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QUESTION:  DISCONNECT LETTER AND GETTING RID OF PROBLEM SUBSCRIBER
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Ken
    We have a client that we just cannot make happy. They have had some service issues which we always promptly respond to. However, it continues to linger and they threaten lawyers, etc. We would like to send them a letter with a 30-day notice that we are no longer a good fit.  Can I legally do this? And do you have a template or sample language we can use?
Thank You,
RA
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ANSWER
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    Just as the subscriber can't just decide to cancel the contract with impunity, neither can the alarm company.  In fact, a provision that permits one side to terminate "at will" and without penalty probably renders the agreement illusory, and illusory agreements are unenforceable in the sense that both sides will be permitted to terminate at will.  As I just wrote that government contracts came to mind.  Those contracts typically permit the government to cancel and pay the contractor only for work performed, no future profit or damages.  That would undoubtedly apply to government contracts, including those with alarm companies.  But I think that provision is unique to government contracts.
    In any event there is nothing in the Standard Form Alarm Agreements that permits an alarm company to terminate the contract just because the subscriber is a pain in the butt.  There are however a few provisions that assist.  

  •     You can raise rates 9% each year.
  •     You can charge for any service calls that are not for ordinary wear and tear.
  •     You can perform your service calls only during the specified hours, 9-5 Monday - Friday.
  •     You can charge for excessive calls or data usage.
  •     You can default the subcriber if a payment is not made on time.  You are not required to invoice your subscriber, although if you have been doing so then you probably would need to continue if you want to declare a default just after payment is due.  
  •     You can terminate prior to a renewal period.
  •     Assign the subscriber to another alarm company.

    If you decide to terminate a subscriber without legal cause be sure to notify the subscriber that service will terminate at a particular time, giving the subscriber enough time to replace your service, whether it's monitoring or service or whatever you're providing.  You should release all codes and passwords because if you decide to breach the agreement you will be liable for the difference between what you agreed to charge and what the subscriber had to pay to replace your service.  You don't want to increase that expense by refusing to provide the codes.  
    Probably be better to assign the subscriber to another alarm company; then you're off the hook.  Of course all of the above assumes you have a Standard Form Agreement, hopefully the All in One.  If not, better read your agreement carefully to determine your rights.
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