webinar announcement below
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Question
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Ken
Do you provide a standard form document to inform, or ask permission, of existing intrusion alarm customers of the sale or acquisition of their individual accounts by a new alarm company?
I enjoy reading your blog and rely on your expert advice throughout the year. You provide an invaluable service to the industry.
Sincerely,
Ed Maffey, President
Maffey's Security Group
Elizabeth, NJ
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Response
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I don't have a "standard" form or questionnaire for taking over an existing account from another. I'm not sure you need one. In fact, I think there may be only one question you need ask before taking over an account: "Do you own the equipment?", which you would ask the subscriber. You can rely on the subscriber's response, which you should incorporate into your contract. So when the subscriber signs your Residential All in One, assuming you aren't installing any new equipment, you will omit the Sales part of the contract, and you will state in the Schedule of Installation and Services, "taking over subscriber's exisiting alarm system, owned by subscriber".
I am mindful of other opinions, and they certainly have merit for a number of reasons. For example, what happens when your subscriber's representation is wrong, the radio, cell, panel or entire system is owned by the installing alarm company? When you take over the installing alarm company sues you for conversion of its equipment, and for tortious interferrence with its contract for good measure. Think that can't happen? Try taking over a fire alarm system in NYC and see what happens. [RK - any comment?]
But, at least in the first instance, this is the subscriber's problem, not yours (unless you're sued also). More likely the subscriber is going to be sued by the installing company, not only for the equipment but the remaining time on an RMR contract. That suit may impact you indirectly since your new subscriber is not gong to be happy stuck in the middle, assuming the subscriber wasn't anticipating a battle. Granted, some subscribers know they are dumping the installing company and believe they have justification to terminate the existing contract, which may be the case. Others may be unaware of what they signed and agreed to, which starts with their problem and often ends up your problem.
There is no down side to questioning the subscriber about its existing relationship with its alarm company. That interrogation may of course ending up causing the subscriber to stick it out with the installing company. [obviously I am not talking about the aggressive alarm companies that are out there making every effort to take over existing accounts - they are not going to ask any questions and some have gotten into hot water for using less than truthful tactics to get an account to switch - some not even knowing they were switching].
Your legal obligation however does not likely include interrogation of the subscriber. It's the subscriber's obligation to know what other contracts exist and who owns the equipment. This is especially the case if the subscriber called you. Perhaps a case [lawsuit against you] could be made if you initiated the contact, maybe targeting the subscriber because you saw a lawn sign or some other evidence of an existing alarm system.
You might also wonder what obligation you have to alert the subscriber that the installing company may have a contract, an RMR contract. I don't think you have any, especially if you didn't initiate the contact.
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Webinar:
Date and time: January 14, 2014 12 noon EST
Register here: https://attendee.gotowebinar.com/register/4283010462266875649
Title: Pitfalls for New and Emerging Businesses
Topic: issues to be covered include consequences of incomplete/no/poor documentation, mishandling of employee leaves, problems arising from the use of technology, protection of employer’s interests by employment contracts and how to handle severance pay. This is a broad ranging webinar addressing the areas in which employers, by failing to create a proper structure, set themselves up for more costly and problematic consequences.
Presented by Judge Ruth Kraft, Chair of the Employment and Labor Department at Kirschenbaum & Kirschenbaum PC
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