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Sub lost to internet provider competing with alarm companies
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Ken
We had an interesting problem take place and would like your input…Century Link, Southern Oregon’s telephone/internet provide unbeknownst to us has entered into the alarm business…One of our Sales Consultant’s got a contract signed for an alarm installation/service and suggested that he call Century Link to have internet installed and we would intern connect the alarm via the internet…The customer contacted Century Link to order the service and in doing so the customer explained that the alarm system would be connect to same…To keep it short Century Link explained that they could provide the alarm service and bundle the service with the internet…we lost that customer…Do we have any recourse?
Ray
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I guess you won't be suggesting cable service.
Now that you know the cable operator is your omnipresent competitor you will have to modify your sale's pitch to explain how much better your product and service is compared to the cable company. If the subscriber decided to go with your competitor after the 3 day cooling off period you can hold the subscriber to the contract. That will put the cable company in an uncomfortable position.
Technically the cable company did commit tortious interference with your contract [and may have violated a few antitrust monopoly laws too] but it's very unlikely that it will be cost effect to go after the cable company. You might want to start a file and collect similar contracts that you lose to the cable company just in case you do decide to go after it.
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More on tortious interference
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Ken,
I agree with your take on the tortious interference with a contract question. This claim is very difficult to prove in a trial…in fact, in most instances such claims are thrown out on summary judgment motions. As you noted, simply selling a contract for services for which that same customer is already under agreement does not show tortious interference. For example, subscriber can have ten contracts to monitor a home alarm system. Evidence that a vendor intentionally directed, induced, or in some way influenced a customer to break an agreement (which typically includes stopping the associated payments), would be a first step to making this claim. This would involve showing that the defendant/third party had knowledge of the contract.
David Coughlin, Esq., CPP
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Response
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Knowledge of the existing contract is not enough, though some attorneys may disagree. Let's see how this plays out. Door knocker or telephone soliciation inquires re providing alarm services. Sub responses, already has alarm service. Solicitor says, are you satisfied or would you like to use our services instead, No deceptive tactics; no telling sub that existing alarm co is out of business; owner a crook; or that soliciting company is successor and needs to gain access too reprogram the alarm. I don't see a meritorious case here. There needs to be more than knowledge of the existing contract to really be exposed to a tortious interference lawsuit that you are likely to lose. Of course you can be sued and win, and you won't get your legal fees back in almost all jurisdictions.
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electronic contracts
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Here is how electronic contracts work. First you purchase the contracts you need at www.alarmcontracts.com. You then provide the contract to the Econtract company who assists in putting it on line or however you want to use electronic contracts. When you get the Standard Form Contracts you also get authorization to print the forms and obviously also use them electronically. The forms are copyrighted and trademarked, but we do permit you to make changes if you like.
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking Engagements
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Quick Response Dealer and Integrator Information and Technical Conference. July 15 -16, 2014 at Holiday Inn - Independence Ohio. All alarm dealers are invited. For more information, schedule and to RSVP contact Margie or Renee at reneet@quickresponse.net or call Margie/Renee at 800 462 5353 www.quickresponse.net
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Alarm Association of Greater St. Louis. September 16, 2014. at Tech Electronics HQs office at 6437 Manchester Ave, St. Louis, MO 63139. Meeting is from 11:45 – 1:30 Video conference presentation starting at 12:15 CST. For more information or to register contact Tony Drago adrago@tyco.com www.alarmstl.org
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NYSESA - September 17, 2014 at Honor's Haven Resort, Ellenville, NY. This is the NYS Electronic Security Assoc annual meeting. Presentation on updated contracts and current legal issues will be at 10:30 AM. For more information or reservations contact Dale R. Eller, Executive Director (814) 838-0301 dalereller@itzsolutions.com
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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Electronic Security Summit for 2014. October 22-24, 2014 at the landmark Broadmoor Hotel. Colorado Springs, CO. For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC., (786) 999-9738 alex.quirin@aspsummits.com www.aspsummits.com
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