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DIRECTORY AND CAPABILITIES

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.” Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Insured’s Failure to Determine Depreciation When Presenting Claim for Replacement Cost Value

August 16, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The Third Circuit affirmed the district court’s granting of summary judgment to the insurer when the insured submitted replacement cost value of the loss but did not include a determination of depreciation. Kimmel v. Massachusetts Bay Ins. Co., 2026 U.S. App. LEXIS 16569 (3d Cir. June 9, 2026). A lightning strike downed a tree on the insured’s property, causing extensive damage to the home. The insured had a homeowner’s policy with Massachusetts Bay Insurance Company (MBIC). MBIC denied the claim, determining that much of the claimed damage already existed and that several policy exclusions otherwise barred coverage. The insured filed suit for breach of contract and bad faith. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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The “Pay When Paid” Clause in California Construction—Strategies as the Battle Continues

August 03, 2026 — William L. Porter - Porter Law Group
It is well known in California Construction circles that the “Pay If Paid” clause is illegal in this state. There is a great distinction, though, between this clause and a similar clause, known as a “Pay When Paid” clause. A pay if paid clause allows a contractor to tell a subcontractor that if the contractor is unpaid for the subcontractor’s work, then the contractor has no legal obligation to pay the subcontractor, ever. For a great variety of reasons, the California Supreme Court, in the case of Wm. R. Clarke Corp v. Safeco Ins. Co. of America (1997) 15 Cal.4th 882, declared this type of clause illegal in California Construction. Although the pay if paid clause is illegal in California, the pay when paid clause is still perfectly legal and is found in many subcontracts that contractors issue to their subcontractors. The pay when paid clause allows a contractor to delay paying its subcontractors until the dispute between the contractor and the property owner over payment has been resolved and the contractor is paid by the property owner. Although seemingly reasonable (since it merely delays payment until the contractor is paid by the owner, thereby providing a funding source to pay subcontractors), significant problems still arise. Read the full story...
Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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Insureds’ Altering Dates for Hailstorm Damage Justifies Denial of Claim

June 02, 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. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Construction Companies Are Nearly Seven Times Safer With These Best Practices

June 15, 2026 — ABC - Construction Executive
WASHINGTON, May 4—Associated Builders and Contractors released its 2026 Health and Safety Performance Report, an annual guide to health and safety best practices on construction jobsites. The 2026 report shows the positive effects of participating in ABC’s STEP® Health and Safety Management System, which enables top-performing ABC members to achieve incident rates 686% safer than the U.S. Bureau of Labor Statistics construction industry average, reducing total recordable incident rates by 85%. Established in 1989, STEP is a proven system that provides contractors and suppliers with a robust, no-cost framework for measuring health and safety data and benchmarking with peers in the industry. This self-assessment tool helps participants identify real opportunities for scalable growth in their health and safety programs to lower their total recordable incident rates and become an employer of choice in a competitive labor market. Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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4th Department Narrowly Interprets Professional Services

August 11, 2026 — Craig Rokuson - Traub Lieberman
In the recent case of Cty. of Erie v. Selective Ins. Co. of Am., 2026 NY Slip Op 04092 (App. Div. 4th Dept.), New York’s Appellate Division, Fourth Department held that a general liability carrier for a construction manager owed additional insured coverage to the County of Erie, notwithstanding an exclusion in the construction manager’s policy for injuries arising out of professional services. The underlying case involved injuries sustained when the underlying plaintiff fell off of her bicycle at a park owned by the County when she transitioned from the pavement edge to grass. Read the full story...
Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

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Endorsement is Void Where Compliance is Impossible

September 21, 2026 — Tred R. Eyerly - Insurance Law Hawaii
The Sixth Circuit found that the insured’s loss of property due to fire was covered despite noncompliance with an endorsement requiring encompassing the property. 3371 Reading, LLC v. Liberty Mut Group, Inc., et al., 2026 U.S. App. LEXIS 19156 (6th Cir. June 29, 2026). The insured, 3371 Reading, owned a building undergoing renovation. After the structure burned down, 3371 Reading made a claim under its policy with Ohio Casualty Insurance Company. Ohio Casualty relied on an endorsement requiring fencing round the jobsite. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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

June 02, 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. Read the full story...
Reprinted courtesy of Ryan J. Regula, Snell & Wilmer
Mr. Regula may be contacted at rregula@swlaw.com

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