KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Which contract for monitoring water / what happens to 10 year contract if new sub signs month to month
July 19, 2019
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Which contract for monitoring water
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Ken
            We are being asked to monitor a high water alarm for a customer.  Which contract should we use the Security All in One or Fire All in One.  Since it is only an equipment alarm it really isn’t either one.
Christine
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Response
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            When it comes to commercial jobs there are two Standard Form Agreements to choose from.  The Commercial Fire All in One covers fire [which includes smoke, heat, and water flow].  It also will cover Area of Refuge two way communication system and In-Building Wireless Communications Systems for Emergency Responders.
            The Commercial All in One covers all security; any security equipment, systems or services.  Common usage includes intrusion systems, access control and cameras.  The Commercial All in One also will cover security gates and lighting.  It will cover environmental monitoring.  You would use it to monitoring high water alarm.  You will describe the equipment and services in the Schedule of Equipment and Services, which is a rider to the Commercial All in One.
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what happens to 10 year contract if new sub signs month to month
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Ken
            We use your updated Fire All in One.  I have a fire account with 110 months left on a contract. Subscriber sold the building. The new owner would like to only sign a contract and make it on a month to month 
            If I sign up the new building owner and they cancel within a few months can I still sue the original owner who signed the 10 year contract?
            Let me know
Hank
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Response
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            You should go after the old subscriber for the balance of the contract.  You could go month to month with a new owner but you run the risk that the court [or arbitrator] will either credit the old customer with payments made by the new customer, or deem the old contract superseded by the new contract.  Considering the options are 110 months on old contract or month to month on new contract, I’d recommend suing the old customer.  If collecting from the old customer is an issue then you should sue and then sign the new customer.  Your contract provides for 80% of the balance of the contract.  
            Odd that a commercial fire alarm customer would insist on a month to month contract, and I am not so sure you want to bother.  You will need to process a terminal number in NYC and then notify the FD if you cancel service.  Maybe I would go for it if the monthly charge is significantly higher because it’s month to month – and that is for monitoring only.  You shouldn’t do a service plan on a month to month basis.  You might get front loaded with service and then suffer a canceled contract.
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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
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com