Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict
May 26, 2026 —
Gray Development GroupPHOENIX, May 19, 2026 /PRNewswire/ -- A Maricopa County court has entered a $323 million compensatory damages judgment in favor of Gray Development Group against ZOM Holding Inc., doing business as ZOM Living, following a 12-day trial, a unanimous jury verdict and post-trial proceedings related to a proposed business transaction.
The jury found ZOM liable on claims of breach of contract and breach of the implied covenant of good faith and fair dealing stemming from a proposed joint venture tied to a planned pipeline of luxury multifamily and commercial projects in Phoenix and Scottsdale.
The lawsuit centered on a 13-project, $1.4 billion development pipeline originated and planned by Gray Development Group over more than a decade. In 2019, Gray invited Florida-based ZOM to participate in a joint venture involving the completion of five projects, which would have marked ZOM's entry into the Arizona market.
According to court findings presented at trial, the companies entered into a mutual confidentiality and non-circumvention agreement before Gray shared extensive sensitive and proprietary information related to the projects, including planning, market analysis, costs, financial data, local business relationships and operational strategies developed by Gray over decades in Arizona.
Evidence presented during trial showed that over a 10-month period while under contract, ZOM made hundreds of requests for confidential project and market information before circumventing Gray and pursuing the projects independently, ultimately displacing Gray from projects it spent years planning and developing.
ZOM Living, headquartered in Orlando, develops multifamily and senior housing communities across the United States and operates regional offices in Boston, Dallas, Fort Lauderdale, Nashville, Phoenix, and Raleigh. ZOM is owned by Timeless Investments, the Amsterdam-based family office of Dutch businessman Hans van Veggel, which acquired the company in 1997.
About Gray Development Group
Gray Development Group was founded by architect Bruce Gray in 1991. The Phoenix-based company was the top-ranked multifamily developer in Arizona for more than a decade. The company designed and developed more than 15,000 apartment and condominium units throughout metropolitan Phoenix. Two Gray-designed developments — a Tempe midrise and a San Diego high-rise — received National Apartment Community of the Year awards.
Your Construction Contract Won’t Always Save You From a Bad Project Record
November 02, 2026 —
Matthew J. Devries - Best Practices Construction Law BlogConstruction contracts are full of protections. No-damage-for-delay clauses. Consequential damage waivers. Rights to supplement a subcontractor’s work. Broad scheduling provisions. But a recent Tennessee construction case provides an important reminder: the best contract in the world may not save you from bad project facts.
In Commercial Painting Company, Inc. v. The Weitz Company, LLC (TN Ct. App. Oct. 28, 2026), the dispute involved a general contractor and its drywall subcontractor on a multi-building retirement community. The subcontract was originally worth more than $3.2 million, and the parties eventually disagreed about delays, scheduling, supplemental work, backcharges, and unpaid applications for payment. What began as a fairly typical construction dispute became anything but typical. A jury ultimately found that the general contractor had intentionally misrepresented material facts and awarded the subcontractor $3.9 million in punitive damages. (The case has a lengthy procedural history involving multiple appeals, but this post focuses only on the practical lessons from the most recent decision.)
Read the full story...Reprinted courtesy of
Matthew J. Devries, BuchalterMr. Devries may be contacted at
mdevries@buchalter.com
Real Estate & Construction News Roundup (7/15/26) – The World Cup’s Effect on Commercial Real Estate, Megadeals Lift CRE Sales and Algorithmic Pricing Lawsuits Continue
July 27, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, DOT earmarks $1.73B in BUILD grants, federal housing bill becomes law, data center surge cools off, and more!
- Data center planning cooled off month over month from “extraordinary levels” to start the summer, while other areas of construction finally picked up a little steam. (Sebastian Obando, Construction Dive)
- The U.S. Department of Transportation announced $1.73 billion in 2026 BUILD grants covering 127 projects across 50 states, Washington, D.C., American Samoa, Guam and Puerto Rico. (Joe Bousquin, Construction Dive)
- As algorithmic pricing lawsuits continue to play out around the country, more apartment owners and managers have settled. (Julie Strupp, Multifamily Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Consider The Limited Warranty from Your Homebuilder
July 06, 2026 —
David Adelstein - Florida Construction Legal UpdatesWhen purchasing a home from a homebuilder, there is an important consideration when it comes to the limited warranty you receive around the time you close on the home. That limited warranty likely includes an arbitration provision requiring you to arbitrate your disputes, such as construction defect claims, against the homebuilder. That arbitration provision will most likely include all claims, including statutory claims (such as a statutory violation of a building code claim), requiring you to arbitrate, as opposed to litigate, your disputes against the homebuilder. This is an important consideration. If the arbitration provision does not allow you to arbitrate all of your claims, and eliminates your rights to legitimate statutory claims, the arbitration provision could be unenforceable.
By way of example, in a residential construction defect dispute, Anderson v. Taylor Morrison of Florida, Inc., 223 So.3d 1088 (Fla. 2d DCA 2017), the appeal turned on whether the arbitration provision in the homebuilder’s limited warranty was valid. The homeowners took possession of their home in 2009. In 2015, the homeowners served a Florida Statutes Chapter 558 notice of construction defects that included a statutory violation of a building code claim under Florida Statute §553.84. The limited warranty included an arbitration provision that specified it was the “exclusive remedy” for all disputes arising out of or related to the warranty or issues with the home and property. When read together with the warranty’s disclaimer that precluded claims not covered by the warranty “whether in contract, tort, or otherwise,” the statutory building code violation claim could not be remedied through arbitration because it fell outside the warranty’s coverage.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.
The Great Escape: Non-Invalidation Clauses and Property Damage Claims
October 20, 2026 —
Abigail Smith & Kaarthiga Manimaran - SDV FenchurchAt their core, non-invalidation clauses (“NICs”) recognise an important commercial reality: an insured cannot control everything that happens at its premises.
In the event that an insured finds itself in breach of a condition or warranty owing to events that have increased the risk of damage to its property, but which were outside its authority, knowledge or beyond its control, a NIC may prevent the insurer from avoiding the claim. For that reason, they’re an important tool in an insured’s coverage arsenal.
Although there is relatively little caselaw on NICs, their purpose was recognised in The Seashell of Lisson Grove Ltd v Aviva Insurance Ltd [2011] EWHC 1761 (Comm) (on which we wrote a previous article –
The Good, the Bad & the Ugly: #26 The Good: The Seashell of Lisson Grove Ltd v Aviva)
Reprinted courtesy of
Abigail Smith, SDV Fenchurch and
Kaarthiga Manimaran, SDV Fenchurch
Ms. Smith may be contacted at abigail.smith@sdvfenchurch.uk
Ms. Manimaran may be contacted at kaarthiga.manimaran@sdvfenchurch.uk
Read the full story...
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 & WilmerDevelopers 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 & WilmerMr. Regula may be contacted at
rregula@swlaw.com
"Resilient Rebuild Hub" Helps Wildfire-Impacted Homeowners Build Back Stronger
September 21, 2026 —
California Nevada Cement AssociationNEWPORT BEACH, Calif., Sept. 21, 2026 /PRNewswire/ -- When homeowners in a fire-ravaged Pacific Palisades neighborhood banded together last year to rebuild with fire-hardened materials rather than standard wood framing, they weren't just rebuilding houses: they were rewriting the playbook for how California communities can rebuild after wildfire. Today, the Building with Resilience effort is making that playbook available to every homeowner facing the same decision with the launch of its new Resilient Rebuild Hub for exploring fire resistant, non-combustible construction options.
The Resilient Rebuild Hub helps homeowners understand options for fire-resistant, concrete-based construction and connect with architects, engineers, and contractors who can build them. This includes six noncombustible building systems:
- Insulated Concrete Forms (ICF): stackable, high-density foam blocks filled with concrete which save 20-50% on monthly heating and cooling costs, reduce outside noise by up to 80%, offer exceptional earthquake performance and 4-hour fire resistance rating.
- Insulated Composite Concrete Forms (ICCF): similar formwork to ICF construction with composite materials that enhance strength, simplify installation, and improve long-term performance.
- Concrete Masonry: strong, durable wall systems used for decades across California and the U.S.
- Precast Insulated Sandwich Panels: a complete building enclosure system consisting of two layers of concrete separated by a continuous layer of rigid insulation.
- 3D Shotcrete: air-sprayed concrete for strong, fast, and versatile wall systems that enable a high degree of artistic freedom together with unparalleled fire resistance.
- 3D Concrete Printing: the cutting edge of residential construction, a large-scale robotic 3D printer "squeezes" a specialized concrete mixture layer by layer to allow for organic, curved designs that are often too expensive or impossible to build with traditional methods.
The Resilient Rebuild Hub is available now at buildingwithresilience.com/how-to-build. Each part is free to access and includes case studies, technical resources, and a directory of architects, engineers, and contractors experienced in each building method.
CNCA is a not-for-profit organization committed to developing sustainable and economical construction solutions for California and Nevada with an emphasis on the use of cement and concrete. For more information, visit www.cncement.org.
CalCIMA is a trade association for the construction and essential mineral industries in California, including aggregate, essential and rare earth minerals, ready mixed concrete, and asphalt producers. In all, there are about 70 producer member companies that include 500 production sites in every county of California. Our members also include more than 100 suppliers and service providers to the industry.
Founded in 1930, the National Ready Mixed Concrete Association (NRMCA) is the leading industry advocate with a mission to provide exceptional value for our members by responsibly representing and serving the entire ready mixed concrete industry through leadership, promotion, education and partnering to ensure ready mixed concrete is the building material of choice.
