CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - WEDNESDAY, JUNE 3, 2026

Handshake in house under construction

Without documentation, the subcontractor may be left defending claims that the work was performed improperly, even when it followed clear field instructions from others.

“The Superintendent Told Us to Do It:” Why Verbal Approval May Not Be Enough

June 2, 2026
Andrew Lintner - Colorado Construction Litigation Blog

In construction defect litigation, one scenario appears repeatedly: a subcontractor installs work in a manner that differs from the plans, specifications, manufacturer instructions, or industry standards after being verbally directed to do so by the general contractor, superintendent, architect, or owner’s representative.

At the time, the decision may seem minor. The project is moving quickly, the field team wants to maintain progress, and nobody wants to stop working over what appears to be a small issue. The subcontractor may trust the superintendent or project manager and assume the conversation will be remembered later if questions arise.

Years later, however, when the project experiences problems, the people involved may deny the conversation occurred, remember it differently, or simply no longer remember the project. Without written documentation, the subcontractor can find itself defending claims for defective work, even though it performed the installation exactly as directed.

Mr. Lintner may be contacted at alintner@hhmrlaw.com

Reprinted courtesy of Andrew Lintner, Higgins, Hopkins, McLain & Roswell, LLC

Read the full story…

CDJ NEWS THIS WEEK

Illustration of man holding two weights scale

These two widely publicized losses involved different risk management and insurance considerations based on where they occurred.

The Grenfell & Champlain Towers: Risk Management Considerations in the Wake of Catastrophic Loss — A UK/US Comparison

June 2, 2026 — Eric M. Clarkson - Saxe Doernberger & Vita, P.C.

1. Introduction
As part of the multinational collaborative relationship between Saxe Doernberger & Vita, P.C. and Fenchurch Law, we continually find ourselves in conversations about the sometimes subtle but sometimes drastic differences between risk management and coverage considerations from one country to the next. These differences are often highlighted by the fallout from large catastrophic losses that are widely publicized and illuminate sometimes widespread risks and perils that many others may be facing in the coming years.

The response of governments and their subdivisions to the needs of victims and/or commercial parties, and insurance markets’ evaluation of and reactions to catastrophic losses vary widely from country to country and jurisdiction. In this article, we discuss these responses and reactions in the cases of the Grenfell Tower Fire in London, England, and the Champlain Tower collapse in Surfside, Florida, within the United States. These two widely publicized losses involved different risk management and insurance considerations based on where they occurred. They also saw substantially different government responses and raised varied questions about what the next steps are for their respective commercial and insurance markets.

Mr. Clarkson may be contacted at EClarkson@sdvlaw.com

Reprinted courtesy of Eric M. Clarkson, Saxe Doernberger & Vita, P.C.

Read the full story…

Hourglass on desk

The 2nd District Court of Appeal examined whether a subcontractor timely filed a claim against a payment bond when a prime contractor was terminated and replaced by another prime contractor who the subcontractor continued to perform work for.

The Deadline to File Suit on a Public Works Payment Payment Bond is Triggered by a Claimant’s Work on a Project Not by a Claimant’s Work Under a Contract

June 2, 2026 — Garret D. Murai - California Construction Law Blog

California law requires that prime contractors furnish a payment bond – providing for payment to lower-tiered subcontractors and suppliers – on state and local public works projects with a value in excess of $25,000. There are three conditions that must be satisfied when a claimant makes a claim against a payment bond on a public works project in California:

  1. First, generally, the claimant must have served a preliminary notice, unless the claimant is a first-tier subcontractor or supplier;
  2. The claimant must have “ceased to provide work” on the project; and
  3. The claimant must file suit against the payment bond no later than six (6) months after the period in which a stop payment notice must be given or, in other words, the earlier of 270 days after completion of the public works project or 210 days after a notice of completion or cessation was recorded on a public works project.

In Tarlton & Sons, Inc. v. Great American Insurance Company, 111 Cal.App.5th 376 (2025), the 2nd District Court of Appeal examined whether a subcontractor timely filed a claim against a payment bond when a prime contractor was terminated and replaced by another prime contractor who the subcontractor continued to perform work for.

Mr. Murai may be contacted at gmurai@nomosllp.com

Reprinted courtesy of Garret D. Murai, Nomos LLP

Read the full story…

Data Center Under Construction

Developers and practitioners evaluating data center projects in Arizona face a regulatory environment shifting on three fronts simultaneously.

Building in Arizona’s Data Center Boom: How Federal Executive Orders, State Regulation, and National-Security Policy Are Reshaping the Rules for Developers

June 2, 2026 — Ryan J. Regula - Snell & Wilmer

Developers and practitioners evaluating data center projects in Arizona face a regulatory environment shifting on three fronts simultaneously. Federal executive orders are opening new land, streamlining permitting, and channeling financial incentives toward qualifying projects — but they are not preempting the state and local rules that most directly affect project economics. A carve-out in the December 2025 Artificial Intelligence (AI) Framework Executive Order preserves Arizona’s authority over data center infrastructure, meaning the Arizona Corporation Commission’s (ACC) rate-classification docket, municipal zoning restrictions, water-use ordinances, and pending grid cost-allocation legislation remain the binding constraints on project feasibility. Understanding where federal tailwinds end and state and local headwinds begin is essential for any developer sizing risk or selecting sites in the state.

The Federal Landscape: An Interlocking Framework of Executive Orders

Five interlocking executive orders are accelerating data center development nationally, but none overrides Arizona’s authority over siting energy, or infrastructure.

Mr. Regula may be contacted at rregula@swlaw.com

Reprinted courtesy of Ryan J. Regula, Snell & Wilmer

Read the full story…

Hail in hand over roof

The Firth Circuit affirmed the district court’s grant of summary judgment to the insurer due to the insureds’ failure to establish the date of loss after a hailstorm.

Insureds’ Altering Dates for Hailstorm Damage Justifies Denial of Claim

June 2, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The Firth Circuit affirmed the district court’s grant of summary judgment to the insurer due to the insureds’ failure to establish the date of loss after a hailstorm. Cutchall v. Chubb Lloyds Ins. Co. of Texas, 2026 WL 625633 (5th Cir. March 5, 2026).

In September 2021, the Cutchalls made a claim on their policy for interior water damage due to a hailstorm that breached their roof. Chubb retained two engineers to inspect the home, but neither found evidence that a hailstorm caused the damage. Instead, the engineers concluded a variety of other causes, such as poor ventilation and as-built defects, caused the damage. Because Chubb concluded that some of these other causes were covered by the policy, it paid only for the covered portions.

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

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

Read the full story…

Gap

A recent case discusses workers compensation immunity.

Potential Gap in Workers Compensation Immunity Statutory Framework

June 2, 2026 — David Adelstein - Florida Construction Legal Updates

Workers compensation insurance is important. As an owner, you want to ensure the contractors you hire have workers compensation insurance. Assuming you hire a contractor that is statutorily exempt from workers compensation, you want to make sure, no exception, that any subcontractor that is hired has workers compensation insurance. (Regardless, you always want subcontractors to have workers compensation insurance.). In construction, the prime contractor serves as the “statutory employer” for purposes of workers compensation insurance.

With workers compensation comes workers compensation immunity.

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

Reprinted courtesy of David Adelstein, Kirwin Norris

Read the full story…

Testifying Construction and Building Industry Standard of Care Expert Witness

General Construction Investigation - Licensed General Building Contractor CA, AZ, UT, FL

Certified Professional Estimator (ASPE) American Society of Professional Estimators

Extensive testimony experience attendant to numerous commercial and residential construction defect and claims related expert witness designations

(800) 482-1822

www.berthowe.com

Welcome next to Laptop

"We're excited to welcome Jake Scott to our Fort Lauderdale office and Construction Defect Practice Group," said James C. Prichard, Managing Partner at Ball Janik LLP.

Ball Janik LLP Welcomes Construction Defect Attorney and U.S. Air Force Veteran Jake Scott to its Fort Lauderdale Office

June 2, 2026 — Ball Janik LLP

Ball Janik LLP, a leading construction defect and insurance recovery law firm, has welcomed Jake Scott as an associate in its Fort Lauderdale office. Scott joins the Construction Defect Practice Group, bringing experience across construction litigation that includes construction defect, contract dispute, and negligence matters, along with a track record of representing construction professionals through depositions, court appearances, and trial preparation to support the firm's steady growth and client service statewide.

"We're excited to welcome Jake Scott to our Fort Lauderdale office and Construction Defect Practice Group," said James C. Prichard, Managing Partner at Ball Janik LLP. "We look forward to the fresh perspectives and legal solutions he will provide for community associations across South Florida."

Scott is a results-driven attorney dedicated to providing strategic counsel for complex legal challenges. He has experience managing all phases of a case, from early investigation and discovery through trial preparation and settlement negotiations.

Prior to joining Ball Janik, Scott served as an associate attorney in Fort Lauderdale, where he represented clients in construction litigation matters, handled depositions and court appearances, conducted legal research, and drafted pleadings, motions, and briefs. He also worked as an attorney in Tampa, where he represented contractors, subcontractors, and construction firms in defending claims involving construction defects, contractual disputes, and negligence, and worked closely with expert witnesses, engineers, and consultants to develop and present technical evidence.

Scott's experience representing the development and building sides of construction disputes provides a valuable, contrast-driven perspective that supports the strategic evaluation of claims and practical approaches to resolution for Ball Janik's clients.

A proud veteran, Scott served in the United States Air Force for eight years, including roles as an Airspace Control Officer and in Space Systems Operations, supporting safe space flight operations and satellite communications.

Carrying the discipline of airborne operations, Scott worked in the aerospace sector as a Satellite Engineer and Orbital Analyst. He also held a role in the housing sector, supporting marketing and business development initiatives.

Scott received his law degree from Stetson University College of Law. He attended American Military University, where he earned degrees in marketing, business management, and related support services.

About Ball Janik LLP
Ball Janik LLP is a Florida-based law firm offering construction defect, construction law, insurance recovery, and commercial litigation counsel to its local and national clients. The firm was founded in 1982 and has expanded its capabilities, professionals, and geographic footprint. What started as a small firm focused on real property, land use, and litigation (known then as Ball Janik & Novack) has grown to a team of 50-plus attorneys and paralegals in 5 offices in Florida, with centuries of combined experience and capabilities. The firm has been recognized by Chambers USA, U.S. News & World Report and Best Lawyers®, The Best Lawyers in America©, and Corporate International. Read more here: https://www.balljanik.com.

Submit Article For Publication in CDJ

Share your firm’s publications, events, CLEs, seminars, and articles relevant to construction defect and claims matters. Enhance your firm's visibility and promote your expertise by reaching our highly targeted audience of decision-makers, including construction attorneys, builders, owners, and claims professionals.

Blurred woman holding gold star

Meppen is recognized for helping shape the future of the legal profession through her leadership, professionalism, and integrity.

GRSM Partner Debra Ellwood Meppen Recognized as 2026 Legal Visionary by Los Angeles Times

June 2, 2026 — Gordon Rees Scully Mansukhani

Gordon Rees Scully Mansukhani proudly congratulates Partner Debra Ellwood Meppen on being named a 2026 Legal Visionary by the Los Angeles Times. The LA Times Studios 2026 Legal Visionaries List recognizes lawyers in Southern California who “exemplify a forward-thinking approach to the law, elevating both their profession and the people who depend on it.” Meppen is recognized for helping shape the future of the legal profession through her leadership, professionalism, and integrity.

Published as part of the May 2026 issue highlighting Southern California’s leading law firms and attorneys, the Legal Visionaries section honors attorneys making a significant impact on the legal industry and the broader business community.

Reprinted courtesy of Gordon Rees Scully Mansukhani

Read the full story…

Checklist on laptop

Our Base Checklist includes generally and potentially applicable permitting requirements for development and operation, using California as an example.

A Permitting Base Checklist for Data Centers and Power Plants

June 2, 2026 — Michael S. McDonough, Stephen J. Humes & Stacey C. Wright - Gravel2Gavel Construction & Real Estate Law Blog

There is a lot of talk these days about “license to operate” for data centers, meaning management of the relationships with stakeholders and broader communities concerning both the benefits and adverse consequences of locating a facility in a particular locale. Here, we are speaking of “license to operate” more literally—namely, the legal and regulatory permitting and approval requirements for a privately owned data center whether by itself or colocated with a power generating plant.

Our Base Checklist includes generally and potentially applicable permitting requirements for development and operation, using California as an example. (Taking legal authority Frank Sinatra out of context, “If you can make it there, you can make it anywhere.”) The actual requirements for a given facility would depend, in part, on local law, including planning and zoning laws and plans, and the environment of the site. Just as examples, additional permitting and mitigation requirements might apply if sensitive receptors are located nearby (e.g., noise mitigation for residential dwellings), if sensitive and protected biological resources (e.g., jurisdictional waters and/or protected species) would be impacted, or if the present or former land uses require additional measures (e.g., hazardous materials remediation, mitigation for conversion of prime farmland, or protection of cultural resources). The scope of permit requirements would ultimately be determined by the applicable regulatory agencies and by the lead and responsible agencies under the applicable state environmental land use regime—in our reference case here, the California Environmental Quality Act (CEQA).

Reprinted courtesy of Michael S. McDonough, Pillsbury, Stephen J. Humes, Pillsbury and Stacey C. Wright, Pillsbury

Mr. McDonough may be contacted at michael.mcdonough@pillsburylaw.com
Mr. Humes may be contacted at stephen.humes@pillsburylaw.com
Ms. Wright may be contacted at stephen.humes@pillsburylaw.com

Read the full story…

Illustration of business people around trophy

The Los Angeles Times' 2026 Legal Visionaries list honors the most innovative attorneys in Southern California.

Kamran Salour Named to Los Angeles Times' 2026 Legal Visionaries List

June 2, 2026 — Lewis Brisbois

Orange County Partner and Data Privacy & Cybersecurity Practice Co-Chair Kamran Salour was named to the Los Angeles Times' 2026 Legal Visionaries list, which honors the most innovative attorneys in Southern California.

In announcing this year's Legal Visionaries, the Times said that Mr. Salour and his co-honorees "distinguish themselves not only through skilleand results but through an unwavering commitment to their clients, their craft and the communities they serve."

"Their paths – shaped by rigorous education, defining cases and purposeful leadership – offer a deeper perspective on what sets true standouts apart," the Times' announcement stated. "Together, these visionaries exemplify a forward-thinking approach to the law, elevating both their profession and the people who depend on it."

Reprinted courtesy of Lewis Brisbois

Read the full story…

Communication gap

AI rules the data center, but human communication is key in building it.

Communication Gaps Can Cost Construction Firms in the Data Center Boom

June 2, 2026 — Mike Lewis - Construction Executive

The data center construction boom is transforming the construction industry at a historic pace. Fueled by cloud computing, artificial intelligence and relentless demand for digital infrastructure, data centers have become one of the fastest-growing project types in the built environment. Billions of dollars are flowing into new facilities and expansions, creating unprecedented opportunities for construction firms positioned to deliver reliably.

But opportunity alone does not guarantee success. As competition intensifies, communication failures and poor information management are emerging as some of the most common (and costly) reasons firms lose margins, miss deadlines or fail to secure repeat work. In data center construction, where schedules are compressed and tolerance for error is minimal, even small breakdowns in communication can have outsized consequences.

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

Read the full story…

Data on laptop AI

Aarni Heiskanen interview with Pavlina Nikolova of Egnyte: What the AEC firms' memory problem is, what causes it, and how to solve it to become AI-ready.

Your AEC Firm Has a Memory Problem. Here Is How to Fix It

June 1, 2026 — Aarni Heiskanen - AEC Business

AEC companies trying to operationalize AI often find they lack the data foundation on which to build. There may be an abundance of data hidden in documents, but you can’t reliably use it for AI.

The lack of data quality was a key topic discussed at the AI in AEC 2026 conference. During the event, I met many experts working to solve this problem, including Pavlina Nikolova, Egnyte‘s EMEA AEC Practice Lead. The chat and her presentation highlighted the challenges and ways to overcome them.

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

Reprinted courtesy of Aarni Heiskanen, AEC Business

Read the full story…

Moon Landing photo

The technology that comes out of space programs like Artemis, also needs to be patented for terrestrial uses.

Navigating Timelines and Technology: Patent Strategies for Space and Earth

June 1, 2026 — Kate Nuehring Su & Vanessa Wang - Engineering News-Record

More than half a century after the Apollo 11 landing fulfilled President John F. Kennedy’s bold vision, the global race back to the Moon is no longer theoretical. With renewed attention on NASA’s Artemis program and a surge of commercial investment in space infrastructure, lunar exploration is again shaping technology priorities here on Earth.

Reprinted courtesy of Kate Nuehring Su, Engineering News-Record and Vanessa Wang, Engineering News-Record

ENR may be contacted at enr@enr.com

Read the full story…

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

Houston Texas Skyline

Toll Brothers Announces New Houston-area Luxury Home Community Coming Soon to Richmond, Texas

June 1, 2026 — Toll Brothers, Inc.

RICHMOND, Texas, April 15, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation's leading builder of luxury homes, today announced its newest Houston-area luxury home community, Toll Brothers at Revera, is coming soon to Richmond, Texas. Offering spacious homes on 50- and 60-foot-wide home sites, this master-planned community will feature exclusive resort-style amenities and a picturesque setting ideal for exceptional living. Site work is underway at 1615 Seaside Horizon Lane in Richmond, and the community is anticipated to open for sale in summer 2026.

Home shoppers at Toll Brothers at Revera will enjoy a thoughtfully designed community that combines modern architecture with luxurious finishes. Floor plans will range up to 3,175+ square feet for homes in the Costa Collection and 3,900+ square feet for homes in the Oasis Collection. Prices are anticipated to start in the mid-$400,000s.

Reprinted courtesy of Toll Brothers, Inc.

Read the full story…

2025 turning to 2026 Trends blocks

Selective Growth: FMI’s 2026 North American Engineering & Construction Outlook

June 1, 2026 — Construction Executive

Construction activity in North America is expected to stabilize but grow modestly in 2026 as the industry navigates high interest rates, uneven private development and strong infrastructure demand, according to FMI’s 2026 North American Engineering & Construction Outlook. While overall spending is projected to rebound slightly, growth will vary significantly by sector as contractors balance risk, financing constraints and shifting project pipelines.

Key findings from the report include:

  • Modest spending growth: Total U.S. construction put in place is forecast to increase about 1% in 2026 to roughly $2.2 trillion after a slight decline in 2025.
  • Sector divergence: Public infrastructure and government-funded projects are expected to remain relatively strong, helping offset weaker activity in several private building segments.

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

Read the full story…

AI contours

The Evolving Contours of Artificial Intelligence as a D&O Exposure

June 1, 2026 — Geoffrey B. Fehling, Michael S. Levine & Yaniel Abreu - Hunton Insurance Recovery Blog

A recent securities class action, Dunn v. Upstart Holdings, Inc., brought against Upstart – a fintech lender – underscores emerging AI-related D&O risks. Filed April 2026 in California federal court, the suit alleges that Upstart and its executives misled investors about the performance of its AI loan underwriting model. When Upstart’s AI Model 22 underperformed, the company’s stock plunged, prompting an investor lawsuit claiming that management knew about calibration failures. The case spotlights the D&O insurance implications of artificial intelligence in corporate operations. Company executives face new exposures if AI algorithms malfunction or produce biased outcomes. For policyholders, D&O policies may provide coverage for defense and, possibly, liability in securities suits alleging misrepresentations about AI systems. Insurers, however, are starting to add AI exclusions or sublimits, wary of the unpredictable liability posed by opaque AI models.

Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth LLP, Michael S. Levine, Hunton Andrews Kurth LLP and Yaniel Abreu, Hunton Andrews Kurth LLP

Mr. Fehling may be contacted at gfehling@hunton.com
Mr. Levine may be contacted at mlevine@hunton.com
Mr. Abreu may be contacted at mlevine@hunton.com

Read the full story…

Webinar laptop

ABA Webinar: AI as Ammo

June 1, 2026 — Beverley BevenFlorez – CDJ Staff

This ABA Webinar discusses AI and how it is used in eDiscovery. The event “will cover the key applications, benefits, and ethics an eDiscovery approach plays a decisive role for real estate and construction practitioners in today's litigation world.” Learning Objectives include “The distinct types and uses of AI available and accepted by Courts,” “Overview of the cases where courts have adopted the use of AI by parties,” and “When AI goes wrong: hallucinations, disputes, and court rulings” and more.

June 17th, 2026
Virtual Event

Read the full story…

Subscribe to CDJ Newsletter

Weekly Construction Defect and Claims News  - Direct to Your Inbox

More Than 9000 Construction Defect and Claims Related Expert Witness Engagements

Bert L.. Howe & Associates, Inc., provides construction-related expert witness investigation and trial support services to the nation's most recognized publicly traded builders, commercial general liability carriers, law firms, and construction practice groups. To schedule a no-cost consultation with a construction or design expert possessing the credentials, licensures, and qualifications best suited to your matter, please contact us at 800.482.1822

Arrange Consultation

Much Of $2.5B Fire Relief Did Not Reach Eaton, Palisades Victims

NBC4 Investigates learned at least 60% of the money was not spent while January wildfire victims grappled with financial struggles. Eric Leonard reports for the NBC4 News.

CDJ Video Channel

Victim of OC Chemical Tank Crisis Says His Insurance Claim Was Denied

Businessowners who were negatively impacted by the emergency are also seeking financial assistance. Hetty Chang and Amber Frias report for the NBC4 News.

CDJ Video Channel


Consulting General Contractor - Certified Construction Cost Estimating Expert Witness

Certified Professional Estimator (ASPE) American Society of Professional Estimators

Licensed General Contractor (778968), State of California, Licensed General Contractor (072729), State of Nevada

Fire Loss Reconstruction Cost Estimating Expert

(800) 482-1822

www.berthowe.com