CadMonkey,

You are correct, the logic for the system to accurately determine the overlap would be certainly more complicated than just for two line segments, hence why it is this way. Definitely something we could consider if you want to start thinking about, and share with us what that logic might look like!

Jake,

That would definitely make the logic more tricky. At first glance I'd say the code could include a check for the radius of the arc segment that is intersecting a lateral line segment; maybe something to make it ignore any radius that is larger/greater than the arc segment that makes up a pipe hop, but that probably wouldn't work for two arc segments that intersect. Also, there's probably issues that would come up based on scale and/or units since a check like that would probably need some kind of value to look for and it wouldn't be feasible to include every possible scale. 

I really wouldn't have noticed the "bug" if I hadn't been messing around with using the arc option for laterals. I'll give it some more thinking time but I think the logic works great the way it is right now. Judging from the lack of interest on this post, I assume that very few people are using arcs for laterals anyway. 

-CadMonkey