The Morganti Group, Inc. v. Zurich American Ins. Co.
- Lewis Liman
- 1:25-cv-03924
- U.S. District Court · Southern District of New York
- 3
In The Morganti Group v. Zurich, Judge Liman granted the parties’ request to stay the insurance case while related state-court settlement discussions continue.
The stay affects Morganti and Zurich in the federal insurance case while settlement discussions continue in the related state-court action involving J&A Concrete Corp.
What happened
The Morganti Group, Inc. v. Zurich American Ins. Co. is an insurance dispute arising from property damage during a construction project. Morganti sought $2.6 million from Zurich under a builder’s risk policy after Zurich denied its claim.
Morganti and Zurich agreed in principle to a settlement framework, but a related state-court case brought by Morganti’s subcontractor, J&A Concrete Corp., involved the same loss and insurance policy. The parties said resolving J&A’s claim could fully resolve the federal case.
Judge Lewis Liman granted the request to stay The Morganti Group, Inc. v. Zurich American Ins. Co. so the parties could continue settlement discussions in the related state-court action. The order did not decide the insurance coverage dispute.
The detailed version
- The Morganti Group, Inc. v. Zurich American Ins. Co. · No. 1:25-cv-03924
- Lewis Liman
- Nov. 25, 2025
Background
The Morganti Group, Inc. brought an insurance coverage action against Zurich American Insurance Co. arising from a construction project known as PS 138X (Bronx). Morganti was the prime contractor, and J&A Concrete Corp. was its subcontractor. Zurich furnished an owner-controlled insurance program that included first-party builder’s risk property insurance. The opinion states that Morganti was an additional insured under the policy and that J&A contended it also was an additional insured.
On July 7, 2023, J&A’s pouring of a concrete slab at the project’s roof level resulted in property damage. Morganti submitted a claim to Zurich under the builder’s risk policy, including a claim passed through from J&A. Zurich denied the claim based on what it contended was a policy exclusion. Morganti then commenced this action on May 12, 2025, seeking $2.6 million in damages.
Request for a Stay
Morganti asked the court to pause the federal case with Zurich’s consent. The request was based on a related action in Bronx County Supreme Court, Index No. 813988/2025E, brought by J&A against Morganti and Zurich. That action arose from the same loss and insurance policy, and J&A’s claim was included within Morganti’s claim in the federal case. The state-court action also included other claims and counterclaims arising from the subcontract between Morganti and J&A.
Morganti and Zurich had agreed in principle to a settlement framework, while Morganti and J&A were negotiating a settlement and working toward mediation. The parties believed that settling J&A’s claim could fully resolve the federal action. Morganti alternatively requested a second 90-day extension of the scheduling order if the court declined to stay the case.
Ruling
Judge Lewis Liman granted the request for a stay. The order was entered on November 25, 2025, after the parties jointly requested the stay. The order did not rule on the insurance coverage issue, Zurich’s asserted policy exclusion, or the merits of Morganti’s damages claim. It also did not state a separate disposition of the alternative request for a scheduling-order extension.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.