Rubesne Resources LLC v. Ace Property and Casualty Insurance Company

CourtDistrict Court, D. Colorado
DecidedMay 7, 2026
Docket1:24-cv-02300
StatusUnknown

This text of Rubesne Resources LLC v. Ace Property and Casualty Insurance Company (Rubesne Resources LLC v. Ace Property and Casualty Insurance Company) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rubesne Resources LLC v. Ace Property and Casualty Insurance Company, (D. Colo. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No. 1:24-cv-02300-DDD-SBP RUBESNE RESOURCES LLC, a Colorado Limited Liability Company, Plaintiff, v. ACE PROPERTY AND CASUALTY INSURANCE COMPANY, a Foreign Corporation, Defendant. ORDER ON DEFENDANT’S MOTION TO COMPEL

Susan Prose, United States Magistrate Judge This matter comes before the court on a motion to compel filed by defendant ACE Property and Casualty Insurance Company (“ACE”). ECF No. 56. The motion has been referred to the undersigned United States Magistrate Judge for resolution pursuant to 28 U.S.C. §636(b)(1)(A) and Federal Rule of Civil Procedure 72(a). ECF No. 58. Following a careful consideration of the briefing on the motion, the entire docket, and the applicable law, the court respectfully ORDERS that the motion is GRANTED in part, with ACE’s request for spoliation sanctions to be renewed, if appropriate, following the forensic examination of a cellular phone as ordered herein.

BACKGROUND I. ACE’s Prelitigation Investigation of a Fire on Plaintiff’s Property The impetus for this action is a devastating fire in Englewood, Colorado, that destroyed a retail store called “Kid to Kid,” operated by plaintiff Rubesne Resources LLC (“Rubesne”). First Amended Complaint, ECF No. 20 ¶¶ 12-13; ECF No. 56-4 at 2 (February 15, 2024 Golden Forensics Technical Report by Rick Baldwin, CFI1). A business owners’ insurance policy issued by ACE (the “Policy”) was in effect at the time of the fire. ECF No. 56 at 5 ¶¶ 2-3; ECF No. 56- 2 (Policy excerpts). Rubesne made a claim under the Policy. ECF No. 20 ¶ 27. According to ACE, in its investigation following the submission of Rubesne’s claim, it obtained information from multiple sources indicating the fire was deliberately set. To fully address the dispute between the parties at this stage of the proceedings, the court recounts in some detail the history of this case, commencing with events that occurred in the course of ACE’s prelitigation investigation of the fire. The fire was reported to South Metro Fire Rescue on January 5, 2024, at 11:58 p.m. ECF

No. 56 at 5 ¶ 5; ECF No. 56-3 (South Metro Fire Rescue Incident Report reflecting a print date of February 1, 2024). The report generated by the fire department states that an “Incendiary device” was located on scene and that the “Cause of Ignition” was “Intentional.” ECF No. 56-3 at 6. ACE then retained a cause-and-origin expert, who concluded that the cause of the fire was “incendiary”—that is “[a] fire that is intentionally ignited in an area or under circumstances where and when there should not be a fire.” Id. at 17 n.6. The cause-and-origin expert opined, “to a reasonable degree of scientific certainty,” that “[t]here were multiple areas of origin on the countertop containing the cashier positions, the floor where the cashiers stood, the floor in front of the cashier positions, and in two of the aisles containing clothing,” and that “[t]he cause of the

fire was incendiary with a person or persons entering the front of the store, probably using a key. They then poured gasoline in these described areas and ignited them with an open flame,

1 The court understands “CFI” to refer to a “Certified Fire Investigator.” probably from a lighter.” Id. As part of its investigation of the claim, ACE also retained a financial advisory firm to evaluate the financial condition of Rubesne at the time of the fire. ECF No. 56 at 6 ¶ 13; ECF No. 56-6 (July 19, 2024 report by Baker Tilly Advisory Group, LP). The firm concluded that Rubesne’s financial condition before the fire was “poor”: Based on the review of the documentation we received and reviewed, we observe that [Rubesne’s] reported operating expenses greatly exceeded its revenues from the inception of operations through the date of the fire on January 5, 2024. The financial documents appear to indicate that not all of the business’ expenses were paid in the period prior to the fire (rent, interest/loan payments, payroll taxes, etc.). If those expenses were incurred and paid, there would be an even greater shortfall between revenues and expenses. The business required significant outside sources of capital (besides the sales of the business) in order to pay its ongoing operating expenses. Based on the estimated startup costs, the reported expenses of the business during the “ready-to-buy period”, and the net losses incurred from March 2023 through December 2023, it would appear that all of the funds from the financing available to [Rubesne] would have been exhausted by the date of the fire. For all the reasons highlighted above, the financial condition of [Rubesne] was poor as of the date of the fire on January 5, 2024. [Rubesne’s] ability to continue as a going concern was likely in jeopardy and its existence beyond the short-term was questionable.

Id. at 3; see also id. at 4 (concluding that Rubesne “operated at a large net loss during the year prior to the fire and the continuing operating expenses of the business, if any, would not be expected to exceed the projected loss of the business during the period of closure”). On January 4, 2024—the day before the fire—attorneys for KeyBank National Association sent a letter to Karen Rubesne, the manager and “100% owner” of Rubesne, ECF No. 56 at 5 ¶ 7, informing her that Rubesne was in default on a $382,000 loan she had personally guaranteed and that the entire outstanding balance had been accelerated and was immediately due and payable. ECF No. 56-14 (excerpt from January 4, 2024 letter from Brown Dunning Walker Fein Drusch PC to Karen A. Rubesne and others re: Loan Obligation of Rubesne Resources, LLC). Also in connection with its investigation of Rubesne’s claim under the Policy, ACE sought information from three individuals directly involved in the operation of Rubesne: (1) Ms. Rubesne; (2) Amber McCurdy, Rubesne’s operations manager and Ms. Rubesne’s daughter; and (3) Anthony Casados, an employee of Rubesne who was at that time Ms. McCurdy’s fiancé. ECF No. 56 at 5-6 ¶¶ 7-8. Throughout the claim-investigation process, Ms. Rubesne and Ms. McCurdy were represented by the same counsel who represents Rubesne in this litigation. Id. at 5-6 ¶¶ 4, 12. During that prelitigation investigation, counsel for Rubesne produced call and text logs

for the period from December 1, 2023, through January 6, 2024, which showed numerous text messages between Ms. Rubesne and Ms. McCurdy, and one between Ms. Rubesne and Mr. Casados, immediately before and after the fire was reported at 11:58 p.m. on January 5, 2024. Specifically, between 10:58 p.m. on January 5, 2024, and 12:14 a.m. on January 6, 2024—sixty minutes before and sixteen minutes after the reported start time of the fire—Ms. Rubesne exchanged fifteen text messages with Ms. McCurdy. Id. at 6-7, ¶¶ 13-14. Ms. Rubesne sent one text to Mr. Casados at 12:14 a.m. Id. at 7, ¶ 14. The court refers to these sixteen text messages as the “Missing Texts.” ACE represents that the Missing Texts have never been produced or accounted for on a

privilege log. Id. at 7, ¶ 15. Rubesne’s privilege log does list texts exchanged on January 5, 2024,2 just not for the timeframe during which the Missing Texts were transmitted:

2 No texts are logged for January 6, 2024. See ECF No. 56-12 (August 27, 2025 Privilege Log). January 5, 2024:

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Bluebook (online)
Rubesne Resources LLC v. Ace Property and Casualty Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rubesne-resources-llc-v-ace-property-and-casualty-insurance-company-cod-2026.