more on which contract for new owner - fire and security / video verification / fire contract terms / liquidated damages May 16, 2017

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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more on which contract for new owner - fire and security / video verification / fire contract terms / liquidated damages
May 16, 2017
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more on which contract for new owner - fire and security from May 12, 2017
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Ken
    In some areas, any change, including ownership or name that requires a new occupancy permit, is a trigger for a “Fire Code Review”. There are several jurisdictions in Texas that do this and, when they do, the new owner has to bring the life safety systems, including the fire alarm system, up to current code.
    Regards,
Michael J. Moliere
MJM Private Security Services, LLC
Impact Security Training Center
Houston, TX 
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Response
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    Fire alarm companies need to be acutely aware if fire alarm upgrades are required.  If there is a loss it will be bad enough to find out the fire alarm was antiquated, but if it's out of code compliance the presumption of negligence will be reinforced, not to mention potential criminal charges.
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video verification
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Ken
    Love your emails!  I was wondering if you had any contracts in regards to Video Verification. 
    We have used your contracts for all of our security and camera installs as well as security monitoring contracts. I was wondering if the liabilities are different in regards to video verification. 
    Thanks so much. 
Kind Regards
Dean
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Response
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    The All in One Agreements cover video.  All kinds of video, which includes clips on activation, 24/7 live stream monitoring and live stream on activation, and other configurations.  
    The All in One Agreements also have a separate provision for alarm verification.
    Alarm verification is often thought to be ECV, enhanced call verification - a fancy way of saying - call the premises twice.  As a consumer I can tell you that I think the video verification is far more useful since it's the only verification possible if no one is home.

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fire contract terms
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Ken:
    As a current user of your contracts I want to thank you for all that you do for us in the industry with this forum as well as advice.  I ran across this provision in a competitor’s contract that reads:
    "Item _ - Unless otherwise specified herein, it is expressly understood and agreed that all fire equipment /system(s) /detectors/sensors are installed and serviced for property protection only and does not meet or comply with N.F.P.A Life Safety Codes.  Subscriber, unless otherwise specified herein shall bore (sic) all costs related to any conduit, special fire wire (Plenum), permits required by any government agency or insurance agency for compliance thereof. Unless otherwise specified herein all cost related to aerial cable, personnel lifts and/ or A/C Outlets shall be at an additional cost and paid to the Contractor by the Subscriber."
    Could I get your thoughts about this?
Thanks
John
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Response
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    So the fire alarm is installed for "property protection only"?  It doesn't "meet or comply with NFPA Life Safety Codes"?
    I wonder how that will compare to the advertising promotion and the website terminology used by the alarm company to sell fire alarm systems to homeowners and property owners?  What if a code compliant system is being installed, assuming this company would even know how to install such a system?   My thoughts are that the terminology is poorly drafted and poorly considered.  
    The Residential All in One has conspicuous provisions regarding fire alarms.  There is a provision that has to be checked if the fire alarm system is to code.  If it's not to code then we don't claim it's not a life safety alarm, we simply state that it's not to code, but it's what the subscriber requested.  Deficiencies in alarm systems or security measures is also addressed in the Disclaimer Notice.
    Contracts can be worded in many ways and styles.  I obviously prefer my style and my contracts.  So should you.  That way I don't have to waste my time looking at alarm contracts written by someone else trying not to copy my contracts verbatim.
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liquidated damages
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Ken
    One question, we send our dealers to you for contracts and we have noticed the liquidated damages clause has been missing from the last few we have received from our dealers.  Is there a reason for this? 
Thank you
Stephanie Helmig
Centra-Larm Monitoring Inc
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Response
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    Yes.  We have stopped using the liquidated damage clause.  We always used the limitation of liability provision and then tie the liquidated damage clause to it, but we don't need the liquidated damage clause.
    See the previous question and response.  I see lots of alarm contracts where the draftsman combines the liquidated damage clause with the limitation of liability clause.  They most likely do this because they don't know the difference between the two clauses, and don't appreciate that there is a difference, or don't even think about it because they are so busy trying to include every provision they can copy from as many contracts they can get their hands on.  
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THE ALARM EXCHANGE

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
516 747 6700
www.KirschenbaumEsq.com
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