CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, JULY 21, 2026

Hand holding electric brain

A settlement agreement does not need to be executed for it to be enforceable as long as there was a meeting of the minds.

Settlement Agreements and Contracts Require a Meeting of the Minds

July 20, 2026
David Adelstein - Florida Construction Legal Updates

A settlement agreement does not need to be executed for it to be enforceable as long as there was a MEETING OF THE MINDS. The same rings true for any contract regardless of whether the contract is signed – THERE NEEDS TO BE A MEETING OF THE MINDS.

In a recent case dealing with the settlement agreement on a construction lien, the essential settlement terms (money and mutual release) were memorialized in an e-mail exchange between the parties (owner and subcontractor). The settlement required the owner to pay the principal amount plus some attorney’s fees and then a mutual general release would be prepared. In response to the confirmatory email, the owner sent a check, which the subcontractor deposited, but the owner refused to sign the release signed and sent by the subcontractor. The owner further claimed it doesn’t need to pay the attorney’s fees because the lien amount was paid in full. The subcontractor sued arguing the owner breached the terms of the settlement. The appellate court agreed.

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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CDJ NEWS THIS WEEK



Water leaking from pipe

The insurer’s motion for summary judgment seeking to eliminate the insured’s claims for damage from a water leak, bad faith and punitive damages failed.

Insurer Cannot Dispose of Water Leak or Bad Faith Claims on Motion for Summary Judgment

July 20, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The insurer’s motion for summary judgment seeking to eliminate the insured’s claims for damage from a water leak, bad faith and punitive damages failed. Nargizyan v, State Farm General Ins. Co., 2026 Cal App. LEXIS 302 (Cal. Ct. App. April 15, 2026).

The insured noticed tiles on his kitchen floor were warmer than usual. He found water dripping from the top of the crawl space under the house. He noticed water was “dripping in different places” but not pouring like a faucet. “There were too many places to count where water was dripping and there was water all over the place.”

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

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

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Person pointing at contract clause

The Utah Court of Appeals recently reaffirmed, in the construction context, Utah’s strict approach to enforcing integration clauses to preclude parol evidence and other legal theories that would vary the written terms of a contract.

Integration Can Inoculate in Utah

July 20, 2026 — Mark O. Morris - Snell & Wilmer

The Utah Court of Appeals recently reaffirmed, in the construction context, Utah’s strict approach to enforcing integration clauses to preclude parol evidence and other legal theories that would vary the written terms of a contract. In Reid v. All Surface LC, 2025 UT App 134, decided last September, the court affirmed in all respects the trial court’s grant of summary judgment based on the strength of an integration clause against a homeowner who sued a contractor for breach of contract, breach of the covenant of good faith and fair dealing, fraud, negligent misrepresentation, civil conspiracy, negligence, and breach of the implied warranty of habitability. More recently, however, the same court rejected those same arguments in Tidwell v. Jensen, 2026 UT App 13 as to tort claims arising from a used car sale.

The facts in Reid were sympathetic to the plaintiff. After being told she had a mold issue near a defective basement shower, the plaintiff solicited bids. A remediation contractor advised that while it could address the mold, the shower replacement should be handled by someone else. The plaintiff contacted All Surface LC, a shower replacement contractor. During an interview, the sales representative stated that All Surface could “do full mold remediation, tear everything out, and reframe the shower.” The plaintiff ultimately retained All Surface, expecting it would both resolve the mold issues and replace the shower.

Mr. Morris may be contacted at mmorris@swlaw.com

Reprinted courtesy of Mark O. Morris, Snell & Wilmer

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Interior train or streetcar

Finish line is in sight for California's Orange County Streetcar project.

OC Streetcar Project Mediation Sets $50M Payment to Walsh

July 20, 2026 — Richard Korman - Engineering News-Record

Walsh Construction told a California state court judge last month that lawsuit mediation of its claims on an Orange County light-rail project—known as OC Streetcar—had produced a settlement of some claims under which the county agreed to pay the contractor almost an additional $50 million.

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

Reprinted courtesy of Richard Korman, Engineering News-Record

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Homeowners Association

A Gordon Rees Scully Mansukhani multi-state team obtained a defense verdict on behalf of a HOA in an Orange County Superior Court bench trial spanning two months.

GRSM Team Obtains Defense Verdict for Homeowners’ Association in Orange County Superior Court

July 20, 2026 — Gordon Rees Scully Mansukhani

A Gordon Rees Scully Mansukhani multi-state team, including Partners Christine Barker, Sean Ferron, and Keith Cramer, obtained a defense verdict on behalf of a homeowners’ association (HOA) in an Orange County Superior Court bench trial spanning two months.

The case began in 2022 when a homeowner sued after the Architectural Review Committee and HOA Board of Directors declined his teardown-and-rebuild plans due to view and aesthetic concerns. After a motion for summary judgment ruling in which the court found that the existing covenants, conditions, and restrictions (CC&Rs) did not protect views, the HOA held a special election to add explicit view protections to the CC&Rs. At the February 2025 trial call, the plaintiff sought leave to file a third amended complaint challenging the validity of that vote, drastically reframing the case from CC&R enforcement to one of election validity. A second plaintiff then filed a parallel action toward the end of the limitations period, and the two cases were consolidated.

Reprinted courtesy of Gordon Rees Scully Mansukhani

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Stadium under construction

The North American stadium construction boom is back and it's bigger, more complex and riskier than ever.

Hidden Risks Behind Today’s Stadium Construction Boom

July 20, 2026 — Thomas Strong, Andrew Canning & Marc Gnesin - Construction Executive

After a decade-plus lull, professional sports leagues, universities and municipalities are once again spending heavily on new stadiums and major renovations. In the NFL alone, multiple marquee projects are underway or planned, representing more than $10 billion in facilities and mixed-use entertainment districts, rivaling or exceeding the scale of development during the last stadium-build cycle of the early 2000s.

Beneath the excitement of architectural ambition and civic pride lies a risk landscape that has fundamentally changed since the last wave of stadium construction. Teams, cities and contractors that rely on outdated assumptions may find themselves exposed to cost overruns, schedule delays and liabilities that are far more difficult to unwind once construction is underway.

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

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Gavel on desk person signing something

Seattle Partner Kathleen A. Nelson and Associate Synova M. L. Edwards prevailed on a hotly contested motion for summary judgment in Whatcom County, Washington court in a real estate broker professional liability action.

Seattle Team Obtains Summary Judgment in Real Estate Broker Professional Liability Action

July 20, 2026 — Lewis Brisbois

Seattle Partner Kathleen A. Nelson and Associate Synova M. L. Edwards prevailed on a hotly contested motion for summary judgment in Whatcom County, Washington court in a real estate broker professional liability action.

The plaintiff filed an action against Lewis Brisbois' clients, a real estate agent and brokerage firm, among several others, including the title company, purchasers and others related to the sale of real property following his complicated and long running divorce action. These claims primarily arose out of the clients’ reliance on an order signed by the court in the underlying divorce action. The order allowed the clients to execute the purchase and sale agreement, as the plaintiff was non-cooperative.

Reprinted courtesy of Lewis Brisbois

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In Pillsbury's latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!

Real Estate & Construction News Roundup (7/8/26) – Data Centers Negotiate Flexibility for Speed, Hotel Deal Activities Focus on Luxury, and DC Sues Apartment Owners

July 20, 2026 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog

In our latest roundup, rail projects gain steam across the U.S., AI optimizes building operations, a modular approach speeds data center construction, and more!

  • Hyperscalers want their data centers online, and utilities want to provide interconnections, but both are still looking for common operating guidelines. (Herman K. Trabish, Construction Dive)
  • Contractors are taking advantage of multibillion-dollar train and transit contracts, even as funding challenges create hurdles for project execution. (Matthew Thibault, Construction Dive)
  • Although hospitality and leisure M&A deal volume was down 2.5% in the first half of 2026 compared to the prior six months, investors are concentrating on the upper end of the market, including luxury hotels, wellness resorts and gaming, or “data-rich,” platforms. (Noor Adatia, Hotel Dive)

Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Construction contract

Because General Liability policies and Builder’s Risk policies provide coverage for different risks, COC exclusions can create a gap in coverage for owners and contractors.

Course of Construction Exclusions and the CGL Policy

July 20, 2026 — Anna M. Perry, Rachel S. Kindseth & Nina Catanzaro - Saxe Doernberger & Vita, P.C.

I. Course of Construction Exclusions
Course of Construction (“COC”) exclusions are found on General Liability and excess liability policies, typically a wrap-up or project specific policy, and generally exclude “all property damage occurring during the course of construction.” Insurers claim COC exclusions are not problematic because they are intended to prevent an overlap in coverage between the general liability policy and first-party property Builder’s Risk policy. However, because General Liability policies and Builder’s Risk policies provide coverage for different risks, COC exclusions can create a gap in coverage for owners and contractors. Therefore, any exclusion on a wrap-up or project specific policy that limits coverage for property damage liability should be scrutinized, and amendments sought when warranted and commercially achievable, for owners, developers and contractors because General Liability policies do not cover the same risk as that of a Builder’s Risk policy.

General liability policies provide defense and indemnity to the insured(s) for claims made by a third-party against the insured. Broad COC exclusions serve to preclude coverage for all property damage, not just property damage to the insured project. This includes property damage to property other than the insured project, e.g. an adjacent property. On the other hand, Builder’s Risk policies provide first-party property coverage for direct physical loss to the project during the course of construction. The Builder’s Risk policy will not provide coverage for property other than the project itself (e.g., adjacent property) and it will not provide a defense or indemnity in the event the owner of the damaged property brings a claim against a potentially at-fault party.

Reprinted courtesy of Anna M. Perry, Saxe Doernberger & Vita, P.C., Rachel S. Kindseth, Saxe Doernberger & Vita, P.C. and Nina Catanzaro, Saxe Doernberger & Vita, P.C.

Ms. Perry may be contacted at APerry@sdvlaw.com
Ms. Kindseth may be contacted at rkindseth@sdvlaw.com
Ms. Catanzaro may be contacted at NCatanzaro@sdvlaw.com

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Stars

This year’s honorees reflect the depth of Wilke Fleury’s litigation, business, healthcare, employment, bankruptcy, appellate, real estate, construction, and estate planning practices.

Wilke Fleury Attorneys Recognized by 2026 Northern California Super Lawyers and Rising Stars!

July 20, 2026 — Wilke Fleury

Wilke Fleury is pleased to announce that 18 of the firm’s attorneys have been selected for inclusion on the 2026 Northern California Super Lawyers and Rising Stars lists.

The annual Super Lawyers and Rising Stars selections recognize attorneys across a wide range of practice areas. This year’s honorees reflect the depth of Wilke Fleury’s litigation, business, healthcare, employment, bankruptcy, appellate, real estate, construction, and estate planning practices.

Reprinted courtesy of Wilke Fleury

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Contract meeting

This post highlights the power policyholders still hold in the negotiation process and illustrates, with concrete examples from recent media-covered disputes, how that freedom can be strategically used.

Celebrating Freedom: The Overlooked Freedom to Contract in Commercial Insurance

July 20, 2026 — Michael S. Levine & Andrea DeField - Hunton Insurance Recovery Blog

Happy 4th and 250 years of freedom . . . to contract!

Many policyholders assume insurance policies are “standard” and must be accepted as-is. That assumption is often wrong—and dangerously limiting. Unlike many consumer insurance markets, the commercial insurance realm preserves a robust “freedom to contract,” allowing sophisticated policyholders to negotiate terms, exclusions, definitions, and limits before a policy is even issued. Particularly in recent years, high-profile disputes over cyber coverage, business interruption, and war/cyber exclusions have shown not just what happens when coverage is denied, but what could have been done up front to avoid those fights.

This post highlights the power policyholders still hold in the negotiation process and illustrates, with concrete examples from recent media-covered disputes, how that freedom can be strategically used.

Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth LLP and Andrea DeField, Hunton Andrews Kurth LLP

Mr. Levine may be contacted at mlevine@hunton.com
Ms. DeField may be contacted at adefield@hunton.com

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Sixteen and confetti spring from box

July 1st marks the 16th anniversary of Mr. Hill's first day as a solo practitioner of construction law at The Law Office of Christopher G. Hill, PC.

The Firm Turns 16!

July 20, 2026 — Christopher G. Hill - Construction Law Musings

I have always found it appropriate that my jump to solo practice and Independence Day are so close in time. Today marks the 16th anniversary of my first day as a solo practitioner of construction law at The Law Office of Christopher G. Hill, PC. Time sure has flown by thanks to the great clients and friends who followed me to solo practice and whom I have met since the firm’s founding on July 1, 2010. I also could not have made the transition and had the fun and success I have enjoyed over the past 16 years without the support of the best wife and family that any construction lawyer could want.

Since the firm’s last anniversary, my youngest child (who was 7 when this journey began!) has graduated from N. C. State University with a fisheries and wildlife biology degree and is currently in Casper, Wyoming working for Wyoming Game & Fish, my second oldest is an assistant director of admissions at Appalachian State University in Boone, NC, and has celebrated his second wedding anniversary, and my oldest has celebrated her fifth marriage anniversary. Our home in Captiva, Florida continues its recovery from from Hurricane Ian and subsequent hurricanes.

Reprinted courtesy of The Law Office of Christopher G. Hill

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Fixed Price

Some engineering firms offer professional services as fixed-price products. Is it a smart move or a dangerous practice?

Turning Expert Services into Products

July 20, 2026 — Aarni Heiskanen - AEC Business

A Finnish engineering, architecture, and project consulting company, AINS Group, recently opened an online store to purchase fixed-price services. The store presents specialist work in a product-like format, with fixed service names, defined scopes, and visible prices, such as a building history report, a zoning plan cost analysis, and a technical preliminary survey for a property transaction.

Is this productization a smart move or a sign that expert services are being commoditized?

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

Reprinted courtesy of Aarni Heiskanen, AEC Business

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Apartment or Condo Building

Multifamily Housing Boosts Overall Housing in June

July 20, 2026 — Beverley BevenFlorez – CDJ Staff

According to a recent post by Eye on Housing, “multifamily growth pushed overall housing starts higher in June, while single-family production remained sluggish as elevated mortgage rates, rising construction costs and persistent labor shortages continued to weigh on the market.” A report by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau shows that overall housing starts rose by 19 percent in June. In addition, “[m]ultifamily starts, which include apartment buildings and condominiums, rose 76.2% from May to June to an annualized 532,000 pace.”

Construction site

Nonresidential Construction Spending Grows on Public Sector Strength in April

July 20, 2026 — ABC - Construction Executive

WASHINGTON, June 1—National nonresidential construction spending increased 0.1% in April, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.250 trillion.

Spending was up on a monthly basis in 10 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.2%, while public nonresidential construction spending was up 0.4% in April.

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

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Data Center interior

Data Center Dispute Reinforces Broad Duty to Defend Standard

July 20, 2026 — Michael S. Levine & Yosef Itkin - Hunton Andrews Kurth LLP

A federal court decision in Navigators Specialty Insurance Company v. SVO Building One, LLC emphasizes the breadth of the duty to defend under California law and the difficulty insurers face when attempting to allocate defense costs between covered and uncovered claims. The insurance dispute between Navigators and SVO arose from a lawsuit by an equipment manufacturer, Vertiv, against SVO, a data center designer, involving a data center project.

Navigators agreed to defend SVO after a defamation claim was brought against it by Vertiv. After the defamation claim was voluntarily dismissed, Navigators tried to withdraw its defense but ultimately continued defending SVO through resolution. Navigators then sued SVO, seeking reimbursement for defense costs, arguing that upon dismissal of the defamation claim, there could be no coverage for the remaining claims.

Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth LLP and Yosef Itkin, Hunton Andrews Kurth LLP

Mr. Levine may be contacted at mlevine@hunton.com
Mr. Itkin may be contacted at yitkin@hunton.com

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Seminar

RIMS Texas Regional Conference 2026

July 20, 2026 — Kelly A. Johnson - Saxe Doernberger & Vita, P.C.

Learn the fundamentals of developing an effective builder’s risk program, including key coverage considerations, contractual requirements, risk management strategies, and best practices for handling claims from project inception through loss recovery.

Mastering Builders Risk Insurance
Wednesday, August 12, 2026 – 9:30 AM CDT
Kelly A. Johnson, Saxe Doernberger & Vita, P.C.
Dina Senerchia, Ankura

This course delves into the essential elements of establishing a builder’s risk program tailored for owners, developers, general contractors, and subcontractors. Participants will gain a comprehensive understanding of the contractual foundations required from the project’s inception and the necessary coverages. The course will address issues such as faulty workmanship and professional liability. Through the examination of past project experiences, attendees will learn how to identify crucial items and values to consider in their policies. Additionally, the course will provide guidance on managing claims effectively in the event of a loss.

Ms. Johnson may be contacted at KJohnson@sdvlaw.com

Reprinted courtesy of Kelly A. Johnson, Saxe Doernberger & Vita, P.C.

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5 Water Main Breaks in a Week Raising Questions About Los Angeles' Aging Infrastructure

A series of water main breaks across Los Angeles has raised concerns about the city’s aging underground infrastructure, FOX 11 Los Angeles reported.

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Insurance Tips for Those Affected by West Hollywood Flooding

KTLA consumer reporter David Lazarus gives insurance tips for those affected by flooding from the century-old water main that burst in West Hollywood this week.

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