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Will ADT be liable for peeping tom employee / License for mobile pers / Signor of Commercial Fire contract dies or resigns / Sign up for Free Webinar
February 12, 2021
Signor of Commercial Fire contract dies or resigns
            When signing an All in One Fire Alarm Contract for a company with a board of directors, the head of the board signs the contract.  What happens when that board member resigns or gets voted out?  Do we need to re-sign contracts with the company?
Lost in the smoke
            I'll start by making your straight forward question a bit more confusing.  Corporations have board members; they comprise the Board of Directors.  A board member is not generally empowered to sign for or bind the corporation to a contract.  The function of the board of directors is to establish company policy and elect officers of the corporations.  It's the officers of the corporation who have the authority to sign contracts and bind the corporation.  See if you can get the board member to personally guarantee the contract signed by the president.
   An LLC is managed by its Managing Member, and that is who is authorized to sign for and bind the LLC, unless that member has designated and empowered others to sign.  An LLC can establish committees and I suppose board members also, none of whom would be the appropriate person to sign an alarm contract unless they wear another hat in the LLC entity.
            But I'll assume you want to know what happens if a president or managing member, or some employee authorized to sign your contract, resigns or dies.  The answer is nothing.  Your contract is with the entity, not with the person who signed on behalf of the entity.
License for mobile pers
            Are any states requiring licensing for monitored mobile products?
Thank you,
            PERS, or personal emergency response service, has different meaning depending on the device and service.  Originally synonymous with medical alert has taken on a more expanded meaning to cover the different monitoring services offered and provided.  So besides medical alert the pers devices now offer tracking and panic alert.  While traditional medical alert is not typically included in the definition of alarm services, requiring an alarm license, panic and emergency alarm with expected police dispatch, is often included in the alarm license requirement.  So if you offer only medical alert you probably don't need a license except in a handful of states, but if you offer panic alert and emergency response you will need to check each state's alarm license law to see if it includes that service.
Will ADT be liable for peeping tom employee
            What do you believe ADT's responsibility is for this incident with its technician?  If you could address that in the newsletter, I think many would be interested in reading that.
            I reported on the actions against ADT in the June 12, 2020 article; two class actions, one by signers of the ADT contract and the other by household members.  In our January 28, 2021 article we commented that the peeping tom ADT employee had pleaded guilty.
            I haven't checked but I suspect the two class actions against ADT are still pending.
            For most alarm companies the commencement of the two class actions would probably be enough to bankrupt the company.  It's expensive to defend class action lawsuits and I am not sure if most of you would have coverage, and those of you who do probably don't have enough coverage to cover these claims.
            The general rule is that employers are not liable for illegal acts of employees who are acting outside of their employment duties.  That appears to be the case here.  However if it can be proved that ADT know or should have known about the illegal activities it could face exposure. 
            Whether ADT knew or should have known depends on lots of facts that we don't have, as well as some technical issues pertaining to the equipment and systems and ADT installation and training policies.  ADT is usually well represented, so my guess would be that they win ultimately, though a nuisance settlement is possible.
            Anyone hear of anything, let us know.

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When:  February 16, 2021 at 12 PM noon ET  1 hour.  Will be recorded
Topic:  Analysis of risk if using control panels that don't meet UL and NFPA standards
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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