Roof Serv LLC v. Ruth & Associates Business Solutions LLC

CourtDistrict Court, N.D. Georgia
DecidedMay 29, 2025
Docket1:23-cv-04937
StatusUnknown

This text of Roof Serv LLC v. Ruth & Associates Business Solutions LLC (Roof Serv LLC v. Ruth & Associates Business Solutions LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roof Serv LLC v. Ruth & Associates Business Solutions LLC, (N.D. Ga. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

ROOF SERV LLC,

Plaintiff,

v. CIVIL ACTION FILE

NO. 1:23-CV-4937-TWT

RUTH & ASSOCIATES BUSINESS

SOLUTIONS LLC, et al.,

Defendants.

OPINION AND ORDER This is an insurance dispute. It is before the Court on the Plaintiff Roof Serv LLC’s Motion for Partial Summary Judgment [Doc. 77] and the Defendants Ruth & Associates Business Solutions LLC (“RABS”) and Ruth Matsushita’s Motion for Summary Judgment [Doc. 125]. For the following reasons, the Plaintiff’s Motion for Partial Summary Judgment [Doc. 77] is DENIED as moot, and the Defendants’ Motion for Summary Judgment [Doc. 125] is GRANTED. I. Background1 This action arises out of damages that the Plaintiff Roof Serv LLC allegedly suffered by relying on various certificates of insurance (“COIs”)

1 The operative facts on the Motion for Summary Judgment are taken from the parties’ Statements of Undisputed Material Facts and the responses thereto. The Court will deem the parties’ factual assertions, where supported by evidentiary citations, admitted unless the respondent makes a proper objection under Local Rule 56.1(B). issued by RABS from December 2021 to July 2023. RABS issued these COIs to a subcontractor of Roof Serv, Spartans Crew Roofing, LLC (“Spartans”), for workers’ compensation insurance. (Compl. ¶¶ 14–49). Defendant Matsushita

is the owner and managing member of RABS, an insurance brokerage firm. (Defs.’ Statement of Material Facts ¶¶ 1–2). Defendant Brigitte Chavarria is a licensed insurance agent who worked for RABS as an independent contractor beginning in June 2020 through sometime in 2023, as demonstrated by an independent contractor agreement between these parties. ( ¶ 3); (Pl.’s Resp. to Defs.’ Statement of Material Facts ¶ 3); [Doc. 85-6 at 2–3].2 Roof Serv never had its own contractual relationship with RABS or

Matsushita but obtained COIs from Roof Serv’s subcontractors to ensure that they carried workers’ compensation insurance for their workers. (Defs.’ Statement of Material Facts ¶¶ 7-8); (Pl.’s Resp. to Defs.’ Statement of Material Facts ¶¶ 7-8). At issue in this case, Spartans served as a subcontractor to Roof Serv. (Defs.’ Statement of Material Facts ¶ 9). On December 8, 2021, Matsushita submitted an application for Spartans for an

assigned risk worker’s compensation policy. (Pl.’s Resp. to Defs.’ Statement of

2 The Court overrules Roof Serv’s objection to the Moving Defendants’ assertion that Chavarria was an independent contractor for RABS because Roof Serv does not point to any evidence in support of its position that Raquel Matsushita was not capable of binding RABS on the agreement, in violation of Local Rule 56.1(B)(2)(a)(2)(i). Additionally, the Court notes that Chavarria does not join the present Motion; the Court entered default judgment against her in April 2024. [Doc. 20]. 2 Material Facts ¶ 11); (Dec. 8, 2021 Workers Comp. App., [Doc. 90-3]). The application was accepted by Travelers Property Casualty Company of America (“Travelers”) and coverage began with a policy period of December 8, 2021, to

December 8, 2022. (Defs.’ Statement of Material Facts ¶¶ 12-13). On December 15, 2021, Matsushita issued a COI listing Roof Serv as a certificate holder and identifying the Spartans’ workers compensation policy by its binder number (“December 2021 COI”). ( ¶ 14). The December 2021 COI contains a disclaimer that states: This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not affirmatively or negatively amend, extend, or alter the coverage afforded by the policies below. This certificate of insurance does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder.

( ¶ 17). By at least January 2022, Travelers notified Spartans that it was attempting to conduct a premium audit and that failure to comply with the audit would result in the cancellation of its workers’ compensation policy. [Doc. 90-4 at 2, 42]. The audit was completed in March or April 2022 with Rachelle Matsushita as a contact, but Travelers still canceled the policy in May 2022. [ at 10, 38-42]. Travelers then issued a premium refund check to the owner of Spartans, which was cashed. (Defs.’ Statement of Material Facts ¶ 20). In September 2022, Roof Serv asked Spartans for an updated COI and, despite knowing that the Traveler’s policy had been cancelled, Spartans 3 resbumitted the December 2021 COI to Roof Serv. ( ¶ 21). Spartans neither notified Roof Serv of the cancellation nor made any effort to obtain new coverage. ( ¶ 23). In October 2022, Chavarria submitted a second application

on behalf of Spartans for workers compensation insurance, this time identifying Jose Pelcastre, Spartans’ owner, as the insured. ( ¶¶ 25-26). This application was accepted by Liberty Mutual, and the coverage period under the new policy was October 18, 2022, to October 18, 2023. ( ¶ 28). On January 18, 2023, Chavarria issued a new COI listing Roof Serv as a certificate holder and identifying the Liberty Mutual policy (“January 2023 COI”). ( ¶ 29); [Doc. 75-5 at 37]. This COI contained the same disclaimer language as the

December 2021 COI. (Defs.’ Statement of Material Facts ¶ 30). The Liberty Mutual policy was cancelled as of January 12, 2023. [Doc. 76 at 3]. The cancellation notice stated that the policy was cancelled “for not complying with [Liberty Mutual’s] requests to complete a preliminary audit.” [ ]. Audit records indicate that multiple attempts were made to contact Pelcastre, Chavarria, and Matsushita regarding the need for documents to complete the

audit, but the auditor was unable to obtain any response. [ at 49-52]. Around April of 2023, Roof Serv’s own workers compensation carrier was conducting a premium audit when it identified issues with Spartans’ coverage. (Defs.’ Statement of Material Facts ¶ 33). In July 2023, Roof Serv contacted Matsushita to request updated COIs for Spartans. ( ¶ 35); (Pl.’s Resp. to

4 Defs.’ Statement of Material Facts ¶ 34). She informed Roof Serv that Spartans had “had insurance through the whole year” and that “[i]t had to be a mistake.” (Deposition of Tom McConnell, [Doc. 88 at 146:11-23], (“McConnell Dep.”)).

Revised certificates were issued at that time reflecting the actual effective dates of both the Travelers and Liberty Mutual policies; one was signed by Chavarria and the other by non-defendant Carolina Cano (“the Revised COIs”). [Doc. 75-5 at 21-22]. Roof Serv last used Spartans for a project in October 2023. [McConnell Dep. at 83:14-16]. Roof Serv filed the present action in the State Court of Gwinnett County seeking damages it allegedly incurred as a result of an audit with its own

insurance carrier, Auto-Owner’s Insurance. (Compl. ¶ 25). Roof Serv alleges that, due to the lapses in Spartans’ workers compensation insurance policies, it was forced to pay a total of $2,679,417 in increased premiums under the terms of its own policies for the periods that Spartans allegedly went uninsured. ( ¶¶ 44-49). The Moving Defendants removed the action to this Court in October 2023. Roof Serv moved for partial summary judgment as to

liability on November 1, 2024, and the Moving Defendants moved for summary judgment on February 10, 2025. [Docs. 77, 125]. Both Motions are presently before the Court.

5 II. Legal Standards Summary judgment is appropriate only when the pleadings, depositions, and affidavits submitted by the parties show that no genuine issue

of material fact exists, and that the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a), (c).

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Roof Serv LLC v. Ruth & Associates Business Solutions LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roof-serv-llc-v-ruth-associates-business-solutions-llc-gand-2025.