SMS Services LLC v. HUB International Northwest, LLC

MEMORANDUM

In this action for professional negligence and malpractice, SMS Services LLC (“SMS”) appeals the summary judgment grant in favor of its aviation insurance broker, HUB International Northwest, LLC (“HUB”). The district court concluded HUB did not owe a duty to SMS to advise it about the amount of insurance required under certain leases to which SMS was a party. We affirm.

The district court did not err by applying the “special relationship” test to HUB. Although a broker represents the insured while an agent represents the insurance company, both are insurance intermediaries paid by commission from insurance premiums, and no Washington cases have distinguished between the two in terms of general agency duties. See, e.g., AAS-DMP Mgmt., L.P. v. Acordia Nw. Inc., 115 Wash.App. 833 , 63 P.3d 860, 863 (2003). Nor did the district court err in determining that SMS could not demonstrate the requisite special relationship with HUB. Even if HUB held itself out as an insurance specialist, it did not receive compensation for giving consultation and advice “apart from” the commission on the insurance premiums. See Suter v. Virgil R. Lee & Son, Inc., 51 Wash.App. 524 , 754 P.2d…