Apr 20, 2026 1 SEAN F. MCAVOY, CLERK 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 EASTERN DISTRICT OF WASHINGTON 8 ENVIRONMENT CONTROL 9 No. 2:25-CV-00070-ACE RESTORATION SERVICES, INC.,
10 an Idaho corporation, as an assignee ORDER GRANTING DEFENDANT’S of RYAN EHRMANTROUT and 11 MOTION FOR SUMMARY JUDGMENT EMILY SHICK,
12 ECF No. 16 13 Plaintiff,
14 v. 15 STATE FARM FIRE AND 16 CASUALTY COMPANY, an 17 Illinois company,
18 Defendant. 19 20 BEFORE THE COURT is Defendant’s motion for summary judgment. 21 ECF No. 16. Plaintiff is represented by attorney Gregory Michael George. 22 Defendant is represented by attorneys John B. McDonald and Ryan J. 23 Hesselgesser. Having reviewed the pleadings and the file, the Court is fully 24 informed and herein grants Defendant’s motion for summary judgment. 25 LEGAL STANDARD 26 Federal Rule of Civil Procedure 56(a) states that a party is entitled to 27 summary judgment in its favor if “the movant shows that there is no genuine 28 dispute as to any material fact and the movant is entitled to judgment as a matter of 1 law.” See Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). A fact is “material” 2 if it might affect the outcome of the suit under the governing law. See Anderson v. 3 Liberty Lobby, Inc., 477 U.S. 242, 248-249 (1986). A dispute is “genuine” as to a 4 material fact if there is sufficient evidence for a reasonable jury to return a verdict 5 for the nonmoving party. Id. at 248. 6 Once the moving party has carried the burden under Rule 56, the party 7 opposing the motion must do more than simply show there is “some metaphysical 8 doubt” as to the material facts. Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio 9 Corp., 475 U.S. 574, 586 (1986). The party opposing the motion must present 10 facts in evidentiary form and cannot rest merely on the pleadings. Anderson, 477 11 U.S. at 248. Genuine issues are not raised by mere conclusory or speculative 12 allegations. Lujan v. Nat’l Wildlife Fed’n, 497 U.S. 871, 888 (1990). 13 The Supreme Court has ruled that Federal Rule of Civil Procedure 56(c) 14 requires entry of summary judgment “against a party who fails to make a showing 15 sufficient to establish the existence of an element essential to that party’s case, and 16 on which that party will bear the burden of proof at trial.” Celotex, 477 U.S. at 17 322. “A complete failure of proof concerning an essential element of the 18 nonmoving party’s case necessarily renders all other facts immaterial.” Id. at 323. 19 Therefore, the question on summary judgment is “whether the evidence is so one- 20 sided that one party must prevail as a matter of law.” Anderson, 477 U.S. at 251- 21 252. Where there is no evidence on which a jury could reasonably find for the 22 nonmoving party, summary judgment is appropriate. Id. at 252. 23 BACKGROUND 24 State Farm Fire and Casualty Company (“State Farm” or “Defendant”) 25 issued a homeowner’s insurance policy to Ryan Ehrmantrout and Emily Shick 26 (“the insured”) effective June 15, 2024 to June 15, 2025. During this period, the 27 insured suffered damage to their home as a result of a refrigerator supply line 28 releasing water beneath their kitchen flooring. 1 After the water loss was discovered, Ms. Shick retained the services of 2 Environment Control Restoration Services, Inc. (“ECRS” or “Plaintiff”). On or
3 about July 1, 2024, and prior to State Farm being informed of a water loss claim, 4 ECRS entered into an “ASSIGNEMENT [sic] OF BENEFITS AND DIRECTION 5 TO PAY” with Ms. Shick and was on site as early as 11:23 a.m. that day. State 6 Farm received notice of the water loss at 2:32 p.m. on July 1, 2024. 7 ECRS did not complete its work at the residence until July 17, 2024, and did 8 not send an invoice to Ms. Shick until July 29, 2024. State Farm paid undisputed 9 amounts to the insureds for the mitigation and asbestos abatement work. ECRS 10 thereafter sent an IFCA notice claiming to be a first party claimant under IFCA 11 pursuant to the assignment agreement. This lawsuit was filed on January 10, 2025, 12 and removed to this Court on February 26, 2025. 13 On January 5, 2026, Defendant filed the instant motion for summary 14 judgment. ECF No. 16. Defendant argues the assignment between the insured and 15 ECRS violates the anti-assignment provisions of the insurance policy and ECRS 16 has no standing to assert extra-contractual rights. Id. Plaintiff’s response asserts 17 the assignment is valid and enforceable under Washington law and, by the 18 assignment, the insureds transferred their right to sue Defendant for recovery, 19 including IFCA and CPA claims. ECF No. 20. 20 DISCUSSION 21 A. Validity of Attempted Assignment 22 Defendant argues ECRS does not have a valid assignment from the insured 23 because it violates the anti-assignment provisions of the insurance policy.1 ECRS 24 contends the assignment is valid and enforceable under Washington law. Absent a 25
26 1State Farm’s insurance policy to the insured contains anti-assignment 27 clauses that prohibit the assignment of the policy or rights under the policy unless 28 State Farm gives express written consent. 1 valid assignment, ECRS has no standing to assert the claims presented in this 2 lawsuit. 3 Insurance policies are regarded as personal contracts and cannot be assigned 4 where an assignment is expressly prohibited by the terms of the policy, unless the 5 insurer consents. However, when an assignment is made by an insured after the 6 liability-causing event has occurred, the assignment is not of the policy itself, but 7 of a claim under, or a right of action on, the policy. Washington case law2 8 provides that “[a]fter a loss has occurred and rights under the policy have accrued, 9 an assignment may be made without the consent of the insurer, even though the 10 policy prohibits assignments.” Kiecker v. Pacific Indem. Co., 5 Wash.App. 871, 11 877, 491 P.2d 244 (1971) (emphasis added); see Public Utility Dist. No. 1 of 12 Klickitat Cty. v. Intern’l Ins. Co., 124 Wash.2d 789, 801 (1994) (“[T]he great 13 weight of authority supports the rule that general stipulations in policies 14 prohibiting assignments thereof except with the consent of the insurer apply to 15 assignments before loss only, and do not prevent an assignment after loss[.]”); see 16 also B.S.B. Diversified Co. v. Am. Motorists Ins. Co., 947 F. Supp. 1476, 1479 17 (W.D. Wash. 1996) (“Washington law recognizes an assignment of coverage for 18 an event or activities preceding assignment.”). Therefore, the rule in Washington 19 is that anti-assignment clauses apply to prohibit only an assignment before a loss, 20 and do not prevent an assignment after a loss. The rationale for this distinction is 21 that “[t]he purpose of a no-assignment clause in an insurance contract is to protect 22 the insurer from increased liability. After the events giving rise to the insurer’s 23 liability have occurred, the insurer’s risk cannot be increased by a change in the 24 insured’s identity.” PUD No. 1, 124 Wash.2d at 881; see Sherard v. Safeco Ins. 25
26 2This Court, sitting in diversity, must apply the substantive law of the forum 27 state. Erie R.R. Co. v.
Free access — add to your briefcase to read the full text and ask questions with AI
Apr 20, 2026 1 SEAN F. MCAVOY, CLERK 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 EASTERN DISTRICT OF WASHINGTON 8 ENVIRONMENT CONTROL 9 No. 2:25-CV-00070-ACE RESTORATION SERVICES, INC.,
10 an Idaho corporation, as an assignee ORDER GRANTING DEFENDANT’S of RYAN EHRMANTROUT and 11 MOTION FOR SUMMARY JUDGMENT EMILY SHICK,
12 ECF No. 16 13 Plaintiff,
14 v. 15 STATE FARM FIRE AND 16 CASUALTY COMPANY, an 17 Illinois company,
18 Defendant. 19 20 BEFORE THE COURT is Defendant’s motion for summary judgment. 21 ECF No. 16. Plaintiff is represented by attorney Gregory Michael George. 22 Defendant is represented by attorneys John B. McDonald and Ryan J. 23 Hesselgesser. Having reviewed the pleadings and the file, the Court is fully 24 informed and herein grants Defendant’s motion for summary judgment. 25 LEGAL STANDARD 26 Federal Rule of Civil Procedure 56(a) states that a party is entitled to 27 summary judgment in its favor if “the movant shows that there is no genuine 28 dispute as to any material fact and the movant is entitled to judgment as a matter of 1 law.” See Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). A fact is “material” 2 if it might affect the outcome of the suit under the governing law. See Anderson v. 3 Liberty Lobby, Inc., 477 U.S. 242, 248-249 (1986). A dispute is “genuine” as to a 4 material fact if there is sufficient evidence for a reasonable jury to return a verdict 5 for the nonmoving party. Id. at 248. 6 Once the moving party has carried the burden under Rule 56, the party 7 opposing the motion must do more than simply show there is “some metaphysical 8 doubt” as to the material facts. Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio 9 Corp., 475 U.S. 574, 586 (1986). The party opposing the motion must present 10 facts in evidentiary form and cannot rest merely on the pleadings. Anderson, 477 11 U.S. at 248. Genuine issues are not raised by mere conclusory or speculative 12 allegations. Lujan v. Nat’l Wildlife Fed’n, 497 U.S. 871, 888 (1990). 13 The Supreme Court has ruled that Federal Rule of Civil Procedure 56(c) 14 requires entry of summary judgment “against a party who fails to make a showing 15 sufficient to establish the existence of an element essential to that party’s case, and 16 on which that party will bear the burden of proof at trial.” Celotex, 477 U.S. at 17 322. “A complete failure of proof concerning an essential element of the 18 nonmoving party’s case necessarily renders all other facts immaterial.” Id. at 323. 19 Therefore, the question on summary judgment is “whether the evidence is so one- 20 sided that one party must prevail as a matter of law.” Anderson, 477 U.S. at 251- 21 252. Where there is no evidence on which a jury could reasonably find for the 22 nonmoving party, summary judgment is appropriate. Id. at 252. 23 BACKGROUND 24 State Farm Fire and Casualty Company (“State Farm” or “Defendant”) 25 issued a homeowner’s insurance policy to Ryan Ehrmantrout and Emily Shick 26 (“the insured”) effective June 15, 2024 to June 15, 2025. During this period, the 27 insured suffered damage to their home as a result of a refrigerator supply line 28 releasing water beneath their kitchen flooring. 1 After the water loss was discovered, Ms. Shick retained the services of 2 Environment Control Restoration Services, Inc. (“ECRS” or “Plaintiff”). On or
3 about July 1, 2024, and prior to State Farm being informed of a water loss claim, 4 ECRS entered into an “ASSIGNEMENT [sic] OF BENEFITS AND DIRECTION 5 TO PAY” with Ms. Shick and was on site as early as 11:23 a.m. that day. State 6 Farm received notice of the water loss at 2:32 p.m. on July 1, 2024. 7 ECRS did not complete its work at the residence until July 17, 2024, and did 8 not send an invoice to Ms. Shick until July 29, 2024. State Farm paid undisputed 9 amounts to the insureds for the mitigation and asbestos abatement work. ECRS 10 thereafter sent an IFCA notice claiming to be a first party claimant under IFCA 11 pursuant to the assignment agreement. This lawsuit was filed on January 10, 2025, 12 and removed to this Court on February 26, 2025. 13 On January 5, 2026, Defendant filed the instant motion for summary 14 judgment. ECF No. 16. Defendant argues the assignment between the insured and 15 ECRS violates the anti-assignment provisions of the insurance policy and ECRS 16 has no standing to assert extra-contractual rights. Id. Plaintiff’s response asserts 17 the assignment is valid and enforceable under Washington law and, by the 18 assignment, the insureds transferred their right to sue Defendant for recovery, 19 including IFCA and CPA claims. ECF No. 20. 20 DISCUSSION 21 A. Validity of Attempted Assignment 22 Defendant argues ECRS does not have a valid assignment from the insured 23 because it violates the anti-assignment provisions of the insurance policy.1 ECRS 24 contends the assignment is valid and enforceable under Washington law. Absent a 25
26 1State Farm’s insurance policy to the insured contains anti-assignment 27 clauses that prohibit the assignment of the policy or rights under the policy unless 28 State Farm gives express written consent. 1 valid assignment, ECRS has no standing to assert the claims presented in this 2 lawsuit. 3 Insurance policies are regarded as personal contracts and cannot be assigned 4 where an assignment is expressly prohibited by the terms of the policy, unless the 5 insurer consents. However, when an assignment is made by an insured after the 6 liability-causing event has occurred, the assignment is not of the policy itself, but 7 of a claim under, or a right of action on, the policy. Washington case law2 8 provides that “[a]fter a loss has occurred and rights under the policy have accrued, 9 an assignment may be made without the consent of the insurer, even though the 10 policy prohibits assignments.” Kiecker v. Pacific Indem. Co., 5 Wash.App. 871, 11 877, 491 P.2d 244 (1971) (emphasis added); see Public Utility Dist. No. 1 of 12 Klickitat Cty. v. Intern’l Ins. Co., 124 Wash.2d 789, 801 (1994) (“[T]he great 13 weight of authority supports the rule that general stipulations in policies 14 prohibiting assignments thereof except with the consent of the insurer apply to 15 assignments before loss only, and do not prevent an assignment after loss[.]”); see 16 also B.S.B. Diversified Co. v. Am. Motorists Ins. Co., 947 F. Supp. 1476, 1479 17 (W.D. Wash. 1996) (“Washington law recognizes an assignment of coverage for 18 an event or activities preceding assignment.”). Therefore, the rule in Washington 19 is that anti-assignment clauses apply to prohibit only an assignment before a loss, 20 and do not prevent an assignment after a loss. The rationale for this distinction is 21 that “[t]he purpose of a no-assignment clause in an insurance contract is to protect 22 the insurer from increased liability. After the events giving rise to the insurer’s 23 liability have occurred, the insurer’s risk cannot be increased by a change in the 24 insured’s identity.” PUD No. 1, 124 Wash.2d at 881; see Sherard v. Safeco Ins. 25
26 2This Court, sitting in diversity, must apply the substantive law of the forum 27 state. Erie R.R. Co. v. Tompkins, 304 U.S. 64, 78 (1938); Patton v. Cox, 276 F.3d 28 493, 495 (9th Cir. 2002). 1 Co. of Am., 2015 WL 5918397 at *5 (W.D. Wash. Oct. 9, 2015), aff’d, 714 F. 2 App’x 802 (9th Cir. 2018). 3 The undersigned agrees with Defendant that an insurer, in this case State 4 Farm, is not liable and does not have an obligation to pay for repairs until the 5 insurer receives notice of an actual claim or loss and the repairs are incurred. ECF 6 No. 24 at 4. Until those two things occur, the insured has no accrual of rights 7 under the insurance policy to assign.3 Here, it is undisputed that ECRS entered 8 into an assignment with the insured prior to any work being performed by ECRS 9 and even before State Farm was informed of a loss by the insured. Because no 10 accrual of rights occurred at the time of the assignment in this case, the Court finds 11 that the assignment in this case is invalid under the anti-assignment clause of the 12 insurance policy. Kiecker, 5 Wash.App. at 877. 13 B. Extra-Contractual Claims 14 Defendant’s briefing raises additional arguments regarding Plaintiff’s extra- 15 contractual claims. See ECF No. 16 at 11-16; ECF No. 24 at 7-10.4 In any event, 16 absent a valid assignment, ECRS has no standing to assert the claims presented in 17 this lawsuit. Given the Court has determined that the assignment is invalid under 18 the anti-assignment clause of the insurance policy, Defendant’s arguments 19 regarding extra-contractual claims need not be addressed. 20 /// 21 /// 22 /// 23
24 3Plaintiff’s briefing concedes that “if the insurer’s liability does not arise, the 25 insured cannot validly assign his/her right to benefits.” ECF No. 20 at 5. 26 4Defendant asserts that ECRS possesses no extra-contractual rights because 27 none existed at the time of assignment and that the assignment language does not 28 specifically refer to CPA or IFCA claims. 1 CONCLUSION 2 Based on the foregoing, IT IS HEREBY ORDERED: 3 l. Defendant’s Motion for Summary Judgment, ECF No. 16, is 4|| GRANTED. 5 2. Judgment shall be entered for Defendant. 6 IT IS SO ORDERED. The District Court Executive is directed to file this Order, provide copies to counsel, and CLOSE THE FILE. 8 DATED April 20, 2026.
10 _ Clgunedr € Seem C, Oy ond ALEXANDER C. EKSTROM [_ UNITED STATES MAGISTRATE JUDGE
13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
ORDER - 6