CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - FRIDAY, MAY 15, 2026

Gavel on desk

A recent decision from the Washington Court of Appeals provides important guidance on personal jurisdiction over foreign product manufacturers in construction and infrastructure litigation.

Jurisdiction Over Foreign Manufacturers in Construction Litigation

May 14, 2026
Timothy J. Repass & Miki J. Saito - Wood Smith Henning Berman

A recent decision from the Washington Court of Appeals provides important guidance on personal jurisdiction over foreign product manufacturers in construction and infrastructure litigation. In King County v. Aquatherm GmbH, No. 85572-7-I (Wash.Ct. App.Div.I)(unpublished), the court addressed whether a German manufacturer could be sued in Washington for alleged defects in piping used in major public infrastructure projects. The ruling offers a detailed, fact-driven roadmap for how Washington courts evaluate jurisdiction over foreign manufacturers operating through layered distribution networks. It also reflects a broader trend toward focusing on real-world commercial conduct rather than formal corporate structure.

Background of the Case
King County sued after widespread failures in polypropylene piping installed at the King County Correctional Facility. The pipe, manufactured by Aquatherm GmbH in Germany, was marketed, distributed, and installed through a network of U.S.-based entities. Following a six-week trial, the jury returned a verdict exceeding $18 million on claims under the Washington Product Liability Act and Consumer Protection Act. Aquatherm challenged, among other things, the trial court's exercise of personal jurisdiction.

Reprinted courtesy of Timothy J. Repass, Wood Smith Henning Berman and Miki J. Saito, Wood Smith Henning Berman

Mr. Repass may be contacted at trepass@wshblaw.com
Ms. Saito may be contacted at msaito@wshblaw.com

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CDJ NEWS THIS WEEK



Warranty and other words

Gordon Rees Scully Mansukhani Partner Jonathan Federman, Partner Thomas Cronin, and Senior Counsel Garrett Lee recently secured a victory in the Illinois Appellate Court, Fifth District, on behalf of the firm’s client, an architectural firm, in a liability dispute.

GRSM Secures Illinois Appellate Victory for Architectural Firm in Implied Warranty Dispute

May 14, 2026 — Gordon Rees Scully Mansukhani

Gordon Rees Scully Mansukhani Partner Jonathan Federman, Partner Thomas Cronin, and Senior Counsel Garrett Lee recently secured a victory in the Illinois Appellate Court, Fifth District, on behalf of the firm’s client, an architectural firm, in a liability dispute.

The case arose following an entity’s purchase of a 111-unit building for use as an investment or rental property. The plaintiff made claims against the architect of the building, alleging that there were design defects that breached an implied warranty, as well as a negligence claim.

GRSM argued that an architect could not be liable for implied warranties, particularly for an implied warranty which no Illinois court has ever recognized. GRSM further argued that Illinois law bars an architect from liability for negligence arising from a duty pursuant to contract under the economic loss doctrine.

Reprinted courtesy of Gordon Rees Scully Mansukhani

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Seattle aerial view

Seattle is in the midst of a significant transformation in residential land use policy.

Seattle’s Residential Zoning Transformation: What Property Owners, Buyers, and Investors Should Understand

May 14, 2026 — Lawrence S. Glosser - Ahlers Cressman & Sleight PLLC

Seattle is in the midst of a significant transformation in residential land use policy. Longstanding neighborhood zoning patterns that historically favored detached single-family development are being reexamined in response to housing supply pressures, affordability concerns, and evolving state mandates.

For homeowners, purchasers, investors, and builders, these changes may create substantial new opportunities. They also create a heightened need for careful legal and practical due diligence.

While zoning reform can expand potential uses of property, it does not eliminate the many other constraints that may still govern what can actually be built.

Mr. Glosser may be contacted at larry.glosser@acslawyers.com

Reprinted courtesy of Lawrence S. Glosser, Ahlers Cressman & Sleight PLLC

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Gas fire explosion

This was a complex, multi-party matter arising from a residential gas leak and explosion, where Plaintiffs alleged the City and MFPD failed to properly respond to the incident.

Congratulations to BWB&O’s Orange County Team for Securing a Strong MSJ Result in a Residential Gas Explosion Matter!

May 14, 2026 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

Huge Congratulations to Partner Kevin Wheeler and Associate Lindsey Wells for securing a strong result on a Motion for Summary Judgment / Summary Adjudication filed on behalf of their client, the City of Murrieta. This was a complex, multi-party matter arising from a residential gas leak and explosion, where Plaintiffs alleged the City and MFPD failed to properly respond to the incident. After multiple complaints were consolidated and extensive defense work narrowed the case, eighteen plaintiffs remained asserting five causes of action against the City, prompting a comprehensive MSJ/MSA targeting liability, causation, and damages.

The Court’s ruling reflects a significant win, particularly on the immunity framework. The Court eliminated the core negligence and assumed-duty claims arising from fire protection and emergency response activities. It further disposed of the misrepresentation and public nuisance claims. At the end of the day, three plaintiffs were dismissed entirely for failure to comply with Government Claims Act requirements, further reducing the scope of the case. While the dangerous condition claim remains, it does so in a very limited posture.

Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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Potomac River

Maryland’s complaint claims that based on inspections conducted more than a decade earlier, DC Water should have been aware that the collapsed section of the 72-in.-dia pipeline was at high risk of structural failure.

EPA, Maryland Sue DC Water Over Massive Potomac River Sewage Spill

May 14, 2026 — Jim Parsons - Engineering News-Record

The state of Maryland and the federal government have filed separate lawsuits against the District of Columbia Water and Sewer Authority (DC Water), both alleging that the agency’s failure to address longstanding deterioration in the Potomac Interceptor contributed to a weeklong release of more than 240 million gallons of raw sewage into the Potomac River this past January.

ENR may be contacted at enr@enr.com

Reprinted courtesy of Jim Parsons, Engineering News-Record

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Bridge

In Hendry Corp. v. Metropolitan Dade County, 648 So.2d 140 (Fla. 3d DCA 1995), a contractor was hired by Dade County to demolish the old Rickenbacker Causeway in Miami.

Differing Site Conditions Claim Requires a Misrepresentation

May 14, 2026 — David Adelstein - Florida Construction Legal Updates

If you are entertaining a differing site conditions claim, consider this Third District Court of Appeals case from the mid-90s.

In Hendry Corp. v. Metropolitan Dade County, 648 So.2d 140 (Fla. 3d DCA 1995), a contractor was hired by Dade County to demolish the old Rickenbacker Causeway in Miami. The original 1941 plans of the causeway were made available to contractors. The lowest bidding contractor that was awarded the project based its bid “on its conclusion that the pilings supporting the old bridge were made of concrete.” Hendry, supra at 141. The contractor based this conclusion on the original plans, its visual observation, and experience.

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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Woman frowning at document

The Federal District Court granted the insurer’s motion to dismiss the insured’s complaint seeking a defense of the underlying case alleging fraud.

Fraud Allegations Stymie Additional Insured’s Request for a Defense

May 14, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The Federal District Court granted the insurer’s motion to dismiss the insured’s complaint seeking a defense of the underlying case alleging fraud. Renovation Realty, Inc. v. Colony Ins. Co., 2026 U.S. Dist. LEXIS 21409 (S.D. Cal. Jan. 30, 2026).

Mara Fortin sued Renovation Realty and others (“Fortin litigation”) from the fraudulent sale of a residence. The underlying complaint alleged Renovation “deliberately misrepresented of the residence as ‘completely remodeled’ and ‘meticulously maintained’.” The defendants, however, including Renovation, “knew from sources including a pre-renovation termite report documenting fungus and dry rot . . . that the Property harbored pre-existing material defects.”

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

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

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Judge with gavel

The Superior Court of Pennsylvania considered whether an arbitration provision contained in the online Terms of Service on the defendant’s website were enforceable.

That’s a Wrap! Pennsylvania Court Holds Arbitration Clause in Online Agreement Unenforceable

May 14, 2026 — Gus Sara - The Subrogation Strategist

In Duffy v. Tatum, 2026 Pa. Super. LEXIS 112, 2026 PA Super 41, the Superior Court of Pennsylvania (Superior Court) considered whether an arbitration provision contained in the online Terms of Service on the defendant’s website were enforceable. The plaintiff, Daniel Duffy (Duffy), visited the website of defendant, Dolly, Inc. (Dolly), to purchase moving services. Duffy selected the number of movers, items to be moved and the type of vehicle needed. To complete the booking, the website required Duffy to checkmark a box labeled “By checking this box I accept the Dolly Terms of Service.” Duffy did not have to open the link or scroll to the bottom of the agreement before being able to click on the checkmark box. The Terms of Service included an arbitration provision requiring that any dispute related to the moving services to be resolved by arbitration in accordance with the American Arbitration Association. The Terms of Service did not include any statement that the user was waiving the right to a jury trial. The Superior Court found the internet Terms of Service unenforceable.

During the moving process, an accident occurred and injured Duffy. In May 2024, Duffy and his wife sued Dolly and other related entities alleging negligence and loss of consortium. Dolly filed preliminary objections alleging that the parties agreed to alternative dispute resolution. The lower court overruled the preliminary objections, finding that Dolly’s website did not provide reasonably obvious notice of its Terms of Service to Duffy and, as such, Duffy never agreed to waive his constructional right to a jury trial. Dolly filed an appeal to the Superior Court.

Mr. Sara may be contacted at sarag@whiteandwilliams.com

Reprinted courtesy of Gus Sara, White and Williams LLP

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Welcome to Nevada sign on road

The newly enacted AB3 overhauls NRS 38.250 in seemingly small, but significant ways.

Nevada’s Mandatory Nonbinding Arbitration Law for Civil Cases is Going Through Changes

May 14, 2026 — Brandon Wright & Manuel Gurule - Lewis Brisbois

Nevada currently operates an expedited litigation program designed to resolve civil disputes with a value up to $50,000 without incurring the “usual” expense of litigating these disputes. Over time, however, the number of civil cases that have been “exempted” from this program based on the claimed damages exceeding $50,000 has grown dramatically. In response, the Nevada Legislature recently enacted a number of rule changes designed to streamline Nevada’s arbitration process and include more cases. Among these changes are increasing the arbitration “cap” from $50,000 to $100,000.

By way of background, the Nevada’s Court Annexed Arbitration program is a mandatory, non-binding program for civil cases in judicial districts that have county populations of 100,000 or more [1]. Nevada’s Court Annexed Arbitration was born out of NRS 38.250, which was enacted in 1991 and went into effect in the summer of 1992. The newly enacted NRS 38.250 was regarded as a way to address the problem of increased court caseloads while promoting judicial economy and efficiency in civil cases having a probable jury award of less than $25,000 [2]. Initially, cases that were automatically exempt from the program included class actions, medical malpractice disputes, divorce proceedings, and other domestic relations matters [3].

Reprinted courtesy of Brandon Wright, Lewis Brisbois and Manuel Gurule, Lewis Brisbois

Mr. Wright may be contacted at Brandon.Wright@lewisbrisbois.com
Mr. Gurule may be contacted at Manuel.Gurule@lewisbrisbois.com

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Star Trophy

The selection process is multi-phased and includes independent research and peer nominations, with no more than 2.5 percent of the lawyers in the state named to the Rising Stars list.

Two Snell & Wilmer Attorneys Selected as 2026 San Diego Super Lawyers Rising Stars

May 14, 2026 — Snell & Wilmer

SAN DIEGO – Snell & Wilmer is pleased to announce that two attorneys in the San Diego office have been selected for inclusion in the 2026 San Diego Super Lawyers Rising Stars publication.

Rising Stars is a listing of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. To be eligible for inclusion, a candidate must be either 40 years old or younger or in practice for 10 years or less. The selection process is multi-phased and includes independent research and peer nominations, with no more than 2.5 percent of the lawyers in the state named to the Rising Stars list.

Reprinted courtesy of Snell & Wilmer

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Person holding up umbrella

In a recent article published by the American Bar Association, Hunton attorneys Geoffrey Fehling and Brittany De Vries analyze this recent Fourth Circuit decision in APAC-Atlantic.

Fourth Circuit Extends Coverage to Contractor

May 14, 2026 — Hunton Insurance Recovery Blog

The Fourth Circuit in APAC-Atlantic, Inc. v. Owners Insurance Co., No. 24-1969, 2026 WL 458402 (4th Cir. Feb. 18, 2026) recently endorsed broad coverage for additional insureds, interpreting “arising out of” broadly under North Carolina law to extend coverage to a repaving company under its subcontractor’s liability insurance policy. The court held that an additional insured’s liability “arising out of” a named insured’s work in an additional-insured endorsement means liability “relating to” or “causally connected to” the named insured’s operations, rather than liability defined more narrowly as “caused by” or “the fault of” the named insured.

Reprinted courtesy of Hunton Andrews Kurth LLP

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4 Individuals with question marks above heads

Advertisements often include a disclaimer: “individual results may vary.” Similarly, lawyers are notorious for saying “it depends.”

Project Labor Agreements: A New Bid Protest Forum Split

May 14, 2026 — Dirk D. Haire, David P.J. Timm and Michael J. Brewer - ConsensusDocs

Advertisements often include a disclaimer: “individual results may vary.” Similarly, lawyers are notorious for saying “it depends.” The mandatory Project Labor Agreement (“PLA”) regulations have recently placed into context this adage as it applies to federal contract bid protests, with very different results depending on which forum – the Court of Federal Claims (“COFC”) versus the Government Accountability Office (“GAO”) – different contractors have selected to bring PLA bid protests.

Over the last two years, over 30 protesters have successfully achieved removal of mandatory PLAs from large-scale federal construction contracts based on two landmark bid protest decisions issued by the COFC. Similar challenges to PLAs at the GAO, however, have not been successful in removing PLAs, highlighting an emerging trend that the COFC is often a more effective relief forum than GAO for government construction contractors.

Reprinted courtesy of Dirk D. Haire, Burr & Forman LLP, David P.J. Timm, Burr & Forman LLP and Michael J. Brewer, Burr & Forman LLP

Mr. Haire may be contacted at dhaire@burr.com
Mr. Timm may be contacted at dtimm@burr.com
Mr. Brewer may be contacted at mbrewer@burr.com

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People holding up AI

“The function of AI already far outpaces what construction's ready for now,” says Dodge Construction Network’s Steve Jones. AI is ready for the industry, but how does the industry get ready for AI? A recent CMiC X Dodge survey reveals it may already be.

New Survey Reveals Overwhelmingly Optimistic Results on the Use of AI in Construction

May 14, 2026 — Construction Executive

On December 5, 2025, CMiC and Dodge released a survey asking over 6,000 companies across various sectors of the construction industry their stance on artificial intelligence—whether they use it or not; whether they like it or not; whether they have or are planning to implement it or not; and so on. Considering its reputation for skepticism and reluctance when it comes to adopting new forms of technology, the construction industry pleasantly surprised CMiC and Dodge with its answers to these questions, with 87% of contractors believing AI will have a meaningful impact on construction.

“The research indicates the construction industry is nearing a tipping point for AI adoption,” says Steve Jones, senior director of industry insights at Dodge Construction Network, who sat down with Construction Executive to delve further into the survey questions and answers and what the industry’s current position on them means for AI’s future role in construction.

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

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Chatsworth aerial view

Toll Brothers Announces Final Opportunity to Build a Luxury Home at Hidden Oaks in Chatsworth, California

May 14, 2026 — Toll Brothers, Inc.

CHATSWORTH, Calif., April 16, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, announced the final opportunity for Southern California home shoppers to purchase a new home at its Hidden Oaks community in Chatsworth, California. Only a limited number of homes remain in this intimate enclave providing unparalleled luxury living in a serene setting near the Santa Susana Mountains.

Hidden Oaks features home designs ranging from 4,205 to 5,284 square feet, with 5 to 6 bedrooms, 5.5 to 6.5 bathrooms, and 3-car garages. Priced from $2.1 million, the homes showcase stunning architectural styles, including coastal contemporary, modern, and modern farmhouse, creating a picturesque streetscape. Personalization options include floating staircases, prep kitchens, multi-slide stacking doors, extended outdoor living rooms, and primary suite decks, allowing home shoppers to design a home tailored to their lifestyle.

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Gavel resting on cash money

Construction Jobs Rebound, Jumping by 26K in March

May 14, 2026 — Scott Judy - Engineering News-Record

A month after construction hiring was reported to have fallen to its slowest rate on record, contractors reversed course and increased hiring in March, collectively adding an estimated 26,000 positions, according to the Bureau of Labor Statistics' April 3 report.

Mr. Judy may be contacted at judys@enr.com

Reprinted courtesy of Scott Judy, Engineering News-Record

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Technology highway

Zurich North America Advances Construction Safety with Telematics and Other Data-Driven Risk Solutions

May 14, 2026 — Zurich North America

SCHAUMBURG, Ill., May 4, 2026 /PRNewswire/ -- Everyone goes home safe at night. During National Construction Safety Week, Zurich North America is reinforcing how data and telematics are helping advance that goal. As construction companies face heightened safety risks tied to commercial vehicle operations, Zurich is helping contractors turn real‑time insights into safer driving behaviors, reduced losses and stronger long-term performance.

Anchored in the company's broader commitment to construction safety, Zurich is piloting a construction‑focused video telematics initiative that enables participating customers to securely share fleet vehicle video data with Zurich. Leveraging real-world driving data, the program supports coaching that can contribute to safer fleet operations, more informed underwriting decisions and more targeted risk mitigation, reinforcing prevention as a cornerstone of effective risk management.

Zurich's telematics pilot supports a broader construction risk management strategy that integrates underwriting, claims, data analytics and field‑based risk engineering. Through Zurich Resilience Solutions, Zurich risk engineers apply a forward‑looking, integrated risk perspective—combining connected data, on‑the‑ground risk engineering insights, and targeted behavioral coaching to help customers translate analytics into measurable safety improvements and stronger resilience.

This close alignment between risk engineers and underwriters enables a more comprehensive, end‑to‑end approach to managing complex construction exposures and improving loss performance.

Beyond fleet risks, Zurich offers construction risk solutions aimed at improving jobsite safety and protecting workers. These efforts include technology‑enabled jobsite visibility tools, engineering‑led safety programs and evolving approaches to worker protection, reflecting Zurich's long‑standing focus on prevention, early intervention and partnership.

About Zurich
Zurich U.S. delivers insurance and risk management services to help make businesses and people more resilient. As one of the largest providers of insurance solutions and services to businesses and individuals, Zurich serves midsized and large businesses, including over 90% of the Fortune 500. It employs nearly 9,000 people in the United States. Recognized by Fortune as one of the "World's Most Admired Companies," Zurich has earned its reputation through dedication and excellence.

The Group has more than 65,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at https://www.zurich.com/ and https://www.zurichna.com/.

Seminar

DRI 2026 Insurance Bad Faith and Extra-Contractual Liability Seminar

May 14, 2026 — Beverley BevenFlorez - CDJ Staff

The Association of Lawyers Defending Business (DRI) presents a three-day seminar “for insurance executives, claims professionals, legal professionals, and outside counsel who defend bad faith claims and litigation in their practice.” The program “will showcase top-flight faculty, including policyholder counsel, members of the judiciary, and industry leaders, including DRI's Insurance Law Committee.” The event will also include numerous networking opportunities.

June 3rd-5th, 2026
Omni Louisville Hotel
400 S. 2nd Street
Louisville, Kentucky 40202

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Blueprints and Breakdowns: Construction Defect Claims

This week's guest of Claims Never Sleep Podcast is Jason Novak, a Senior Litigation Specialist II at CapSpecialty.

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Utah's Powered Pavement: Electric Charging Roads Being Developed at Utah State University

Researchers at Utah State University are on the verge of an electric idea. They're rolling out cutting-edge technology, where the road charges your electric car or truck as you drive, KSL News Utah reported.

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