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Affiliated FM Insurance Co. v. LTK Consulting Services, Inc.
Washington Supreme Court
243 P.3d 521 (2010)
An electrical problem caused a fire to break out on a Seattle Monorail car, while it was in motion. Passengers were transported to another car, but the monorail suffered extensive damage. Ten years prior to the fire, the City of Seattle (City) had contracted with Seattle Monorail Services (SMS) to maintain and exclusively operate the monorail system. Pursuant to the contract, SMS carried an insurance policy for fire provided by Affiliated FM Insurance Company (AFM) (plaintiff). Also prior to the fire, the City contracted with LTK Consulting Services, Inc. (LTK) (defendant). LTK’s engineers were to examine the monorail system and to recommend and make repairs. As a result of the fire, AFM paid over $3 million to SMS according to the insurance policy and was subrogated to SMS’s rights against LTK. AFM then brought suit against LTK, alleging that LTK was negligent in failing to make necessary repairs. LTK filed a motion for summary judgment. The trial court granted LTK’s motion. AFM appealed. The Washington Supreme Court granted certiorari to review.
Rule of Law
Holding and Reasoning (Fairhurst, J.)
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