KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on What’s liability and how to combat false alarm fines in friends/ ISC private meetings-schedule now
September 30,  2024
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Comment on What’s liability and how to combat false alarm fines in friends from article on September 14, 2024
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Ken,
          Reading Anon’s letter in your September 15th blog regarding his “friend” who wants Anon’s company to pay his false alarm fees, reminded me of an issue that we run into in due diligence.  Alarm company owners who don’t get signed, well written, Monitoring Agreements, from all of their customers, no matter how well they know them.  They tell me that they are close friends and would never file a claim.  I ask how close they are to the friend’s insurance company.  If there is a loss, and the “friend” files a claim, their insurance company isn’t going to give a flip about your relationship.  Expect a claim from their carrier.
          Anon is lucky that it is just an acquaintance and just a false alarm fee.  How about if the place burned to the ground and the “friend” had told his insurance company that he sold them a fire system?
          Contracts are important in relationships.  Not only do they clarify what each party is doing, they also clarify many things that each party isn’t doing.  If Anon would have used your Monitoring Agreements it would have been clear that he wasn’t on the hook for the false alarm fees.
Mitch Reitman 
817 698 9999 XT 101
Reitman Consulting Group
Fort Worth, TX 76133
http://www.reitman.us
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Response
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          For those buying or selling accounts or businesses Mitch provides a valuable service of performing the arduous due diligence. 
          He is correct when it comes to contracts because he gets to see the consequences of not having proper contracts or getting them signed properly.
          False alarm fines are a regular irritant between alarm co and customer.  Somehow the customer gets around to blaming you and wants a credit, which you don’t want to pay, especially if it wasn’t your fault.  Your Standard Form Agreement of course backs you up because the customer has to indemnify you for all fines [though I would not try to enforce that if the fine is for installing without a permit unless the customer, in writing, tells you to get started without the required permit]. 
          I haven’t heard about municipalities trying to fine the alarm company for false alarm, which doesn’t mean it’s not done;  anyone know what cities or municipalities fine alarm companies rather than the end user?  And has anyone turned to the end user for reimbursement of that fine?
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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