Today I learned that order does matter in your Gemfile.
I got the error
uninitialized constant Capistrano (NameError) in the app I was developing when I tried to boot my local server. I had
gem 'rvm-capistrano' listed before
gem 'capistrano' - I guess when Rails tried to boot the app it read Capistrano from rvm-capistrano and assumed that Capistrano wasn't installed.
I intend to look deeper into this problem, but wanted to notfiy anyone who comes across the same issue.
I ended up solving this problem through Ruby Forum from someone with a very similar problem but slightly different solution.