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Contract updates for Minnesota / Sign up for Group and Private Meetings
March 14, 2024
Contract updates for Minnesota 
          Yesterday we reviewed change in contract law in Michigan that requires updating your alarm contract.  Today we do Minnesota:
          Minnesota change in K&K contract is for consumers and commercial agreements.
          Waiver of subrogation shall not apply to causes of action based upon willful and wanton negligence. As per Gage v. Stanley Convergent Sec. Solutions, Inc.,
(“For these reasons, the Court holds that the anti-subrogation clause in the Gage-Stanley contract is unenforceable under Minnesota law insofar as it applies to Gage's claim against Stanley for willful and wanton negligence.
          It’s likely difficult to discern the difference between gross negligence and willful and wanton negligence, especially since willful and wanton conduct is usually characterized as conduct, not negligence.  This case uses the word negligence, not conduct, but I don’t know if there is a difference.  Gross negligence is sometimes defined as willful and wanton conduct with indifference to consequence of others. 
          In any event, this case law, like the case in Michigan discussed yesterday, clears the way for lawsuits against alarm companies by simply changing the characterization of the conduct from breach of contract, to negligence, to gross negligence or willful and wanton conduct.  It might take a trial to determine if the alarm companies actions or failure to act can be attributed to this carve out conduct.  That’s too bad because in other states the waiver of subrogation holds up, no matter what the allegations of wrongdoing.
          As I pointed out yesterday, 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. 
          In Minnesota 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 New Mexico changes to the contract.

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          Schedule a Private Meeting with Ken Kirschenbaum by calling Stacy Spector at 516 987 8428.
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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