*****************************
Question - notice to cancel - working without contract
*****************************
Ken
I am a member of your newsletters and VERY happy to see great question.
Well I have a question, We were subcontractor on a job that turned into a nightmare to reprogram multiple IFP-1000 & IFP-100 panels at a senior living center. The original job was to reprogram the panel for central station for another company.
We were billing them (senior living center) Time and Material for the reprogramming as we are authorized programmers for the brands. This got out of hand very fast when the other company closed at 5pm. We were asked by the Property Management Company if they could be hooked up to our central station
as he could not leave the building unprotected as another company already turned them off when they unlocked the systems earlier in the day.
My office said yes, I did all the programming & testing to our central station and
got out of the facility around 3:30am in the morning. Now 6 months later for some reason they are playing games with the monitoring bills & the time and material bill for reprogramming. We have sent multiple regular mailed over due invoices, sent and got back multiple emails to the owners. In one email the owner said please send invoices directly to me, this was done.
I also told him we need him to fill out the agreements, which are still not signed
and returned.
Well today we got a fax from there accounting department, which is very weird that
it came from them not a law firm.
-----------
Fax Message:
Please be advised the New York State Law regarding alarm/monitoring specifically
states that in the event that this disconnection is being contemplated for whatever
reason, that the customer must receive a certified letter with a 30 day period to
remedy.
After review and verification from both of the aforementioned locations, this has
not occurred, which denotes a violation of regulatory compliance agreement.
If this said notification was merely a form letter for collection purposes, I ask
that it be immediately withdrawn. A full reconciliation of all accounts is being
conducted at this time and your department will be contacted as its conclusion
---------------
Now is it required by law that we must give 30 day notice for disconnection notices
by certified mail for NYS?
Also we have no signed agreements with them and without them we see the above
statement not enforceable by them, unless there is something I am missing in the NYS
business codes.
Thanks
Robert M.
*************************
Answer
*************************
Couple of things come to mind. First, to answer your question, there is no 30 day termination notice requirement in New York. Some AHJs may require notice before a fire alarm is terminated, but even those don't require 30 days notice as far as I know.
You brought problem on yourself by providing service without a contract. I don't know how else to put it - do not do any alarm / security work without a proper contract signed in advance of doing the work. If you're not licensed in New York you shouldn't be doing this work in New York and if you want to be or are licensed in New York you need a Secondary Office in New York. For assistance contact our Contract Administrator Eileen Wagda at 516 747 6700 x 312 or our License Dept - Jennifer Kirschenbaum,Esq., 516 747 6700 x 302.
****************************
Question - damages for termination of account
***************************
Ken,
Question – Which came up in Court.
If we are invoicing/collecting for:
1) Balance of Remaining Monthly Payments for term of contract
2) 80% of Communication Software
3) 80% of Balance of Remaining Monthly Payments as liquidated damages.
Argument was made that if the client just pays the Balance of Remaining Monthly Payments for the term of the contract, then the contract would be satisfied in FULL (early) and there should be absolutely no liability for the 2 & 3 listed above.
Is this correct, and if not, how should this be handled.
Thank you,
Brandon Smith
inVision Security Group
************************
Answer
************************
If the subscriber defaults you can accelerate the term of the contract, demanding the liquidated damages of 80% of the term charges. If can also deem the Communication System sold to the subscriber and add that to your damages. You can also collect the charges that became due prior to calling the contract into default. So re your question, you don't get to collect number 1. [this applies to the Residential and Commercial All in One contracts].
Another reason to use contracts
***************************
Ken;
Another reason to use your "all in one" residential contract, is the value it adds to your company. Over 8 years ago, a close friend of mine in the alarm industry passed away suddenly. (Ed List of List*Ed Systems.) I helped his widow for several months after his death in running service calls and doing invoicing, etc. for her. What I found as a result of that situation, is that Ed's accounts were not worth nearly what his wife should have been paid for them. Up to that point, Ed and I both relied on the central station contract for our contractual agreements with customers. In speaking with Ralph Costa of the Costa Insurance Agency, tghe contracts provided by central stations offered us little or no protection in the event of a loss. That contract only protected the central monitoring station. I have a customer who is a retired Superior Court Judge in New Jersey. He commented on how well your contract was written.
John McClellan
Blue Knight Security Systems
***************************
TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
**********************************************
Speaking Engagements
************************************************
*******************
Northeast Security & Systems Contractors Expo Thursday, May 22, 2014 10 am to 5 PM at Royal Plaza Trade Center, Marlborough, MA. registration https://www.expotracshows.com/neacc/2014/ Presentation on Alarm Law issues and Q&A will be at 2 PM. For more info contact Gary Spaulding, NEACC President
207-384-2420 gary@spauldingsecurity.com
*************************
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
***************************
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/
****************************
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
*********************
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
**********************