KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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What notice from subscriber is required before you terminate fire alarm monitoring service
March 27, 2021
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What notice from subscriber is required before you terminate fire alarm monitoring service
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Ken,
            We have submitted the paperwork to your office for collection service. The subscriber has disconnected their fire alarm system from our monitoring station and I assume it is now monitored by another company. Can I cancel the service on our end to avoid any additional charges from me central and cellular services provider without receiving proper notice from the subscriber?
  Thank you,
 Marc
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Response
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            There are really two questions.  Do you need any notice from the canceling subscriber to terminate the fire alarm monitoring and should you terminate monitoring services on your end to cut costs.
            You can't force a subscriber to send you a notice of cancellation.  Furthermore, the Fire All in One [and other Standard Form Agreements, other than PERS] do not have any provision permitting the subscriber to cancel the contract early, only prior to an automatic renewal period.  A subscriber who decides to stop paying, for any reason, or who replaces the system with another alarm company, may not have the courtesy to let you know.  That apparently happened here.  While the subscriber could have notified you of its breach of the contract, the failure to send a notice will not change the consequences of the breach; we will hold the subscriber to the contract terms which will provide for 80% of the balance of the contract and 100% of what is owed at time of breach.  If the subscriber doesn't pay then we will also look for attorney fees and costs for arbitration and litigation. 
            Sometimes it's a good idea to continue the monitoring services even though a subscriber has defaulted and you have sent the contract in for collection.  If you know that the subscriber will claim that it canceled because the alarm didn't work or it never used the alarm the central station records showing usage of the system or that it was operating, will be very persuasive to prove that the subscriber breached without justification.
            If the system is off line then there is no reason to continue incurring monitoring charges; you can terminate them and you don't need any special notice or confirmation from the subscriber.  If you want to be prudent you can send a notice that you have terminated service, in which case be sure to mention that the subscriber remains liable for the balance of the contract pursuant to the contract terms.
            If you have K&K contracts you can turn the matter over to K&K's collection department.  Contact Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com.  Concierge Clients can coordinate through our Concierge Program Coordinator, Stacy Spector,Esq at 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com
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CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY
You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com