Affiliated FM Insurance v. LTK Consulting Services Inc.

ORDER CERTIFYING QUESTION TO WASHINGTON STATE SUPREME COURT

ORDER

We respectfully ask the Washington State Supreme Court to answer the certified question presented below, pursuant to Revised Code of Washington § 2.60.020, because “it is necessary to ascertain the local law of [Washington] state in order to dispose of [this] proceeding and the local law has not been clearly determined.” This case involves a tort claim under Washington law for approximately $3 million in damages to the Monorail System— the elevated train system located in downtown Seattle — allegedly caused by negligent design advice from LTK Consulting (“LTK”). LTK asserts that the “economic loss rule” precludes this suit, and that the plaintiff, Affiliated FM Insurance (“AFM”), lacks an adequate interest in the Monorail System upon which to base a suit in tort.

I

We summarize the material facts: This suit is brought by AFM, based on the rights of its insured, Seattle Monorail Services Joint Venture (“SMS”). The Monorail System is owned by the City of Seattle (“the City”). In 1994, the City entered into a “Monorail Concession Agreement” (“the Agreement”) with SMS. The Agreement granted to SMS the right to…