New Legislation Requires Changes to your California Home Improvement Contract for 2026
November 18, 2025 —
William L. Porter - Porter Law GroupCalifornia Business and Professions Code 7159, first enacted in 2004, was intended as a consumer protection measure to protect homeowners hiring contractors for home improvement work. The legislation sought to meet this laudable goal by dictating the terms to be used in home improvement contracts. covering everything from mandatory contractual language, lists of documents to be included, legal warnings to be provided, dispute resolution procedures, dictating where to initial, where to sign and even font size.
The legislation unfortunately made it impossible to provide a homeowner with anything more than a complex multi-page legal document which many homeowners viewed with suspicion. The unintended consequence is that those contractors who violate the law and use a short but simple one or two-page, but illegal contract end up obtaining work. Those who follow the law and use the multi-page legally mandated contract end up losing customers because the contract is long, complex and frightening.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Georgia HB 676: A Bill Property Owners and Contractors Should Watch
March 24, 2026 —
Robert Lafayette - The Construction SeytProperty owners, contractors, and others dealing with mechanics and materialmen’s liens in Georgia should keep an eye on
HB 676, which is currently making its way through the Georgia General Assembly. The bill aims to curb misuse of the lien process and provide additional remedies to those challenging a frivolous lien filing.
What HB 676 Would Do
HB 676 would add a new Code section (O.C.G.A. § 44-14-366.6) to the mechanics and materialmen’s lien statutes. If a lien is filed “without substantial justification or that is not made in good faith or that is made with malice or a wrongful purpose,” this new Code section would impose a fine of $1,500 per lien on the lien claimant, in addition to any attorney’s fees or court costs incurred by the party challenging the lien.
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Robert Lafayette, Seyfarth Shaw LLPMr. Lafayette may be contacted at
rlafayette@seyfarth.com
Texas Restricts Foreign Ownership of Real Property
November 09, 2025 —
Anna Luczkow - Lewis Brisbois NewsroomHouston, Tex. (October 9, 2025) - Effective September 1, 2025, certain foreign individuals and entities are no longer able to purchase or acquire an interest in real property in Texas. Governor Abott signed
Senate Bill 17 into law on June 20, 2025, amending
Chapter 5 of the Texas Property Code to add Subchapter H.
The new legislation targets governmental entities of and companies, organizations, and individuals from “designated countries,” which Subchapter H defines as countries that the U.S. Director of National Intelligence identifies as posing a risk to United States national security, or additional countries that the governor designates after determining that the purchase or acquisition poses a risk to national security. Subchapter H initially designates China, Russia, Iran, and North Korea as posing such risk. “Companies” and “organizations” collectively include not only associations, corporations, partnerships, and limited liability companies, but real estate investment trusts, joint ventures, insurance companies, and non-profit organizations.
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Anna Luczkow, Lewis BrisboisMs. Luczkow may be contacted at
Anna.Luczkow@lewisbrisbois.com
Texas Court Revives Construction Defect Claims: Key Lessons for Managing Latent Defect Risk
January 21, 2026 —
Spencer E. Dunn & Melissa Osio Martinez - Wood Smith Henning BermanConstruction projects often involve intricate designs, multiple stakeholders, and complex performance obligations. When problems surface years after completion, parties must navigate a difficult landscape that blends contract law, tort doctrines, and statutory deadlines. A recent decision from the Fourth Court of Appeals of Texas provides meaningful guidance on how courts will evaluate latent construction defect claims, the applicability of the discovery rule, and the limits of the economic loss doctrine. In Morningside Ministries v. Koontz McCombs Construction, Ltd., the court reversed summary judgment entered in favor of the general contractor and project manager, reviving the owner's claims and offering important lessons for owners, contractors, and insurers facing construction defect disputes.
Background of the Dispute
Morningside Ministries operates senior living communities across Texas. In 2012, It contracted with Koontz McCombs Construction, Ltd. (Koontz) to construct The Overlook, a significant expansion of Morningside's Menger Springs campus in Boerne. The contract required Koontz to build 100 new senior living units along with common areas and site improvements, and placed responsibility for construction quality, including the work of subcontractors, on Koontz.
Reprinted courtesy of
Spencer E. Dunn, Wood Smith Henning Berman and
Melissa Osio Martinez, Wood Smith Henning Berman
Mr. Dunn may be contacted at sdunn@wshblaw.com
Ms. Martinez may be contacted at mosiomartinez@wshblaw.com
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New Year’s Resolution: Engineering the “Tee-Up Day” for Complex Construction Mediations
February 17, 2026 —
Joël Bertet - The Dispute ResolverThe construction industry is defined by its commitment to "Critical Path" scheduling. From the moment a project breaks ground, every stakeholder—from the MEP sub to the owner’s rep—is focused on sequencing. We know that you cannot hang drywall before the rough-in is inspected, and you cannot pour a slab-on-grade until the vapor barrier is verified.
Yet, when these projects devolve into litigation, the legal community often abandons the logic of sequencing. We rush headlong into "The Mediation Day"—a high-stakes, expensive, one-day marathon where we expect dozens of parties, hundreds of insurance layers, and thousands of pages of expert reports to magically align into a settlement by 6:00 PM.
As we open our calendars for the new year, it is time for a professional resolution. We must stop treating mediation as a single-day event and start treating it as a managed, sequenced process. The centerpiece of this resolution is the “Tee-Up Day.”
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Joël Bertet, ResolveBertetMr. Bertet may be contacted at
joel@resolvebertet.com
California’s Fair Payment Act: What Every Owner, Developer, and Contractor Should Know About SB 440
November 18, 2025 —
Matthew DeVries - Best Practices Construction LawWhile most states have enacted various forms of prompt payment laws for construction projects, California
Senate Bill 440, known as the
Private Works Change Order Fair Payment Act, marks a pivotal change in how payment obligations related to change orders are handled on private construction projects. Signed into law on
October 10, 2025 by Governor Newsom, its implementation will affect owners, developers, contractors, and subcontractors alike. Importantly, it sets clear standards for processing change-order claims, imposing decisive deadlines and remedies.
The Big Picture
SB 440, effective for private contracts beginning on January 1, 2026, establishes a formal claim resolution process for work stemming from change orders on private projects. Key provisions include:
- A contractor or subcontractor may submit a claim (for a time extension or additional compensation) and the owner must provide a written statement within 30 days identifying disputed and undisputed portions.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Allegations in Insured’s Complaint Sufficient to Survive Motion to Dismiss
November 09, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe insured’s complaint sufficiently pled breach of contract and bad faith to survive the insurer’s motion to dismiss. Macias v. Am. Family Ins. Co., 2025 U.S. Dist. LEXIS 148628 (D. Colo. Aug. 1, 2025).
A hailstorm damaged the insureds’ property, including the roof. The insureds filed a claim (Claim One) with American Family. An adjuster assigned by American Family found storm-related damage to the gutters, window screens and lattice work, but only non-storm-related damage to other items, such as the roof. American Family determined the losses amounted to $1,104.97, which was below the deductible.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
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