{"id":904147,"date":"2025-03-27T15:44:55","date_gmt":"2025-03-27T21:44:55","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904147"},"modified":"2025-03-27T15:44:58","modified_gmt":"2025-03-27T21:44:58","slug":"construction-defect-lawsuits-likely-to-rise","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-defect-lawsuits-likely-to-rise\/","title":{"rendered":"Alert for Contractors, Builders Insurers: Construction Defect Lawsuits Likely to Rise"},"content":{"rendered":"\n

Claims Journal<\/a><\/p>\n\n\n\n

A new report identifying commercial litigation waves likely to pick up steam in 2025 highlights one particular theme that could further lengthen the tail of general liability claims for insurers writing policies for contractors and builders.<\/p>\n\n\n\n

The 2025 \u201cCommercial Litigation Outlook<\/a>,\u201c<\/em>\u00a0published by the law firm Seyfarth Shaw provides an annual look at the legal landscape in multiple areas, including Gen AI, privacy, healthcare, cannabis, intellectual property, securities, consumer protection and class actions, real estate, and antitrust, among others.<\/p>\n\n\n\n

In the real estate section of the report, the firm notes the disputes over defective construction<\/a> are likely to increase in 2025.<\/p>\n\n\n\n

While the report describes construction defect litigation as \u201cevergreen,\u201d several factors could spur more of it, including the focus of President Trump\u2019s administration on immigration.<\/p>\n\n\n\n

Construction defect litigation rises in years following shortages of skilled labor\u2014and that\u2019s been in short supply in the construction industry for most of the last decade, the report states, also noting that 30-40 percent of all construction workers in the U .S . are immigrants, \u201cwith an undetermined number who are undocumented.\u201d (Editor\u2019s Note: The\u00a0National Association of Home Builders<\/a>\u00a0offers similar figures on its website.)<\/p>\n\n\n\n

The construction labor shortage has hovered around half-a-million workers since 2023, the report says.<\/p>\n\n\n\n

The Seyfarth Shaw lawyers also pointed to the high demand for rebuilding in areas that have been impacted by recent hurricanes and wildfires as another factor that could fuel future construction defect litigation. In California, the urgent need to replace housing has has already resulted\u00a0in loosening or elimination of certain requirements for rebuilding<\/a>, which in turn may increase the risk of defective construction.<\/p>\n\n\n\n

Noting that defect claims tend to have a one to three-year lag time, claims could show up in 2025 and beyond.<\/p>\n\n\n\n

Throughout much of the report, authors refer to actions by the current administration that may be changing the legal landscape in various areas\u2014for example, shifting some types of actions to state courts.<\/p>\n\n\n\n

\u201cFederal ESG litigation has, for the moment, had its day,\u201d the firm said in a media statement. \u201cSEC greenhouse emissions rules announced just a year ago will probably gather dust, meaning individual states are set to become the favored fora for ESG-related allegations, such as corporate greenwashing.\u201d<\/p>\n\n\n\n

The report writers also expect consumer fraud class actions based on testing for alleged harmful substances like PFAS and heavy metals, again highlighting state-specific regulations that could spur litigation.<\/p>\n\n\n\n

\u201cBusinesses selling consumer products in California should be aware of the state\u2019s specific regulation of PFAS-containing products, including new requirements effective in 2025. Current laws already prohibit or require labeling and disclosures for certain PFAS-containing items, such as children\u2019s products and cookware. Starting in 2025, these regulations will expand to cover more products, including textiles, clothing, and cosmetics,\u201d the report says. \u201cGiven growing concerns over PFAS exposures, businesses will need to ensure that their products fully comply with all state and federal PFAS regulations, including upcoming California requirements.\u201d<\/p>\n\n\n\n

Whether at the federal or state level, consumer fraud lawsuits around PFAS and other substances allege two main theories of deception\u2014that product claims of being \u201cpure\u201d and \u201corganic\u201d were false based on the presence of the substance, or simply that defendants failed to disclose the presence of the substance in its product.<\/p>\n\n\n\n

While shining light on potential consumer actions alleging harmful substances in products and greenwashing actions against companies that tout high ESG standards, the Seyfarth Shaw report does not specifically flag the trajectory of PFAS-contaminated drinking water litigation.<\/em><\/p>\n\n\n\n

National media reports published yesterday indicated that the Trump administration was launching a sweeping overhaul of U.S. environmental mandates and states would take up the mantle of setting maximum contamination levels for PFAS chemicals.<\/em><\/p>\n\n\n\n