Affiliated FM Insurance v. LTK Consulting Services Inc.

OPINION

GOULD, Circuit Judge:

Affiliated FM Insurance Company (“AFM”), subrogated to the rights of its insured, Seattle Monorail Services Joint Venture (“SMS”), sued LTK Consulting Services Inc. (“LTK”), asserting that LTK had provided negligent design advice to the Seattle Monorail System that resulted in fire damage. LTK took the position that the so-called “economic loss rule” precluded this suit and that AFM did not have an adequate interest in the Monorail System on which to base a suit in tort.

Determining that Washington law was not clear on this subject, we certified the following…