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Seventh Circuit Finds “Additional Insured” Requirements Met Where Non-Party Subcontractor Was Proximate Cause of Underlying Injuries

February 23, 2026 — Jason Taylor - Traub Lieberman Insurance Law Blog
In Atlanta Gas Light Company et al v. Navigators Ins. Co., Nos. 24-2888 & 24-2889 (7th Cir. Jan. 22, 2026), the Seventh Circuit Court of Appeals assessed whether an upstream contractor was an “additional insured” under an umbrella policy issued to its subcontractor. Atlanta Gas and Southern Company Gas (“AGL”) hired United States Infrastructure Corporation (“USIC”) to locate and mark gas lines that AGL owned throughout Georgia. In 2018, USIC failed to mark a gas line in Homerville, Georgia, and a boring company struck it, leading to an explosion that severely injured three women. The victims settled their claims with USIC but did not come to terms with AGL. AGL eventually did settle with the victims, but only after they sued AGL in Georgia state court (the “Underlying Suits”). AGL’s service agreement with USIC required USIC to obtain primary and excess liability insurance coverage that included AGL as an additional insured. Because USIC’s settlement with the victims exhausted its primary policy, AGL tendered the defense and indemnification of the Underlying Suits to USIC’s excess insurer, Navigators. Navigators denied the request on the ground that AGL was not an “additional insured” under the policy. Read the full story...
Reprinted courtesy of Jason Taylor, Traub Lieberman
Mr. Taylor may be contacted at jtaylor@tlsslaw.com

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When “Normal Cracking” Isn’t So Normal: Parra v. Gillaspie Construction and the Two-Year Clock on Construction Defect Claims

November 18, 2025 — David McLain - Colorado Construction Litigation Blog
In Michelle and Michael Parra v. Gillaspie Construction, Inc. and Johnson Excavation, Inc. (Colo. App. No. 18CA0800, Mar. 21, 2019), not selected for official publication, the Colorado Court of Appeals reaffirmed an essential principle for builders, homeowners, and insurers alike: under the Colorado Construction Defect Action Reform Act (“CDARA”), the statute of limitations begins to run when a homeowner first observes physical manifestations of a defect, not when the homeowner later learns what caused those problems or concludes they are “excessive.” The case underscores how critical it is to identify, document, and evaluate early signs of construction distress, because waiting for confirmation of a defect can mean the difference between a viable claim and one that is time-barred. Background: Cracks, Gaps, and Growing Concern The Parras hired Gillaspie Construction and Johnson Excavation to build a custom home in Routt County. They moved in January 2010. Within the first year, they noticed cracks in walls, a kitchen backsplash pulling away, and flooring that was “[c]upping and gapping.” By 2013, additional cracking appeared in the office and hallway, gaps opened around the fireplace and hearth, and certain cabinet doors began to misalign. Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Four Payne & Fears Attorneys Named 2026 Southern California Super Lawyers Rising Stars

March 17, 2026 — Payne & Fears
We congratulate our four Payne & Fears attorneys who have been named 2026 Southern California Super Lawyers Rising Stars. This recognition highlights the next generation of legal talent, honoring attorneys who have made a strong impact in their practice areas early in their careers. Employment & Labor Taylor Brown Bree Oswald Employment Litigation: Defense Tyler Runge Business Litigation Brian Shaw Read the full story...
Reprinted courtesy of Payne & Fears

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Modular Construction’s Big Boom: New Risks Outpacing Standard Contracts in Industrial Projects

March 24, 2026 — Chad Theriot & Jack Mayo - Construction Executive
Modular construction is revolutionizing the construction industry, tackling labor shortages, sustainability goals and supply-chain challenges, with the global market for modular and prefabricated construction projected to reach over $200 billion by 2030. While residential builders have embraced modular’s speed and affordability, the greatest risks—and opportunities—are emerging in the industrial sector, where project scale and complexity demand new legal strategies. In 2023, Chad Theriot explored industrial and infrastructure applications of modular construction, addressing risks like offsite fabrication and integration complexities in his article, “The Rise of Modular Construction—Impacts for Consideration.” Since that time, modular construction has continued to experience significant advancements and has been increasingly adopted by contractors across a broad spectrum of industrial and commercial projects. As modular construction continues to reshape the industrial landscape, contractors and owners alike must be mindful of the legal implications associated with its use, specifically as it relates to liability and risk allocation, regulatory compliance, quality control and upstream factors such as transportation and intellectual property concerns. Reprinted courtesy of Chad Theriot and Jack Mayo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Navigating Turbulent Waters Ashore: Insurance Lessons from a Navy Project Dispute

February 02, 2026 — Cary D. Steklof & Torrye Zullo - Hunton Insurance Recovery Blog
As we ring in the New Year, one thing remains the same: understanding the definitions and conditions in your insurance policy is critical. In a recent decision, a Florida federal court in Ohio Security Insurance Co. v. E Kelly Enterprises Inc. et al., No. 3:22-cv-24754, held that an insurer had no duty to defend or indemnify a general contractor and no duty to indemnify a subcontractor for damages from defective work on a naval base, based on the policy’s definition of “suit,” “property damage,” and allocation requirements. The decision highlights the importance of numerous issues in the context of commercial general liability policies, including the nuances of policy definitions, obtaining insurer consent when necessary, and allocation between covered and uncovered claims. Background In October 2014, a general contractor (“GC”) was awarded a contract by the Navy to renovate buildings at the Naval Air Station in Pensacola. The GC subcontracted work to various subcontractors, including metal framing and drywall, to a subcontractor named EKE. Reprinted courtesy of Cary D. Steklof, Hunton Andrews Kurth LLP and Torrye Zullo, Hunton Andrews Kurth LLP Mr. Steklof may be contacted at csteklof@hunton.com Ms. Zullo may be contacted at tzullo@hunton.com Read the full story...

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Cross-Office Team Secures Litigation Stay and Order of Arbitration on Behalf of Hotel Developer

February 17, 2026 — Lewis Brisbois Newsroom
New York Partner Minyao Wang, Chicago Partner Bryan Sugar, and Denver/Washington, D.C. Partner Christopher Wood secured a victory on behalf of Lewis Brisbois’ client, a hotel developer, when the Circuit Court of Cook County, Illinois granted the client’s motion to dismiss and ordered the parties to proceed to arbitration. In this matter, the 39 plaintiffs, represented by a New York based law firm that focuses on EB-5 litigation against high-end real estate developers, were foreign nationals living in China or Taiwan who were seeking EB-5 visas and invested in a lending company. The lending company loaned money to entities that were managing a project that involved renovating a hotel and constructing a mixed-use tower in downtown Chicago. Disputes developed among the parties. The foreign investors organized informally and ultimately filed suit against Lewis Brisbois’ client, alleging claims of breach of fiduciary duty, breach of contract, conversion, and conspiracy, as well as aiding and abetting conversion. The defendants faced exposure of at least $20 million. Read the full story...
Reprinted courtesy of Lewis Brisbois

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Florida’s Proposed HB 255: A Quiet Shift That Could Reshape Condo Defect Liability

January 21, 2026 — Matt Maranges - ConsensusDocs
In Florida, developers and contractors work under strict clocks. Section 95.11(3)(b), Florida Statutes, sets two firm deadlines for construction claims: a four-year statute of limitations and a seven-year statute of repose. Those timelines govern when an owner or condominium association may pursue claims for alleged defects. Once the repose period ends, the claim is barred regardless of when the problem surfaced. Condominium law complicates that scheme. Section 718.124 delays the start of the limitation and repose periods on association claims until control of the board shifts from the developer to the unit owners. The logic is simple: a developer-controlled board cannot be expected to sue the developer. The practical effect is more sweeping. If turnover occurs late in the life of a project, the repose period may remain tolled for years, extending exposure far beyond the seven years that apply everywhere else. Read the full story...
Reprinted courtesy of Matt Maranges, Jones Walker
Mr. Maranges may be contacted at mmaranges@joneswalker.com

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Fixed Price, Fluid Quantities: The Hidden Risks in Lump Sum Agreements with Variable Units

November 21, 2025 — Virginia Trunkes - Construction Law Zone
Lump sum construction agreements are the most basic of the different design-bid-build options: the contractor agrees to complete the entire scope of work for a fixed price, and assumes most of the quantity and cost risks. If the contractor’s actual costs exceed its estimates, the contractor absorbs the loss. Adding a clause into the construction agreement that allows unit quantities to increase or decrease based on actual job quantities creates a mechanism that can reduce the risk of estimating, but it is a clause that should be carefully drafted and closely guarded. There are times when it makes sense for parties to deviate from their lump sum agreement and allow for greater flexibility: when there are uncertainties in site conditions or scope, and/or to reduce disputes over changed conditions. The parties can introduce elements of unit-price contracts into the lump sum framework, either choosing to shift the risk entirely to one party or the other, or sharing the risk, e.g., by including an equitable adjustment clause that allows for a price adjustment if the variation exceeds a certain threshold. Even with that balance, incorporating opportunities for adjustments can favor more than just the contractor: it creates a disincentive for the contractor to inflate unit prices to hedge against quantity risks. Read the full story...
Reprinted courtesy of Virginia Trunkes, Robinson & Cole
Ms. Trunkes may be contacted at vtrunkes@rc.com

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