KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** beginning collection process and what to expect September 29, 2026 ************************** beginning collection process and what to expect ************************* Ken We are a Concierge Client and need advice regarding a subscriber who wants an early termination of its agreements. We have a subscriber with 7 locations. The subscriber has signed 7 separate Fire All in One agreements, each for separate locations; each for 3 year term and calling for $60 RMR for monitoring and per call inspection. Subscriber has or wants to terminate the contracts. The Fire All in One contracts have not been modified. There is no reason for termination other than subscriber’s desire to work with another alarm company. We have considered the options of join walking away or pursuing a proceeding to enforce the contract and at this point believe we should seek to enforce the contracts. Is the subscriber within its rights to simply terminate? The contracts all have different start and ending dates and all are in original term. name withheld ************************ Response ************************ There is no “early termination” right unless the subscriber interprets the liquidated damage provision [calling for 80% of balance of contract term] an early termination right. The subscriber would have that option to pay off the contract. If the subscriber does elect to terminate that way it will avoid the legal fees, interest and costs that you would be entitled to if we have to bring collection proceedings. That can save the subscriber the add-on legal and expense dollars, which could add well over 33% of what’s already owed on the RMR calculation. You can enforce the liquidated damage provision insisting on 80% of the balance of each contract for the monitoring charges. Once you figure out number of months left on each contract, times $60 for monitoring, less 20%, you’ll know what you’re owed. Send a consolidated invoice for the total amount showing the breakdown. Give them some time to consider and pay; [some time would be until you hear from them that they aren’t paying, or paying enough to satisfy you, or no more than 30 days] if they don’t pay you can turn it over for collection to K&K by calling Kathleen Lampert at 516 747 6700 x 319 or emailing her at KLampert@Kirschenbaumesq.com. Kathleen will then start the process for collection. What can you expect in collections from K&K? We will initiate an arbitration proceeding within a day or so of receiving the paperwork from you. Your our of pocket will be $175 or approximately 1% of the amount owed for the arbitration filing fee. Most cases settle rather before a hearing; settlements generally fall within the 75% to 90% range, but that includes the added legal fees usually. Your expectation on recovery is important because a subscriber may offer you a settlement before you send the matter to K&K and sometimes that offer is close enough that you should accept the offer. Other advice that comes to mind is that you should not spend much effort in-house trying to deal with the subscriber who is in breach. Prolonging your in-house effort will have the effect of annoying the subscriber to the point it will not make any offer to resolve or leading the subscriber to think your all bluff and bluster and that you’re not serious about enforcing the contract; neither a good approach, so you can give it one shot to collect but then I recommend sending the matter to K&K’s collection department; they are far more experienced, efficient, skilled and effective than your in-house staff. ************************** STANDARD FORMS Alarm / Security / Fire and related Agreements. click here: www.alarmcontracts.com *************************** 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. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
