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Contract updates for Michigan, Minnesota, New Mexico, Oklahoma / Sign up for Group and Private Meetings
March 13, 2024
Contract updates for Michigan, Minnesota, New Mexico, Oklahoma
          I know many of you scratch your head when I suggest that contracts be updated at least every two years.  It seems excessive, especially since you may be use to using the same contract form for decades [yes, decades].  One of my favorite questions is asking if the alarm company owner still uses foil, which was in use when his last contract was updated. 
          No attorneys have to review contracts nationwide as often as K&K; that’s because we provide contracts to the alarm industry and thousands of clients use K&K contracts.  K&K contracts are in use in every state and we constantly review the law in each state when we provide a contract in that state. 
          Changes to contracts become necessary, or advisable, when laws change as a result of legislation or court decisions.  Contract updates are also advisory when technology changes offering new devices, programs and services.
          K&K just completed a nationwide sweep to update the Nationwide Contracts for DIY and PERS [pretty much the only contracts that lend themselves to nationwide use].  The research revealed new laws in 4 states, Michigan, Minnesota, New Mexico and Oklahoma. 
          Rather than present all 4 states here I’ll do one and the others in the following days.  Today we do Michigan:
          Michigan change is for consumers and commercial agreements.
          Waiver of subrogation shall not apply to causes of action for gross negligence.
As per ACE Am. Ins. Co. v. Toledo Eng'g Co. (“Michigan law is clear that a waiver of subrogation provision will be enforced, except as it relates to a gross negligence cause of action.”)
          Waiver of subrogation is one of the most potent provisions in the K&K contracts.  It prevents the subscriber’s insurance company from coming after the alarm company after paying the subscriber.  Upon paying the subscriber the insurance company would be assigned the rights of the subscriber to sue whoever might be responsible for the loss.  The waiver of subrogation provision has a long history in law, dating back to commercial shipping in England, perhaps before.  Because a good percentage of lawsuits against alarm companies are brought by insurance companies exercising subrogation rights, and the waiver of subrogation was and absolute bar to that lawsuit, the provision is essential in the alarm contract. 
          Some states do not carve out gross negligence when enforcing the waiver of subrogation clause.  The clause is standard in all K&K contracts, now except for Michigan. 
          Should we include it in Michigan and hope that a judge will simply not apply it to gross negligence, rather than toss out the entire provision?  Probably not;  A judge may determine the clause violates public policy, now reduced to a statute, and not deem it modified to the extent enforceable. 
          This is a setback in Michigan [hopefully not other states that I am not aware of] because whereas other protective provisions in the alarm contract will not bar claims for gross negligence, the waiver of subrogation did; it was absolute bar to a subrogation clause.
          In Michigan it becomes all the more essential that you not permit the deletion of the Insurance Procurement provision in your K&K contract.  That provision will also bar a subrogation clause for gross negligence; at least it should in my opinion.
          Tomorrow I’ll review Minnesota changes to the contract.

Private and Group meeting schedule now available
Group Meetings:  See schedule below.  Reserve your spot by calling  Stacy Spector at 516 987 8428.
Private Meetings:
          Schedule a Private Meeting with Ken Kirschenbaum by calling Stacy Spector at 516 987 8428.
            Register for a Group Meeting by calling Stacy Spector at 516 987 8428
           Schedule Private meeting with broker Rory Russell by calling Stacy Spector at 516 987 8428.

Group Meetings: Topics and Schedule
Tuesday April 9.  Group Meeting: 3:00 pm to 4:00 pm – Monetize on your monitoring accounts; new incentive program; learn how to get unheard of incentives from your central station or move to another one. Group meeting conducted by Ken Kirschenbaum.
Wednesday April 10.  Group Meeting:  11:00 am to 12:00 pm - Selling and buying alarm accounts; Things to know. Group conducted by Ken Kirschenbaum.
Wednesday April 10.  Group Meeting:  2:00 pm to 3:00 pm – State sales tax and complex company valuation. Group meeting conducted by Mitch Reitman of Reitman Consulting Group.
Wednesday April 10.  Group Meeting:   3:00 pm to 4:00 pm – Central station – dealer relationship; contract issues; understanding the dealer agreement terms and why you need the K&K Rider. Group meeting conducted by Ken Kirschenbaum.
Thursday April 11.  Group Meeting:  10:00 am to 11:00 am - Insurance for your alarm business – best options; availability, pricing and claims. Group meeting conducted by Shawn Iverson of The Insurance Center.
Thursday April 11. Group Meeting: 11:00 am to 12:00 pm – Contracts – which ones you need and why you need them. Group meeting conducted by Ken Kirschenbaum.
Thursday April 11.  Group Meeting:   from 3:00 pm to 4:00 pm -
The Corporate Transparency Act. Group meeting conducted by Mitch Reitman of Reitman Consulting Group.
Private Meetings with Rory Russell of AFS:
         Schedule a private meeting with Rory Russell of Acquisition and Funding Services (AFS) to discuss buying or selling security, fire and integration business. Available times to meet with Rory Russell are as follows: Wednesday April 10 and Thursday April 11 between 7:30 am and 11:00 am and 12:30 pm and 4:00 pm.  Contact Stacy Spector to schedule a private meeting with Rory.  Call 516 987 8428
Contact Stacy Spector, Esq. for all scheduling at or 516-987-8428.

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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