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ADT chalks up another lawsuit win
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    Jewelry store subscriber sues ADT, Honeywell, Tellular and others for burglary loss and tried to premise the lawsuit on the typcial menu of causes of action: breach of contract, breach of warranty, fraud, violation of NJ's Consumer Frauds Act, negligence and gross negligence.  
    Preliminarily the Court made a few interesting.  As an alarm company owner you may perceive them as comical, as I did.  

  • Jeweler was in that business for over 30 years; thus was sophisticated business owner
  • ADT promised a state of the art monitoring system
  • Jeweler said the ADT contract was unreadable and he didn't read it, but also didnt let anyone know he couldn't read it
  • ADT explained the equipment to be installed, offered additional equipment, and offered to increase the limitation of liability in the contract
  • Jeweler never sought to insure his jewelry because he stated it was not a common practice to insure jewelry inventory and he decided instead to purchase an ADT security system and although he never
  • inquired into the cost of insurance it was his belief that the insurance would be too costly

    In 2010 Burglars broke in through a common wall from an adjoining tenant in the building and robbed two safes that were again the wall.  Never entering the premises no alarm detected them.  The Jeweler moved the safes to the middle of the room, away from the common wall.  
    Shortly thereafter Honeywell notified Tyco that Velocity Wireless, which was the wireless
provider for the two- way radio at premises would be decreasing their coverage. Tyco thereafter informed the subscriber that because Velocity Wireless was decreasing their coverage, the two-way radio would cease to fimction at some unknown point in the future. Tyco presented the subscriber with a proposal to install an AlannNet-I Network Interface to replace the existing two-way radio, however the subscriber refused to pay for the replacement radio because the subscriber had already paid for the old equipment in the original contract.  On October 14, 2010 Tyco replaced the two-way radio with a one-way Telular TG7 backup radio at no cost to the subscriber.
    On February 6, 2011, almost an exact year from the 2010 burglary unknown individuals again burglarized the premises, prying open the back door, entering the utility closet and disabled the
security system.  Unbeknownst to the subscriber the rear door of premises was set on a
delayed response and the burglars were provided an opportunity to spend an inordinate amount of
time in the jewelry store without their presence being detected. The intruders moved two safes
from the showroom into the restrooms where they were able to breach the safes using electronic
cutting tools and steal the claimed high-value merchandise located inside.
    Loss claimed was 10 million.  ADT, now Tyco, moved for summary judgment limiting its damages to $1000.   The motion was granted.  The Court did discuss the prevailing law in New Jersey in a lengthy decision, and I'll post it on our web site under NJ leading cases as soon as the decision is reported in official form.  I do however want to note one finding by the Court regarding the enforcement of the limitation of liability clause.  
    "Courts in this State have recognized that, without the freedom to prudently allocate risk, the alarm service industry would collapse because the cost of service would become prohibitive and business would evaporate."
    Regarding the negligence claims the Court held that all ADT's duties arose under the contract and that there were no other duties owed; thus no cause of action for negligence.
    Case is  JACOBSEN DIAMOND CENTER, LLC,, et al, vs. ADT SECURITY SERVICES
           INC., HONEYWELL INTERNATIONAL, INC et al
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 Opportunity for Sponsors -Event at Broadmoor Hotel, Colorado Springs  October 2014

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    There are still a few opportunities to participate as a sponsor at the Electronic Security Technology Summit in October 2014.  As a sponsor you will get to have presentation time, participate on panel discussions, help select attendees for the event, assist in matching attendees who want to do business with you and are looking forward to the private meetings that will be hosted and arranged.  All of this takes place in the intimate setting of the Summit Event at the Broadmoor Hotel in Colorado Springs.  You will have plenty of face time with potential customer, any one of which will justify the economics of sponsoring the event.  Cost of sponsorship various.  This is ideal for a central station, insurance program, manufacturer.  I'll be happy to participate in a presentation or panel discussion educates the attendees.  Take advantage of this event to meet over 80 eager and attentive 
owner/CEO/president attendees who are taking their time to meet with you because they want to.  Besides the social setting and events they are all there to do business.  Just a few sponsorships available so contact David Pagano or Alex Quirin today:  david.pagano@aspsummits.com  or alex.quirin@aspsummits.com  or 786.999.9738   www.aspsummits.com


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                                 WEBINAR ANNOUNCEMENT
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Register here:  https://attendee.gotowebinar.com/register/6433874012527407617


Topic:  Review of recent updates to the All in One alarm contracts


When:  June 10, 2014  12 noon EST  [30 to 45 minute presentation]


Presented by: Ken Kirschenbaum, Esq.


Who should attend:  Alarm Company owners and those responsible for contracts.


Description:  The All in One contract forms which were introduced in 2013 have undergone changes.  The specific changes and reason for the changes will be discussed, questions and comments addressed.  The forms include the Residential All in One, Commercial All in One and the Commercial Fire All in One.  Those companies who are using the All in One alarm contracts and those considering using these forms should attend.  
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com.  Most comments and questions get circulated.

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Speaking Engagements 

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Quick Response Dealer and Integrator Information and Technical Conference.   July 15 -16,  2014 at  Holiday Inn - Independence Ohio.  All alarm dealers are invited.   For more information, schedule and to RSVP contact Margie or Renee at reneet@quickresponse.net or call Margie/Renee at 800 462 5353 www.quickresponse.net
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Alarm Association of Greater St. Louis.   September 16, 2014.  at Tech Electronics HQs office at 6437 Manchester  Ave, St. Louis, MO 63139.  Meeting is from 11:45 – 1:30  Video conference presentation starting at 12:15 CST.  For more information or to register contact Tony Drago adrago@tyco.com  www.alarmstl.org/

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NYSESA - September 17, 2014 at Honor's Haven Resort, Ellenville, NY.  This is the NYS Electronic Security Assoc annual meeting.  Presentation on updated contracts and current legal issues will be at 10:30 AM.  For more information or reservations contact Dale R. Eller, Executive Director (814) 838-0301  dalereller@itzsolutions.com
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Alabama Alarm Association.  AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205  for more info contact AAA Executive Director: director@alabamaalarm.org  (205) 933-9000 

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Electronic Security Summit for 2014.  October 22-24, 2014  at the landmark Broadmoor Hotel. Colorado Springs, CO.  For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC.,  (786) 999-9738    alex.quirin@aspsummits.com    www.aspsummits.com