Affiliated FM Insurance v. LTK Consulting Services, Inc.

15 F. Supp. 3d 1116, 2014 WL 1494026, 2014 U.S. Dist. LEXIS 53204
CourtDistrict Court, W.D. Washington
DecidedApril 16, 2014
DocketCase No. C06-1750JLR
StatusPublished
Cited by4 cases

This text of 15 F. Supp. 3d 1116 (Affiliated FM Insurance v. LTK Consulting Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Affiliated FM Insurance v. LTK Consulting Services, Inc., 15 F. Supp. 3d 1116, 2014 WL 1494026, 2014 U.S. Dist. LEXIS 53204 (W.D. Wash. 2014).

Opinion

ORDER DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

JAMES L. ROBART, District Judge.

I. INTRODUCTION

Before the court is Defendant LTK Consulting Services, Inc.’s (“LTK”) motion for summary judgment (Dkt. # 172). Two of the arguments LTK raises in its present motion are variations of arguments that LTK has previously raised, including that (1) the factual allegations in that Plaintiff Affiliated FM Insurance Co.’s (“AFM”) complaint are false, and (2) AFM’s claims are barred by the statute of limitations. (Compare Mot. (Dkt. # 172) with 5/1/12 Mot. (Dkt. #80).) The remaining arguments LTK raises on summary judgment are that AFM failed to mitigate its damages and assumed the risk at issue. (Mot. at 21-24.) The court has reviewed LTK’s motion, all submissions filed in support of and opposition thereto, the balance of the record, and the applicable law.1 Being fully advised, the court DENIES LTK’s motion.

II. BACKGROUND

This action arises out of a fire that occurred on May 31, 2004, that damaged the Blue and Red Trains of the Seattle Monorail as the Blue Train was leaving the Seattle Center Station. (See Not. of Rem. (Dkt. #1) at 7-11 (Compl. ¶¶ 1.1, 3.2).) Plaintiff Affiliated FM Insurance Company (“AFM”) paid its insured, Seattle Monorail System (“SMS”), $3,267,861.00 for damages resulting from the fire. (Id. II5. 1.) AFM, as the equitable and contractual subrogee of SMS, brings this action against LTK, which provided certain engineer services related to the Monorail, to recover damages associated with the May 31, 2004, fire. (Id.) In its complaint, AFM alleges:

In 2001, the City of Seattle contracted with ... LTK ... to refurbish the [SMS]. As part of this refurbishment, LTK ... recommended that the grounding system for the Blue and Red Trains that made up the [SMS] be changed. This change to the grounding system for the Blue and Red Trains was completed in 2002.

(Id. ¶ 3.1.) AFM further alleges that “[t]he electrical ground fault responsible for causing the fire in the Blue Train on May 31, 2004 would have been avoided if the electrical grounding system for the Blue Train had not been changed at the direction of LTK ... in 2002.” (Id. ¶ 3.3.)

AFM provides evidence that the original 1961 design of the Monorail employed a “floating” grounding system, which is a system in which the ground is not actually connected to the earth or another circuit [1120]*1120ground. (5/21/12 Way Decl. (Dkt. # 95) ¶¶ 3, 6.) Because car bodies of the Monorail were “floating” or electrically isolated, the metal car bodies did not carry current. {Id. ¶ 6.)

During the course of discovery in this action, AFM responded to a contention interrogatory from LTK by indicating that the City of Seattle had contracted with LTK in 1997 to provide engineering services related to the SMS. {See 3/30/12 Wahtola Decl. (Dkt. #52, 62) ¶25, Ex. 5 (attaching AFM’s Ans. to Int. No. 4).) In addition, despite the allegations in its complaint that LTK recommended changing the Monorail’s grounding system in 2002, AFM stated in its discovery response and elsewhere that it was during the course of this earlier project in 1997 or 1998 that LTK initially redesigned the Monorail’s grounding system from a floating to a “body ground to negative rail” grounding system, also known as a “grounded” or “bonded” grounding system. {See id. ¶ 25, Ex. 5; 5/21/12 Way Decl. ¶ 7(c).)

Part of the evidence at issue arises out of the 2005 insurance coverage suit between AFM and SMS. The insurance coverage lawsuit arose out of a dispute over certain costs SMS claimed were related to the fire and covered by its insurance through AFM. {See id. ¶ 18.) During the course of the coverage suit, counsel for AFM deposed the manager of operations and maintenance for SMS, Mr. Glenn Barney.2 {See id. ¶¶ 39-42.) In response to direct questioning from AFM’s counsel, Mr. Barney testified that LTK did not recommend changing the electrical grounding system during 2002, but rather recommended “keeping the ground bond between the car body and the negative rail.” {Id. Ex. 12 (attaching 12/8/05 Barney Dep. at 137:24-138:22).) In other words, in 2002, LTK recommended maintaining the bonded grounding system that LTK had apparently redesigned from a floating system to a bonded system in 1998.

LTK points out that AFM filed the present complaint within approximately one year of Mr. Barney’s deposition in the insurance coverage lawsuit. (Mot. at 3.) LTK emphasizes that the sole basis for AFM’s claim against LTK is the allegation that LTK recommended changing the grounding system for the Blue Train pursuant to LTK’s 2001 contract to refurbish the Monorail and that the fire would not have occurred if LTK’s recommended “change” to the grounding system had not been implemented in 2002. {Id. (citing Compl. ¶¶3.1, 3.3, 4.2).) LTK complains that the allegations in the complaint are contrary to the testimony of Mr. Barney in both the underlying insurance coverage lawsuit referenced above and more recently in the present lawsuit that LTK did not recommend a change in the Monorail’s grounding system in 2002. (Mot. at 3-4 (citing 4/20/12 Wahtola Decl. (Dkt. #76) Ex. 1 (attaching 4/10/12 Barney Dep. at 59:19-60:25); 196:1-197:3 (explaining that the Monorail’s grounding system could not have been changed in 2002 from a floating to a bonded system based on LTK’s recommendation because it was already bonded at that time)).)

In late 1998 or early 1999, Mr. Barney became aware that members of the SMS maintenance staff were experiencing electrical shocks while working on the Monorail and there had been instances of electrical “arcing” occurring between the [1121]*1121vehicle car body and the station. (Id. at 80:6-82:25; 126:9-127:11.) As a result of these events, Mr. Barney began investigating why the shocks and electrical arcing were occurring. (Id.) As a result of the investigation, Mr. Barney learned as early as March 2000 that the electrical grounding system for the Monorail was “grounded” or “bonded” rather than “floating.” (Id.)

SMS was required to “maintain” and “repair” the Monorail pursuant to its Concession Agreement with the City of Seattle. (See id. at 40:15-41:18, 92:19-93:5.) On October 6, 2000, LTK issued a proposal to the City of Seattle to provide services in connection with a Monorail renovation project that included a survey of the Monorail vehicles to document the existing grounding system. (Id. at 49:10-51:11.) SMS was to provide the funds to pay for LTK’s services. (Id. at 47:22-51:11.) The City accepted LTK’s proposal. (See 5/1/12 Wahtola Decl. Ex. 3.) Mr. Barney, however, voiced concerns about whether the work LTK proposed to perform was appropriate to correct the problems previously identified by SMS relating to the electrical grounding systems. (4/20/12 Wahtola Decl. Ex. 1 (attaching 4/10/12 Barney Dep. at 52:7-54:7).)

On June 29, 2001, the Blue Train lost power after experiencing an incident of electrical “arcing.” (Id. at 91:4-93:5.) In addition, the Blue Train suffered property damage in the form a one-inch by three-inch hole that was burned through the body of the car. (Id. at 90:21-91:10; 91:24-92:9.) Shortly following the June 29, 2001, incident, Mr. Barney wrote an incident investigation report. (Id. at 90:7-91:19.) In his report, Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
15 F. Supp. 3d 1116, 2014 WL 1494026, 2014 U.S. Dist. LEXIS 53204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/affiliated-fm-insurance-v-ltk-consulting-services-inc-wawd-2014.