CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, AUGUST 25, 2026

Independent definition

Keep this discussion in mind when trying to create or assert tort claims to navigate around the contract or the economic damages being asserted do what may be nothing but a breach of contract.

What Is the Independent Tort Doctrine? New Case Explains…

August 24, 2026
David Adelstein - Florida Construction Legal Updates

Florida’s Sixth District Court of Appeals in Atout v. HHM Land Trust Dated October 29, 2013, 51 Fla.L.Weekly D1569a (Fla. 6th DCA 2026) recently included an extensive discussion on Florida’s independent tort doctrine. The independent tort doctrine is an important legal doctrine, particularly when parties are in contractual privity. This doctrine stands for the proposition that tort claims must be independent of any breach of contract. See Atout, supra. The Sixth District’s extensive discussion analyzed the indicators to determine this “independence,” which may arise from the source of the duty, the asserted conduct, the damages sought, or even public policy:

Unlike claims that rely on contractual relationships, an “independent” tort is often characterized by a duty imposed by law rather than by agreement. As to this consideration, United States District Court Judge Steven Merryday has explained that the independent tort doctrine honors the same divide as the economic loss rule, but rather than looking at the nature of the loss, it focuses on the source of the duty allegedly breached. “If a contract imposes a duty, and the defendant breaches that duty, the plaintiff must sue for breach of contract. If society imposes the duty, the plaintiff must sue in tort.” Following this reasoning, courts should consider whether the alleged breach of a duty in tort coincides or overlaps with a duty imposed by a contract. If the duty at issue is within the scope of a contract, and the relationship of the parties that led to the creation of that duty stems from a contract, then that duty’s source is from contract and any alleged tort claims based on a breach of those duties may not be “independent.”

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

Reprinted courtesy of David Adelstein, Kirwin Norris

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CDJ NEWS THIS WEEK

Hurricane

The insured submitted a claim for damages to real property owned by the insured allegedly caused by Hurricane Helene.

Generic Complaint Alleging Bad Faith is Insufficient

August 24, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The federal district court granted the insurer’s motion for judgment on the pleadings after determining that the insured’s claims for bad faith and unfair claims settlement practices were insufficiently pled. Navia v. State Farm Fire & Cas. Co., 2026 U.S. Dist. LEXIS 111261 (W.D. N. C. May 20, 2026).

The insured submitted a claim for damages to real property owned by the insured allegedly caused by Hurricane Helene. State Farm advised the insured that only some of the claimed damages were covered by the policy and payment for such damages were denied because the estimate for the covered damages did not exceed the policy’s deductible. The insured sued asserting claims for breach of contract, bad faith, and unfair claim settlement practices.

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

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

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Courthouse exterior

McMahan arose from a hit-and-run where a tractor-trailer collided with safety barricades and injured a construction worker.

Arizona Supreme Court Clarifies Parties’ Post-Default Conduct Cannot Validate Void Default Orders

August 24, 2026 — Joseph Kanefield, Ryan P. Hogan & Lilly M. Geiler - Snell & Wilmer

After filing a lawsuit, the first step is always serving process on the opposing party. While that preliminary step sounds basic enough, in McMahan v. Grasshopper, the Arizona Supreme Court recently provided a helpful refresher on the nuances of the service requirement and its importance in litigation for plaintiffs and defendants alike.1

Background
McMahan arose from a hit-and-run where a tractor-trailer collided with safety barricades and injured a construction worker. The construction worker sued the tractor-trailer company, and he attempted to serve the company by leaving a copy of the complaint with the assistant to the company’s statutory agent who forwarded the complaint to the company. The assistant, however, was not authorized to accept service on the company’s behalf. Before the company appeared in the action, the construction worker successfully obtained an entry of default.

Reprinted courtesy of Joseph Kanefield, Snell & Wilmer, Ryan P. Hogan, Snell & Wilmer and Lilly M. Geiler, Snell & Wilmer

Mr. Kanefield may be contacted at jkanefield@swlaw.com
Mr. Hogan may be contacted at rhogan@swlaw.com
Ms. Geiler may be contacted at lgeiler@swlaw.com

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Good Better Best

hite and Williams LLP is pleased to congratulate their attorneys recognized among the 2027 Best Lawyers in America® rankings.

Best Lawyers Recognizes 33 White and Williams LLP Lawyers

August 24, 2026 — White and Williams LLP

White and Williams LLP is pleased to congratulate our attorneys recognized among the 2027 Best Lawyers in America® rankings.

Best Lawyers® has recognized Michael W. Horner, Chair of the Healthcare Group and Managing Partner of the Cherry Hill, NJ Office, as a 2027 "Lawyer of the Year” in the area of Litigation - Insurance for Cherry Hill. Michael Horner’s has extensive experience litigating, mediating and arbitrating complex catastrophic cases throughout multiple jurisdictions in the Northeast, with litigation and counseling experience that spans several decades in the areas of healthcare, catastrophic loss and employment matters in multiple state and federal jurisdictions.

Reprinted courtesy of White and Williams LLP

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California flag gavel

Recently, the California Supreme Court addressed this split of authority and, in doing so, handed down a significant win for policyholders.

Actual Controversy Without Actual Exhaustion: California Supreme Court Allows Declaratory Relief and Bad Faith Claims Against Excess Insurers

August 24, 2026 — Kyle A. Rudolph - Saxe Doernberger & Vita, P.C.

California courts were previously split on the issue of whether an insured may bring declaratory relief claims against excess insurers prior to the exhaustion of underlying insurance. Some California courts held that the actual exhaustion of underlying insurance was necessary, whereas other courts allowed for these types of claims to proceed.[1]

Recently, the California Supreme Court addressed this split of authority and, in doing so, handed down a significant win for policyholders. In Fox Paine & Company, LLC, et al. v. Twin City Fire Insurance Company et al., the Court held that insureds may proceed with bringing forth viable declaratory relief and bad faith claims against excess insurers prior to the exhaustion of underlying insurance.[2] A summary of the Court’s opinion is provided below.

Mr. Rudolph may be contacted at KRudolph@sdvlaw.com

Reprinted courtesy of Kyle A. Rudolph, Saxe Doernberger & Vita, P.C.

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Best

Congratulations to the 11 Payne & Fears attorneys included in the 2027 Edition of “Lawyer of the Year” and The Best Lawyers In America®.

11 Payne & Fears Attorneys Honored by Best Lawyers

August 24, 2026 — Payne & Fears

Congratulations to the 11 Payne & Fears attorneys included in the 2027 Edition of “Lawyer of the Year” and The Best Lawyers In America®. Attorneys have been recognized in the following practice areas:

“Lawyer of the Year” (2027 Edition)
Orange County

  • Benjamin A. Nix
    • Trade Secrets Law

The Best Lawyers in America® (2027 Edition)
Irvine, CA

  • Jeffrey K. Brown
    • Employment Law – Management
    • Labor Law – Management
    • Litigation – Labor and Employment
  • Daniel F. Fears
    • Employment Law – Management
    • Labor Law – Management
    • Litigation – Labor and Employment
  • Daniel M. Livingston
    • Commercial Litigation
    • Litigation – Real Estate

Reprinted courtesy of Payne & Fears

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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

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www.berthowe.com

Animal clinic exterior

Animal care facilities are among the most complex and specialized segments of the construction industry, and that can lead to legal complications.

Did You Know: Unique Legal Considerations for Animal Care Facilities

August 24, 2026 — Hannah Skidmore - Construction Executive

Animal care facilities are highly specialized environments that require expertise far beyond traditional commercial or even standard medical construction. Whether designing and building animal shelters, doggy daycares, veterinary clinics or full-service animal hospitals, these facilities operate under conditions that introduce unique challenges related to sanitation, durability, animal behavior and operational workflows.

Because of these complexities, projects that fail to account for animal care requirements adequately often encounter costly issues—many of which result in litigation. Below are real-world examples drawn from expert witness work, followed by proactive best practices construction professionals should apply to future animal care projects.

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

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Best

Gordon Rees Scully Mansukhani is pleased to announce that 183 of its attorneys were listed in The Best Lawyers in America© 2027 Edition.

GRSM Attorneys Recognized in The Best Lawyers in America® 2027

August 24, 2026 — Gordon Rees Scully Mansukhani

Gordon Rees Scully Mansukhani is pleased to announce that 183 of its attorneys were listed in The Best Lawyers in America© 2027 Edition, six of whom received “Lawyer of the Year” recognitions. Additionally, 49 GRSM attorneys were recognized in Best Lawyers: Ones to Watch 2027.

Best Lawyers lists are compiled based on peer-review evaluations. For the 2027 edition of The Best Lawyers in America®, results were determined using millions of confidential attorney evaluations. Ones to Watch adopts the same peer-review methodology.

Reprinted courtesy of Gordon Rees Scully Mansukhani

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Article

Mr. Gendron’s articles discuss evolving standards governing various types of damages in commercial litigation across jurisdictions in D.C. and Maryland.

Andrew Gendron Authors D.C., Maryland Damages Compendium Articles for Defense Counsel Journal’s “Damages Compendium – East of the Mississippi”

August 24, 2026 — Lewis Brisbois

Baltimore Partner Andrew Gendron recently penned the District of Columbia (D.C.) and Maryland damages compendium articles for the Defense Counsel Journal’s “Damages Compendium – East of the Mississippi,” which appears in the publication’s June 2026 issue. Mr. Gendron’s articles discuss evolving standards governing various types of damages in commercial litigation across jurisdictions in D.C. and Maryland.

In the compendium articles, Mr. Gendron describes the circumstances under which parties may recover various types of damages, citing to the relevant portions of the D.C. Code and Annotated Code of Maryland, as well as to applicable case law. Specifically, he discusses compensatory, consequential, incidental, punitive, liquidated, reliance, and unjust enrichment damages. In doing so, Mr. Gendron details the types of cases in which parties may recover these damages and under what circumstances.

Reprinted courtesy of Lewis Brisbois

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Sacramento

The Sacramento office is Kahana Feld’s seventh in California, joining offices in San Francisco, Walnut Creek, Irvine, Los Angeles, San Diego, and Carlsbad.

Kahana Feld Opens New Office in Sacramento, Adding Key Litigator and Expanding Northern California Footprint

August 24, 2026 — Kahana Feld

IRVINE, CA – Aug. 11, 2026 – Kahana Feld is pleased to announce the opening of a new office in Sacramento, CA. This will be the firm’s 19th office across the United States. Partner Melvin F. Marcia has joined Kahana Feld and will lead the opening of the Sacramento office. He is joined by attorneys Matthew Brenner and Britney Lucchesi as well as paralegal Michelle Welcker.

“We’re excited to welcome Melvin to the Kahana Feld team and expand our footprint in Northern California,” said Amir Kahana, Firmwide Managing Partner of Kahana Feld. “His addition strengthens Kahana Feld’s capabilities and will allow us to work more closely with our general liability, construction defect, and labor and employment clients in the Sacramento area while continuing to provide the level of service and experience they have come to expect from our firm.”

Reprinted courtesy of Kahana Feld

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Site construction

Discover the potential of AI in construction, focusing on its impact on the Bill of Materials and project outcomes.

We’re Burning Tokens to Clean Up Bad PDFs

August 24, 2026 — Aarni Heiskanen - AEC Business

Last Thursday, researchers from Tampere and Aalto universities reported on preliminary results of two AI- and digitalization-related projects. One project demonstrated how AI can automate the Bill of Materials process; the other tried to quantify the impact of data-driven construction and AI. The conclusion was that AI-powered automation can dramatically increase productivity, but unevenly. However, the substantial benefits may come from better outcomes rather than project efficiency.

Various standards, company-specific practices, project-specific schemas, and traditions are designed for humans to comprehend. 2D drawings and text documents as PDF files, Excel sheets, and design and planning software have the information, but not the data in ideal form for automation.

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

Reprinted courtesy of Aarni Heiskanen, AEC Business

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Tension on fraying rope

Colorado’s construction anti-indemnity statute, C.R.S. § 13-21-111.5(6), raises an interesting question about how that familiar rule operates in construction disputes.

Defend Now, Allocate Later? An Unresolved Tension in Colorado Construction Law

August 16, 2026 — David McLain - Colorado Construction Litigation Blog

For decades, Colorado law has recognized an important distinction between the duty to defend and the duty to indemnify. The former ordinarily arises at the beginning of litigation; the latter generally cannot be determined until the underlying liability is known. That distinction makes intuitive sense. A defense that becomes due only after litigation concludes is not much of a defense.

But Colorado’s construction anti-indemnity statute, C.R.S. § 13-21-111.5(6), raises an interesting question about how that familiar rule operates in construction disputes. The statute expressly regulates contractual obligations not only to indemnify, but also to insure and defend, and it reflects a legislative policy that construction businesses should bear financial responsibility for their own negligence.

Those principles have developed along separate tracks. At some point, a Colorado appellate court may have to decide precisely how they fit together.

Mr. McLain may be contacted at mclain@hhmrlaw.com

Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC

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Signature on document

The best way to avoid these disputes is simple: document the agreement before the work is performed.

The Most Expensive Signature to Not Get: Why Change Orders Matter

August 16, 2026 — Kathryne E. Baldwin - Wilke Fleury

George Bernard Shaw has a quote we use a lot in my family: “The single biggest problem in communication is the illusion that it has taken place.” This is pertinent to contractors and homeowners alike because the cost of failing to get proper signatures on documents like construction contracts, and particularly, change orders, is heavy. Both contractors and homeowners are in the same boat as far as wanting to complete a job as swiftly as possible: contractors go on to their next job and homeowners can return to peace in their home. This is prime territory for either party to suggest the work be completed today and the contract or change order executed tomorrow, or even later. However, without a contract, there is no memorialization of the communication between the parties, which can lead to confusion and missed expectations on both sides.

Construction plans are rarely as neat and tidy as they originally seem to be. A contractor may uncover unforeseen conditions, an owner may request additional work or changes that require additional work, or weather interferes with project schedules or the work itself. Unfortunately, the signature that never gets collected can become one of the most expensive omissions on a project – for both sides.

Ms. Baldwin may be contacted at kbaldwin@wilkefleury.com

Reprinted courtesy of Kathryne E. Baldwin, Wilke Fleury

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Consulting Design and Architecture Expert Witness

Forensic Architect CA, AZ, NV, CO, TX, UT, FL, NM, OK - NCARB - National Council of Architectural Registration Boards

California Architectural Registration Board Supplemental Examination Commissioner

(800) 482-1822

www.berthowe.com

Flood

HUD Seeks to Roll Back and Replace Flood Risk Standards

August 24, 2026 — Esther D'Amico & Pam McFarland - Engineering News-Record

The U.S. Dept. of Housing and Urban Development is accepting comment through Sept. 7 on a proposal to rescind more stringent standards for building and development in flood-prone areas.

Reprinted courtesy of Esther D'Amico, Engineering News-Record and Pam McFarland, Engineering News-Record

Ms. McFarland may be contacted at mcfarlandp@enr.com

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Red arrow going down

Construction Materials Costs Fall With Oil Prices in June

August 24, 2026 — ABC - Construction Executive

WASHINGTON, July 15—Construction input prices decreased 1.1% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices also decreased 1.1% for the month.

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

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Water leak from pipe

Appraisal Appropriate Where Parties Disagree on Amount of Loss Despite Unresolved Coverage Issues

August 24, 2026 — Tred R. Eyerly - Insurance Law Hawaii

The Texas Supreme Court granted mandamus, agreeing that the trial court abused its discretion in denying the insurers’ motion to compel appraisal because of existing coverage issues. In re ACE American Ins. Co., 2026 Tex. LEXIS 411 (Tex. May 8, 2026).

The insured owned, leased and managed commercial properties nationwide. Several insurers collectively insured these properties under various commercial property policies. The insured’s property at issue was a food-distribution warehouse in Dallas.

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

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

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Webinar

Get It On Paper: How Attorneys and Fire Investigators Can Work Together to Craft a Persuasive Report

August 24, 2026 — White and Williams LLP

White and Williams LLP Partners Lian Skaf and Brian Tetro will join fire investigator Robert J. Schaal, IAAI-CFI, for NASP's upcoming webinar, “Get It On Paper: How Attorneys and Fire Investigators Can Work Together to Craft a Persuasive Report.” Taking place on September 3, 2026, from 2:00 p.m. to 3:00 p.m., this webinar will examine how attorneys and fire investigators can collaborate throughout the investigative process to gather, preserve and organize the evidence needed to support successful subrogation recoveries. The presenters will share practical insights on conducting effective investigations, documenting critical findings, and ensuring reports address key legal and technical issues.

September 3rd, 2026
Virtual Event

Reprinted courtesy of White and Williams LLP

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What the Colorado River Crisis Means for the American West

As key rules expire and states fail to reach a long-term deal, the federal government is stepping in with proposed cuts to lower-basin water use, hitting Arizona especially hard. Will the Southwest be able to survive on a shrinking Colorado River? Bloomberg Television reports.

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Dangerous Southern California Heat Wave Could Bring 112-Degree Temperatures

Southern California’s already sweltering temperatures are expected to climb even higher this week, with some areas potentially reaching 112 degrees as a prolonged heat wave tightens its grip on the region. KTLA's Carlos Saucedo reports.

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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

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