Service Restoration, Inc. v. Evanston Insurance Company

CourtDistrict Court, D. Minnesota
DecidedNovember 19, 2025
Docket0:24-cv-00938
StatusUnknown

This text of Service Restoration, Inc. v. Evanston Insurance Company (Service Restoration, Inc. v. Evanston Insurance Company) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Service Restoration, Inc. v. Evanston Insurance Company, (mnd 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

SERVICE RESTORATION, INC., Case No. 24-cv-938 (LMP/JFD)

Plaintiff,

v. ORDER ON CROSS MOTIONS FOR SUMMARY JUDGMENT EVANSTON INSURANCE COMPANY,

Defendant.

Plaintiff Service Restoration, Inc. alleges that Defendant Evanston Insurance Company’s refusal to pay for remediation and rebuilding work completed by Service Restoration constitutes a breach of contract or estoppel under Minnesota common law.1 See generally ECF No. 9. Both parties move for summary judgment. ECF Nos. 34, 40. Evanston’s motion for summary judgment on Service Restoration’s estoppel claim is granted because Service Restoration has an adequate legal remedy. Because the parties came to an agreement in which Evanston promised to pay for the remediation work, Service Restoration’s motion for summary judgment on its breach-of-contract claim is granted.

1 Service Restoration also brought a claim for quantum meruit but stipulated to the dismissal of that claim on June 24, 2025. ECF No. 48. BACKGROUND On December 16, 2022, a multi-unit residential property (the “Property”) owned by

Ryan Jutting was damaged by water. ECF No. 9 ¶ 7; ECF No. 38-4. Jutting had an insurance policy for the Property from Evanston. ECF No. 42-2. On December 16, 2022, Jutting contacted Service Restoration to begin repair work. ECF No. 38-8 at 33. I. Jutting Hires Service Restoration and Repair Work Begins Water damage projects progress in two distinct phases: mitigation and rebuild. ECF No. 38-1 at 38:10–15. Mitigation generally requires Service Restoration to “extract the

water, set the fans,” and “do[] all the dry-out process.” Id. at 38:5–7. Rebuild begins upon the completion of mitigation and is the process of putting “the property back together.” Id. at 31:15, 38:8–9. Service Restoration requires an owner to sign separate contracts authorizing each phase of work. Id. at 37:22–38:15. Accordingly, on December 17, 2022, Jutting entered a

contract with Service Restoration to begin mitigation, see generally ECF No. 38-6, which is Service Restoration’s “standard contract” used on all mitigation projects, ECF No. 38-1 at 37:14–21. In the contract, Jutting acknowledged that: I hereby authorize Service Restoration, Inc. (“Service”) to perform labor and services and provide materials to the Property (“Services”) to repair, replace and/or restore the Property . . . .

I understand that Service has no connection with my insurance company and/or the insurer for the Property, and that I alone have the authority to authorize Service to perform the services . . . .

Service makes no representations or warranties regarding my insurance coverage, or regarding whether my insurer will pay for all or any of Service’s services provided to the Property or me. I agree to pay Service in full for the Services Service provides to me or to the Property, regardless of my insurance coverage. As Owner/Agent of the property, it is understood that I have authorized the work and accept responsibility to [Service Restoration] for services rendered.

ECF No. 38-6 at 2. These contract provisions are critical because Service Restoration must ensure that an owner will pay for the work if insurance does not. ECF No. 38-1 at 119:16– 19. In fact, at the time Service Restoration began work on the Property, it did not know whether Evanston would cover the damage. Id. at 117:20–22, 119:20–23. Shortly after Jutting reported the water damage to Evanston, Evanston assigned Kimberly Stokes as the desk adjuster on the claim. ECF No. 38-3 at 95:3-5. Stokes hired Allcat Claims as the independent field adjuster, ECF No. 42-7, who then assigned the project to Alex Pruitt, ECF No. 42-8. Pruitt explained the duties of a field adjuster as “gather[ing] the information for the file, compil[ing] an estimate to submit to [the insurance company] for their review and at the end of the day be the eyes and ears of all information that we’re able to see on site.” ECF No. 38-2 at 8:3–7. In his capacity as a field adjuster, Pruitt helps the insurance company make its coverage determination, determine the scope and cause of loss, and determine what repairs are necessary. Id. at 11:12–12:4. But Pruitt

is not involved in “payments” or “determining actual coverage and exclusions.” Id. at 12:16–17. Instead, Pruitt works on a case until coverage is determined or he is told to “step away.” Id. at 19:2–7. Pruitt first spoke with Service Restoration on December 20, 2022. ECF No. 38-8 at 30–31. Service Restoration’s notes about this initial discussion indicate that it told Pruitt

about its initial mitigation plan, that Pruitt was “in agreement with all of it,” and that Pruitt would not appear on site until the initial steps were completed and they could discuss “what needed to take place for rebuild.” Id. at 31. Pruitt first appeared at the Property on

December 29, 2022, to figure out the cause of the loss and learn about Service Restoration’s proposed scope of repair. ECF No. 38-2 at 28:12–29:8. Service Restoration walked Pruitt through the Property and explained its initial mitigation efforts and proposed path forward, and Pruitt allegedly agreed with the scope of the proposed work and told Service Restoration to continue with the process. ECF No. 38-1 at 155:10–156:25. Daniel Schmidt, the owner and founder of Service Restoration, id. at 22:9–11, acknowledged that

Pruitt did not direct Service Restoration through specific mitigation steps nor confirm that Evanston would cover the damage. But Schmidt believed that because Pruitt agreed to Service Restoration’s proposal, id. at 156:16–157:7, 162:16–21, when Pruitt said to “keep going on it,” Service Restoration “took that as approval[]” of coverage, id. at 159:8–10. Pruitt, for his part, explained that Service Restoration should have known not to rely on

him for work authorization. ECF No. 38-2 at 58:5–8. Schmidt assumed from that point on that Evanston had approved coverage for the project. See ECF No. 38-1 at 20:8–12 (“The adjuster didn’t say there was an issue. The adjuster didn’t mention there was an issue. So we kept moving forward once we agreed on a scope.”). But Schmidt also acknowledged that “[j]ust because the adjuster comes

there doesn’t mean there’s always coverage.” Id. at 157:17–19. And Stokes explained that, even well into January 2023, she was still investigating whether coverage was at issue,2 and had not informed Pruitt nor Service Restoration that there might be a coverage concern.

ECF No. 38-3 at 58:16–59:14. On January 3, 2023, Service Restoration sent Pruitt an initial estimate for the mitigation, and on January 9, 2023, Pruitt followed up and asked for an additional bill. ECF No. 38-8 at 29. On January 18, 2023, Service Restoration prepared a final invoice for the mitigation portion of the project—made out to Jutting—in the amount of $222,486.45. ECF No. 42-13 at 2.

II. The Mitigation Bill Is Negotiated Service Restoration forwarded a copy of the invoice to Pruitt on January 31, 2023, and Pruitt forwarded it to Stokes. ECF No. 38-8 at 28; ECF No. 38-9 at 5. Stokes, in turn, referred the bill to an independent third-party auditor, Suredge, “to look at the invoice and determine whether the work and the cost of work is appropriate for what was done.” ECF

No. 38-3 at 70:16–18. Stokes understood that Suredge would contact Service Restoration directly to discuss the invoice. Id. at 70:25–71:3. Suredge assigned the case to adjuster Michael Miller. ECF No. 38-11 at 5. Miller described his role as auditing the project to “assess the invoice, assess the documentation

2 Stokes’s initial inquiry centered around whether heat had been maintained at the Property. ECF No. 38-3 at 58:11–59:2.

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