we have consistently highlighted. Business formations increased during the month, with notable strength in e commerce and digital services firms. Manufacturing activity also improved, particularly in semiconductors, IT equipment, and natural gas–related energy infrastructure.

Reprinted courtesy of Global Insights Center Staff, The Hartford

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Worker with safety harness

ABC just released its 2026 Health and Safety Performance Report.

Construction Companies Are Nearly Seven Times Safer With These Best Practices

June 15, 2026 — ABC - Construction Executive

WASHINGTON, May 4—Associated Builders and Contractors released its 2026 Health and Safety Performance Report, an annual guide to health and safety best practices on construction jobsites. The 2026 report shows the positive effects of participating in ABC’s STEP® Health and Safety Management System, which enables top-performing ABC members to achieve incident rates 686% safer than the U.S. Bureau of Labor Statistics construction industry average, reducing total recordable incident rates by 85%.

Established in 1989, STEP is a proven system that provides contractors and suppliers with a robust, no-cost framework for measuring health and safety data and benchmarking with peers in the industry. This self-assessment tool helps participants identify real opportunities for scalable growth in their health and safety programs to lower their total recordable incident rates and become an employer of choice in a competitive labor market.

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

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Orlando, Florida aerial view

Toll Brothers Announces Model Home Grand Opening at The Isles at Lakewood Ranch in Florida

June 15, 2026 — Toll Brothers, Inc.

LAKEWOOD RANCH, Fla., April 20, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced the grand opening of a new model home at its luxury home community, The Isles at Lakewood Ranch, in one of Florida’s most sought-after locations near downtown Sarasota. The weekend event will take place on Saturday and Sunday, April 25 and 26, 2026, from noon to 3 p.m. at the community, located at 17523 Fairwinds Drive in Lakewood Ranch. Home shoppers are invited to tour the new Biance Elite model home and experience the exceptional lifestyle offered in this stunning master-planned community.

The Bianca Elite is a two-story single-family home featuring five bedrooms and three bathrooms, designed to blend contemporary elegance with functional living spaces. This model home highlights the exquisite architectural details and luxury finishes that have become synonymous with Toll Brothers homes. Pricing for homes in The Isles at Lakewood Ranch start from the low $800,000s.

Reprinted courtesy of Toll Brothers, Inc.

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Construction safety sign

Maryland Touts Work Zone Safety Improvements But Challenges Remain

June 15, 2026 — Jim Parsons - Engineering News-Record

The state of Maryland has made strides in improving work zone safety since the deaths of six workers in a high-profile 2023 crash in Baltimore, but two recent highway fatalities provide grim reminders of the challenges all states face in protecting roadside activities.

ENR may be contacted at enr@enr.com

Reprinted courtesy of Jim Parsons, Engineering News-Record

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Insurance arrows

Executive Insights 2026: Leaders in Surety Bonding and Insurance

June 15, 2026 — Construction Executive

What Ratios and Benchmarks does a Surety use to Evaluate Financial Health?

Matt Donovan
Regional Vice President, Contract Surety
Nationwide

Contract surety underwriting relies on a disciplined financial analysis framework that helps underwriters evaluate a contractor’s ability to complete bonded projects reliably and profitably. To gauge both financial and operational strength, underwriters focus on core metrics that reveal liquidity, leverage, profitability, and workload management—each essential to assessing risk and setting appropriate bond programs. Liquidity remains a foundational measure. Underwriters rely heavily on the current ratio and analyzed working capital to determine whether a contractor can sustain project cash demands and absorb disruptions. Strong liquidity supports short-term performance and directly influences a surety’s willingness to extend or expand single and aggregate bond limits.

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

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Webinar

Think Local, Work Global: Domestic and International Alternative Dispute Resolution Webinar

June 15, 2026 — Beverley BevenFlorez – CDJ Staff

This 90-minute webinar presented by ABA’s Forum on Construction Law “will explore the nuances between domestic and international arbitration.” The faculty “will share lessons learned from decades of experience resolving high-stakes, cross-border disputes and the ways cultural nuance, legal systems, and procedural strategies influence outcomes” and “will highlight both practical pitfalls and innovative approaches to managing complex domestic and international proceedings.”

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